What is a Reseller?
A reseller is a business or individual that buys products from manufacturers, distributors, or wholesalers and sells them to end customers, often at a markup. Resellers add value by offering convenience, customer support, or niche market expertise in both retail and eCommerce.
Why is a Reseller important?
Resellers play a vital role in the supply chain by bridging the gap between producers and consumers. They help manufacturers reach wider audiences while giving customers easy access to products. In retail and online commerce, resellers often shape customer experience, manage pricing strategies, and drive sales growth across multiple channels.
Expanded Context and Use Cases
Reseller models span across B2B and B2C markets, from electronics distributors to software license resellers. Authorized resellers maintain official partnerships with brands, ensuring authentic products and warranty support. Value-added resellers (VARs) combine products with additional services like installation, customization, or training.
The omnichannel retail landscape has created new opportunities for resellers to integrate online and offline sales channels. However, challenges include margin pressure, inventory management, and maintaining customer relationships while competing with direct-to-consumer brands. Successful resellers leverage technology to streamline operations and provide superior customer experience.
Types of Reseller Models
| Reseller Type | Characteristics | Target Market |
| Authorized Reseller | Official brand partnership, warranty support | Customers seeking brand authenticity |
| Value-Added Reseller (VAR) | Products + services bundle | Businesses needing complete solutions |
| Retail Reseller | Direct-to-consumer sales | End customers in local markets |
| Online Reseller | E-commerce focused distribution | Digital-first customers |
| Wholesale Reseller | B2B bulk distribution | Other retailers and businesses |
Reseller Success Strategies
- Build strong supplier relationships for better pricing and support
- Focus on niche markets where specialized knowledge adds value
- Invest in customer service to differentiate from direct sales
- Leverage technology for efficient inventory and order management
- Develop omnichannel presence to meet customer preferences
Reseller Performance Metrics
- Gross Margin Percentage – Profitability per product category
- Inventory Turnover Rate – Efficiency of stock management
- Customer Acquisition Cost – Marketing and sales effectiveness
- Average Order Value – Revenue optimization opportunities
- Customer Retention Rate – Relationship building success
Legal and Compliance Considerations
- Authorized dealer agreements and territory restrictions
- Product warranty and support obligations
- Tax compliance across multiple jurisdictions
- Data protection and customer privacy regulations
- Return and refund policies align with manufacturer requirements
ConnectPOS Reseller Program
ConnectPOS also offers a dedicated Reseller Program designed for businesses and partners who want to grow revenue by providing POS solutions. By joining the program, resellers gain access to exclusive benefits such as competitive margins, marketing support, training, and priority technical assistance. It’s a win-win model that allows resellers to expand their portfolio with a trusted POS system while helping clients succeed in omnichannel retail. Learn more and apply here: ConnectPOS Reseller Program.
