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Types of Resellers and Retailers

Both Resellers and retailer vs reseller retailers are businesses that buy items, stock and sell them to make money. They may be online as well as in brick and mortar shops or both. They purchase their products from wholesalers and distributors, and then sell the products to consumers or businesses. There are many types of resellers, however there are two main types: Dropshipping and Private Labeling. Private labeling is a practice that allows a reseller to rebrand a manufacturer’s product by adding their own name, logo and packaging. This type of reselling is common in the technology industry where a computer manufacturer might offer their own hardware and third-party software and accessories.

Bundling is an additional form of selling. Bundling happens when a reseller bundles similar products from different companies to create a bundle that is attractive. A reseller, for example might buy digital cameras, memory card and Photoshop Lightroom software made by various manufacturers to create a kit to help new photographers get started in digital photography.

Typically, retailers purchase items in bulk from wholesalers and distributors and then offer them at higher prices to end users. They also sell their products through marketplaces online, like eBay and Amazon. Retailers offer a range of value-added services such as customization and technical support. They can also add additional charges, like handling and shipping charges. Home Depot, for example may charge more than Walmart because it owns its own store and can handle logistics like storage and delivery.

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