What is Reseller?

Reseller - a person or business that purchases goods or services from another company and then sells them to customers for a profit.

A reseller can be an individual entrepreneur, a small company, or even a large corporation. They purchase products in bulk directly from manufacturers at wholesale prices and then mark up the price to sell to their own customer base. This process allows resellers to offer competitive pricing while still earning a profit.

Reselling is not limited to physical products only; it also applies to digital products and services like web hosting, domain names, software licenses, among others. Essentially any product or service that one business can buy in large quantities and resell for profit can fall under the umbrella of reselling.

The Benefits of Reselling

For entrepreneurs looking for opportunities to start their own businesses, reselling can be an attractive option with numerous benefits. Firstly, it requires minimal startup costs as there's no need for R&D since you are selling pre-made products/services purchased elsewhere.

In addition, it’s easy to get started as most wholesalers already have established procedures for working with resellers making the whole process streamlined. The flexibility afforded by buying at wholesale prices means you have more control over your inventory levels compared to traditional retailers too.

Becoming a successful reseller isn't always simple but those who do well reap significant rewards such as freedom from time/cardinality constrains associated with typical employment arrangements by having more flexible work schedules/locations among other advantages.

The Drawbacks of Reselling

Sometimes people are attracted by glamourous promises related with this type of activities without considering potential risks involved:

Tight competition: since the barrier to entry is low in terms of capital and expertise there are many resellers eager for a slice of profits which means you have to upskill to stand out from the pack. Furthermore, actual wholesaler can decide not to work with particular resellers anymore, what may produce stock-out situation or decreased profitability.

Quality control: as a reseller, it's crucial that you ensure the products/services sold meet high standards; otherwise, customers will lose trust in you quickly leading ultimately to reputational damage.

Tight margins: because most wholesalers set certain limitations on how much their goods can be marked up by retail resellers such as margin level, competition and other market factors --- it’s important not only find trustworthy partners but also establish sustainable pricing strategies.