Resellers are an important part of a country's modern economic life. You can understand what kind of people they are and what their peculiarity is by examining their activities, types and functions performed.
Reseller activities
A reseller is a person who occupies a position between the end consumer and the manufacturer in the distribution system. Mediation has certain conditions that can be expressed in two forms.
The first form is commercial activity. In this area, the reseller buys and sells goods at his own expense and on his own behalf. This means that the goods are the property of the intermediary, and the risk of selling the products lies with him. The reward is the difference between the purchase price and the selling price of the product.
The second form is commission activity. In this case, the intermediary purchases and sells goods on behalf of the person he represents, and not on his own behalf, as in the previous case. It turns out that the intermediary does not have ownership of the products he sells. Moreover, his risk is much less than the risk of a trader who carries out commercial activities. The reward is a percentage of the value of the product or a fixed amount.
Reseller functions
There are five main functions of resellers. The first is the sale of products. The transfer of products to consumers occurs through the registration of acts of purchase and sale. Of course, in this case, the cost of the product increases for the consumer, but this is a premium for the corresponding service, since resellers do not carry out charitable activities.
The second important function is logistics. Logistics allows for the physical movement of goods. These issues are resolved not only by the intermediary, but also by the manufacturer. This area includes issues of storage of products, their delivery, and so on.
The third function is the initial assessment of products. In this case, the reseller is a representative of the final consumer. If an intermediary has purchased a product, it means that he is sure of its quality, if not, it means that he doubts its reliability, properties, and so on.
The fourth function is advertising. Resellers advertise products, that is, they create a communicative effect that allows them to promote the product.
The fifth function is product service. Of course, this applies to products such as equipment, cars, and so on. The consumer wants a reliable product and a good service system, so traders are ready to take on this function.
Types of resellers
There are wholesalers, that is, organizations that buy goods from manufacturers for further sale to retailers. These wholesalers are called distributors. Another type of reseller is retailers, that is, private entrepreneurs or organizations that buy goods from manufacturers or the above-described group in order to sell them to end consumers.