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Under direct selling, the manufacturer sells its products to online consumers directly. Under reselling, the manufacturer sells its product through an e-tailer. Under agency selling, the manufacturer sells its products to consumers through an online agent's website and pays the agent a commission fee.
While similar to distribution agreements, reseller agreements differ in the way the product reaches the consumer. Unlike distributors, resellers don't purchase and store your product, ready to sell. Instead, they act as a middleman, taking a commission when they sell your product to a customer.
Essentially, in a model, retailers sell to consumers, wholesalers sell to retailers, and distributors sell to wholesalers. Retailers buy small quantities of select items from a distributor or wholesaler. Wholesalers buy a large quantity and variety of products directly from the distributor.
A retailer owns an established business, either a brick-and-mortar store or an online store, and buys products and sells them directly to the end user. A reseller, on the other hand, is often the ?middle man.? Resellers buy stock and sell products however they see fit.
Distributors consist of order takers, and generally lack real product knowledge. On the other hand, there are VADs, which provide a broad range of products, stock inventory, operate their own warehouse(s), supply credit to re-sellers, and have dedicated sales teams trained in understanding your products.
Similar to a distributor, a reseller sells your products to customers. However, the main difference between a distributor and reseller is the lack of warehousing. Resellers won't purchase or hold your inventory.
Below is a basic distribution agreement checklist to help you get started: Names and addresses of both parties. Sale terms and conditions. Contract effective dates. Marketing and intellectual property rights. Defects and returns provisions. Severance terms. Returned goods credits and costs. Exclusivity from competing products.
Reseller Agreements should specify the details of the product or service delivery. Both parties should have a mutual understanding of the delivery terms, including the timelines, delivery responsibilities, delivery location, and method.