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Reseller Agreement: A legal agreement between a supplier or manufacturer and a reseller defining the regulations and conditions upon which the reseller may sell the manufacturer's products or services.
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.
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.
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.
Contents Defining the scope of the reseller agreement. Outlining the duration of the agreement. Outlining the rights and obligations of the reseller and the customer. Outlining the scope of the reseller's services. Outlining any exclusions. Setting out payment terms. Stating the payment terms.
A reseller is generally less closely associated with the manufacturer, and sometimes does not have a direct relationship with the manufacturer as it generally buys products from distributors. Resellers usually do not keep inventory of product or provide after-sale services.
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.
Reseller's obligations ? Responsibilities of the reseller, such as marketing efforts, sales targets, customer support, and compliance with the principal's policies.