Examples of Reseller Organizations

Manufacturers sell most of their products through at least one of the various types of reseller organizations. These organizations act as intermediaries between manufacturers and customers and help manufacturers get their products into consumer’s hands by providing marketing, transportation, pricing and customer service, according to OpenPR. Reseller organizations also allow manufacturers to move large amounts of inventory at once, decreasing the chances of holding on to the unsellable inventory.

Retail Organizations

Most resellers are retail organizations. These include grocery stores, department stores and specialty stores, such as home improvement or pet supply stores. There are many different types of retailers, from Wal-Mart to Macy's to the boutique on Main Street. Retail stores purchase goods from the manufacturer at the base price, called the wholesale price, and sell the items at a higher amount, called the retail price, for a profit.


Online Resellers

Online resellers work much like retail stores, except they usually do not have traditional brick-and-mortar locations. Resellers that conduct business exclusively online, such as Amazon, Etsy and eBay, do not incur the high overhead expenses of retail locations. These usually include sales staff, utilities, rent and loss protection.


Mail-Order Resellers

Mail-order resellers offer customers catalogs that list the merchandise they have for sale. Like retailers, mail-order organizations purchase products wholesale and sell them at a higher price. And, similar to online resellers, mail-order companies do not have physical locations. SkyMall was a popular mail-order reseller that stocks their catalogs on commercial flights until recently. With the internet so common, physical mail-order catalogs are dwindling.


Reselling via Distributors

Distributors have agreements with manufacturers to sell products or services to retail, online and mail-order organizations, as well as direct to customers. Some of the biggest distributors in the world include Dhgate, Chinabrands and AliExpress, according to Chinabrands. Some distributors only work with noncompeting manufacturers. Other distributors are sanctioned by manufacturing companies as official selling partners and handle all promotion, advertisement and sales activities. Distributors that sell directly to consumers take care of customer needs, including exchanges, returns and repair service.