Definition & 9 Stages of How Resellers Work

Now being a reseller is the right choice, especially those who need a side job. Understand how resellers work which is thoroughly discussed in this article. In fact, you will also understand the advantages and disadvantages of joining this reseller objectively.

The development of the world of technology has had a big influence on the development of buying and selling, for example, in the marketplace. Thousands of sellers can sell goods there, ranging from clothing, accessories, electronics, household appliances to food.

Speaking of marketplaces, have you ever shopped there? If so, have you ever been faced with similar products with different sellers and different prices?

Resellers and Dropshipper

how reseller work

That's where there are a lot of reseller and dropship players, people who don't have products can also sell on the marketplace. The trick is to upload the product from the supplier and then install it at a higher price. From the price difference, the droshiper gets a profit.

Even though every sale gets a small profit, if you multiply it by hundreds or even thousands of purchases, of course the profit is big, right? And that's without the hassle of production, packing, and shipping. Just sitting at the computer, right?

So in order to understand even more how the system works, on this occasion tipandroid will share about resellers, starting from their understanding, how to work, the benefits to how to start it until you become a millionaire.

What is the definition of a reseller?

Resellers and dropshippers are actually almost the same, but if we look deeper, we will find gaps in the differences. In a reseller system, usually there must be an initial purchase of the product, while dropshipping does not.

In dropshipping, we don't need to think about stock, when we have an order, we just have to send the buyer's address to the manufacturer or supplier. Packing to delivery is the supplier's business. While in the reseller system, it is usually required to have stock.

How Resellers Work

From the understanding above, we can get a little picture of the world of resellers or what we can call resale. Basically, companies or suppliers can directly sell their products to consumers, but due to several reasons, such as expensive promotion costs, limited market share, and a lack of human resources, companies have to implement this system.

By recruiting people to help sell their products, it will greatly benefit the company in increasing company turnover. What's more, the company is also helped in terms of promotion and sales expenses, without having to pay salaries to employees, there are already people selling their products.

Profits are not only obtained by suppliers, those who help sell them also benefit because without the need to think about production, they can do business and make a profit through the difference between the buying price and the selling price.

So how it works is as follows:

     Supplier owns goods > Goods purchased by resellers > Resell at a higher price > Get Cash.
After officially becoming a reseller member, several distributors usually allow their resellers to use the dropship system. 
Where we don't need to buy directly, we only offer products at the price we want. When there are sales, we convey them to the producers and we pay them.
Manufacturers will send goods according to our requests, this method is often referred to as "DROPSHIP".

Can it be sold at a higher selling price? My point here is that it is higher than the purchase price at the supplier, because usually suppliers provide special prices for resellers.

Advantages and disadvantages

Reselling other people's products has a lot of benefits, even if managed seriously it can be a big income for us. The following are some of the advantages we can get:

  •      No need to have your own product.
  •      No large capital is required, you can start by buying products in small quantities.
  •      Easy in stock management, even some companies provide convenience with the dropship system (without having to buy stock).
  •      Can develop business through several suppliers at once.
  •      Get a lower price.
  •      Opportunity to get big profits if managed seriously.
  •      Can brand our own business name, and when we grow up we can start producing our own products at any time.

disadvantages :

  •      If you start from "zero" you need a strategy for market penetration, especially if you have many competitors with fellow resellers.
  •      You have to be smart to find gaps that other resellers haven't entered. 

Interested in Becoming a Reseller?

This month we are opening book reseller registration, our main target is students, lecturers or those of you who want to find a side job. Opportunities are still wide open because not many are playing there.

More or less the above is an article about the world of resellers starting from understanding, how it works, the advantages and disadvantages and how to start being a reseller. Hope it is useful !

FAQ Regarding Resellers

What is a Reseller?

Resellers are business people or people who resell products or services from distributors, manufacturers or suppliers who have agreed to cooperate with each other.

What is the difference between reseller and dropship?

The difference between the two is not too far, but how it works has been explained in this article. If you want to understand the difference, it has been summarized in 8 differences between reseller and dropship.

Open reseller mean?

Open reseller means that a store or manufacturer that has products opens opportunities for other people to sell their products, thereby opening up opportunities to become resellers.

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