Types of Resellers and Retailers

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Resellers and Retailers are businesses that purchase products, store and sell them for the purpose of earning a profit. They can operate online, in brick-and-mortar stores or both. They buy from wholesalers or distributors, and then sell the items to businesses or consumers. Although a variety of types of resellers exist There are two main kinds: Private Labeling and Dropshipping. Private labeling is that allows a reseller to rebrand an item from a manufacturer by adding their own logo, name and packaging. This kind of reselling is common often in the tech industry where a manufacturer of computers might offer both their own hardware and third-party accessories or software.

Bundling is another type of reselling. This is the process where a reseller groups together similar products from different businesses to create an attractive package. For instance, a retailer might purchase digital cameras memory cards, and Photoshop Lightroom software from different manufacturers to make kits that help new users to get started with digital photography.

Retailers typically buy in bulk from wholesalers or distributors, and then sell the products at higher prices to consumers. They also sell via online marketplaces like eBay and Amazon. Retailers offer a variety of added value services, such as customization and technical support. They can also add additional costs, such as handling and shipping charges. Home Depot, for example, might charge more than Walmart because it has its own store and can handle logistics like storage and delivery.

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