Differences between a Seller,Reseller and Retailer.

Dear All,

Any product before it reaches the end consumer passes through a distribution chain.

Distribution chain which links the company which manufactures a product with the end consumers who consume that product.

Distribution chain is made of different channel partners (CP) who play their own roles to further push the product down the distribution chain for a commission.

Some of these terms overlap each other and can be used interchangeably e. g. A company which produces a product and markets it to it's distributors is a seller.

A super stockist or distributor of company whom the company sells can be referred to as re-seller of the company.

A distributor in turn sells company's products or services through a chain of wholesalers or retailers. So in this sense distributor can be 

referred to as a re-seller.

Now wholesalers who purchase products from a distributor for re-selling further to retailers or consumers too can be called re-sellers as they too sell products down the distribution chain.

Without beating around the bush let us first understand these terms in light of above mentioned context.

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Seller : 

Company which manufactures the products and sells it to its distributors.

A Salesperson is also a seller by virtue of his/her act of selling.

Re-seller=

Re-seller is a person or group of persons or a business entity which purchases products from company distributors in bulk, stores them and re sells these products to other retailers on profit.

They help companies fill gaps in their distribution as it is not possible for companies to reach all the shops or shops in the area being serviced by the companies.

Now let us proceed to discuss what a retailer does:

Retailer=

A retailer is a person or a couple of persons or a business entity which purchases products directly from distributor or wholesaler and sells these products directly to their customers who come to their business premises to buy products from them.

Retailer is the last link in distribution chain and it is in direct touch with end consumer of product or service.

S/he is also referred to as Shop or outlet. It sells product or service to end consumer for a margin from company.

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Happy Living !

Mritunjaya Malhan

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