Kansas Value Added Reseller Distribution Agreement
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How to fill out Value Added Reseller Distribution Agreement?
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FAQ
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.
The VAR buys products from the manufacturer and then resells them to its customers, adding value by offering additional services, support, and customization. For example, a software company provides a customer relationship management (CRM) software program for travel agencies.
A reseller agreement typically refers to an arrangement between someone supplying goods (often known as the wholesaler) and another party selling the goods to a third party or the general public (the reseller). Under a reseller agreement, the reseller agrees to sell the products on behalf of the wholesaler.
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.
What is a Resale Agreement? A resale agreement is a legal contract that is typically used between two businesses where one business decides to resell the products or services of the other business to its client base. This type of arrangement is commonly seen between software companies and services companies.
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.
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.