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A VAR agreement is a governing law that increases the value of a product and enhances the customer experience by maximizing complementary aspects of both companies. A value-added reseller agreement delineates reseller rights and specifies the conditions required for performing (for either party).
added reseller (VAR) is a company that resells software, hardware and other products and services that provide value beyond the original order fulfillment. VARs package and customize thirdparty products in an effort to add value and resell them with additional offerings bundled in.
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.
added reseller can increase its potential for repeat business by virtue of the added value they provide. A VAR can also act as the single point of customer servicecentric contact for customers of certain products and solutions.
Examples of common value-added resellers (also known as VARs) are computer retailers and service companies, automobile dealerships, and furniture stores.
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.
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.