Resellers and Retailers are two businesses that buy merchandise, store and then sell it for a profit. They may be on the internet or in brick and mortar stores, or both. They purchase products from wholesalers or distributors, and then sell the products to consumers or businesses. While many types of resellers exist but there are two main types: Private Labeling and Dropshipping. Private labeling is where the reseller rebrands an item from a manufacturer by adding their own logo, name, and packaging. This kind of reselling happens frequently in the technology sector where a manufacturer of computers might offer both their own hardware and third-party software or accessories.
Bundling is another form of reselling. This is the process where a reseller groups together similar products from different companies to create an attractive package. A reseller, for example could purchase digital cameras, memory card and Photoshop Lightroom software made by various manufacturers to create a kit designed to help novice photographers start their journey in digital photography.
Typically, retailers purchase goods in bulk from wholesalers and distributors and then sell them at a higher cost to end users. They also sell their products through marketplaces on the Internet like eBay or Amazon. Retailers usually offer value-added offerings, such as technical support and customization. They may also charge additional costs, like handling and shipping charges. For instance, Home Depot might charge more than Walmart for barbecue grills because it has an actual store and can handle logistics such as distribution and storage.