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    Types of Resellers and Retailers

    Resellers and retailers are both businesses that buy and store products, then sell them with a view to earning the purpose of earning a profit. They can operate on the internet, in brick and mortar shops or both. They purchase from wholesalers and distributors, and then sell to businesses, consumers or consumers. There are many types of resellers, however there are two main types: Dropshipping and Private Labeling. Private labeling is that allows a reseller to rebrand the product of a manufacturer, adding their own logo, name, and packaging. This type of reselling takes place often in the tech industry in which a computer manufacturer may offer both their own hardware as well as third-party accessories or software.

    Another method of reselling is bundling. Bundling occurs when a seller combines similar products from various firms to create a set that is attractive. A reseller, for instance could purchase digital cameras, memory cards and Photoshop Lightroom software made by various manufacturers to create a kit to assist new users get started in digital photography.

    Retailers typically buy in bulk from distributors or wholesalers and then sell the goods at higher prices to consumers. They also sell on marketplaces on the internet, such as eBay and Amazon. Retailers often offer value-added services like technical support and customisation. They can also add on additional fees, such as shipping and handling charges. For example, Home Depot might charge more than Walmart for grills for barbecues because it has a physical store and is able to handle logistics such as distribution and storage.