Mississippi Value Added Reseller Distribution Agreement
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How to fill out Value Added Reseller Distribution Agreement?
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FAQ
As the name suggests, a Value Added Distributor (VAD) offers supplementary services & solutions that deliver extra value to clients in addition to the pick, pack & ship services for the products they sell. In contrast to distributors, VADs generally offer additional support besides delivering the product or service.
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.
Value-added resellers include technology service companies, auto dealerships and even furniture companies. Technology service companies often offer a range of value-added products or services, such as extended warranties, service contracts, supplemental hardware, software, and installation and setup services.
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.
Value-added resellers exist because they represent an important distribution channel for manufacturers, particularly those in the IT sector. A value-added reseller takes a core hardware or software product or an entire system and customizes a package of additional system add-ons for a customer.
VAR vs. Value-added resellers use OEM products to build a finished product. VARs can purchase the OEM parts and, once purchased, market those parts under the VAR's brand name. VARs order a specific product from the OEM, which can be anything technical or non-technical in nature.
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.
added reseller (VAR) is an organization that is usually part of a sales channel for an original equipment manufacturer (OEM).