Reseller

Definition

A reseller is a business or individual that purchases products from a supplier or manufacturer and sells them to customers for a profit.

Explanation

In the dropshipping industry, a reseller typically refers to the online store owner who markets and sells products without manufacturing them. The reseller focuses on product selection, marketing, pricing, and customer service, while suppliers handle inventory and fulfillment.

Unlike traditional resellers who buy and store inventory, dropshipping resellers usually do not hold stock. Instead, orders are forwarded to a supplier, who ships the product directly to the customer.

Key responsibilities of a reseller in dropshipping include:

• Choosing products to sell
• Setting retail prices and promotions
• Managing the online store
• Running marketing campaigns
• Handling customer support

This model allows resellers to start an e-commerce business with relatively low upfront investment.

Example

An online store owner sells pet grooming tools:

• The reseller lists a pet hair remover on their website for $24.99.
• A customer places an order on the store.
• The reseller sends the order to a supplier that charges $12 for the product.
• The supplier ships the item directly to the customer.

The reseller earns the difference between the selling price and the supplier cost (minus fees and marketing expenses).

Key Takeaway

In dropshipping, the reseller is the business that connects suppliers with end customers by marketing and selling products through an online store.