Definitions of Resellers

The term reseller is actually very broad and covers many different methods of earning revenue off the back of a product or service which is not owned or manufactured by you.  Here are a few examples of different types of reseller relationships.

Reseller also known as VAR  (Value Added Reseller)

An individual or company proactively selling a product or service owned or provided by another company for a profit or commission. Resellers may take stock or they may simply process orders through a website or by phone. Often a reseller will not need to be involved beyond the point of sale enabling them to focus on generating sales and maximising profits. There is no standard reseller program and each company will have its own terms, conditions and method of remuneration. Some companies will offer bespoke terms on a case by case basis so it is advised that a reseller contact a merchant to negotiate terms.

Affiliate

Most commonly affiliates solely drive web traffic from one website to another and are remunerated per visit or per sale. If you have space on your website for a link or banner then becoming an affiliate is a great way of earning additional revenue without increasing your work load. Affiliate marketing is not proactive so it is important to bear in mind your existing customer demographic when choosing a merchant or product to promote on your website. Both affiliates and merchants can monitor the performance of link/banner.

Retailer

The term retailer includes both online and offline retailers. Retailers typically purchase a quantity of a product(s) to resell through a shop or website for a profit. Retailers can sell any type of products from food and beverage to technology making it one of the largest industries globally.

Partners & Channel Partners

Larger vendors commonly use the term partner or channel partner. Partners are still effectively resellers and in most cases there is little or no difference between them. As with VAR’s partners would certainly be proactively selling. Partner channels also tend to be technology related and as result some technical knowledge of the products or services may be required although it does vary between vendors. Opinions are split however we believe that a resellers primary purpose is generating new business so therefore where ever possible the technical side of the business to the vendor.

Referral Partners

Referral partners are effectively another type of affiliate however unlike traditional affiliates it is possible to pass leads by email, telephone or in person. Referral partners are typically remunerated with a commission although this may either be per lead or per sale. Acting as a referral partner is ideal for an individual or company that doesn’t have the product knowledge or resources to really get involved but does periodically come across opportunities.

Drop shipper

A drop shipper is effectively a retailer who sells products without actually taking stock. This is typical for online shops who can easily take an order through their website and then pass the order details to the manufacturer or vendor to ship the product directly to the customer. As with a normal retailer a drop shipper will purchase a products, mark them up and resell them for a profit.