Glossary › Selling & Business › Reseller

🤝 Selling & Business term

Reseller

A business or person that buys products, usually at a discount, and sells them on to consumers at retail price. The reseller owns the stock and keeps the difference as profit.

Who owns the stock?
🛒
Reseller
Buys, then sells
🤝
Sales agent
Sells for commission
Resellers earn a margin, agents a commission
The key difference is who takes on the stock.

Common questions

Is a reseller the same as a distributor?

Not quite. Distributors usually supply other businesses, while resellers usually sell to consumers. Some businesses do both.

How do I price for resellers?

Set a reseller price low enough that they can sell at your recommended retail price and still make a profit. Check that your own margin still works at that price.

Should I set rules for my resellers?

Yes. Agree how your brand and photos can be used, whether there is a minimum selling price and how returns are handled.

Why it matters

Resellers can spread your product further without you selling each unit, but too many resellers undercutting each other can damage your price and brand.

🇸🇬 In Singapore

Many resellers sell through Shopee, Lazada, Carousell and social media. Shoppers often compare reseller prices against Taobao and Temu, so leave room for a margin that still beats your ceiling price.

Tips

  • Agree a recommended retail price.
  • Limit how many resellers you appoint at first.
  • Supply good photos and product details.

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