Whether it’s buying and selling old video games at garage sales, or sourcing products for sale online, the reselling model is used by a variety of people as an effective way of making money. However, if you’re looking to earn more than just a quick buck, retailing might be a better option.
A retailer purchases products from a distributor or wholesaler and then sells them to the end consumer, usually at more than the original price. This can be done by online marketplaces like eBay or Amazon or traditional brick-and-mortar shops. Retailers usually offer unique value-added service, such as customization, and technical support.
Resellers purchase products, then resell them at a discount to the end user and often sell the product for less than the original cost. Resellers can be found in all industries and are not always as oriented towards customers as retailers. They can also rebrand items or repackage them using private labels and sell them directly to retailers or consumers.
Resellers are more focused on reselling products to other businesses, rather than retailers. This is particularly useful for companies with less capital to invest in large quantities of merchandise. Retailers are able to provide a variety of products and services all in one location, whereas resellers typically focus on reselling specific products to customers.