Suppliers often operate reseller programs as a formal way to provide product discounts and other amenities such as deal registration and end-of-chain discounts for channel partners. A reseller is a kind of chain partner that acts as an intermediary between companies that manufacture, distribute or provide IT products or services and end customers that may be businesses or consumers. Order processing has played an important role at the retailer: the customer goes to a reseller to simplify the ordering process and lighten the supply and order management tasks. It may be accompanied by a consignment agreement (franchising, distribution or OEM). The goods are stored on the premises of the distributor or in the premises of a third party available to the distributor, but remain the property of the exporter. An added value provider (VAR) is a company that adds features or services to an existing product and then resells it (usually to end-users) as an integrated product or a complete “key” solution. This practice often takes place in the electronics or information technology sectors, where, for example. B, a var can pool a software application with supplied hardware. [Citation required] A reseller added to the value may increase its potential for repeating operations because of the added value it offers. A VAR can also serve as a central point of contact for customers of certain products and solutions. A VAR is often better positioned to understand customer challenges and offer the kind of know-how that ensures customer satisfaction. A reseller is a business or individual (trader) who buys goods or services with the intention of selling them rather than consuming or using them. This usually happens for profit (but could be resold at a loss).
The telecommunications sector is one example, where companies buy excess transportation capacity or call hours from other airlines and resell them to smaller carriers. Resellers are also active in the field of Internet connectivity. Here, a reseller, sometimes called a virtual internet service provider (VISP), offers Internet services from another ISP, but resells them under his own brand. In the software industry, software resellers offer customers access to multiple products for a simplified supply. According to Gartner, software resellers include companies such as CDW, Insight, SHI, Softchoice and SoftwareONE. A distribution contract (also known as a sales contract or distribution contract) is a legal agreement between one party and another to ensure the marketing of a product. In addition, a retailer has little or no control over the quality or characteristics of its product and must rely on its manufacturer to adapt to changing customer requirements. This term is often used in the computer industry, where a company buys computer components and builds (for example.B.) a fully functional PC system, normally suitable for a specific task (e.g.B. non-linear video editing). The company thus has an added value above the cost of each it component. Customers would purchase the system from the dealer if they do not have the time or experience to assemble the system themselves.
[Citation required] Tandy Corporation was an example of a company selling products via VARs using re-labeled versions of its computers.   This is the case, for example, when individuals or companies act as agents for ICANN accredited registrars.