As we know that reselling and distributing business are the top businesses in the world now, and the drop shipping business model is become the hottest topic nowadays.

There are so many people may ask ‘what is the differences between resellers and distributors’. Resellers means companies or individuals who purchases merchandises and resell it to end-customers, they can make profits from the price differences.

Distributors are the entity between products and supply chain, it performs the same functions and roles as wholesalers in the market. Moreover, drop shipping is one of the most popular business model around the world, and it is a business model that welcome resellers and distributors.

In this post, I’ll explain what is the differences between them, and give some recommendation about how to make a selection.

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Differences between resellers and distributors

As the definition shows in the previous part, it can clearly find that there are some differences between resellers and distributor.

In the following table below, it shows the some pros and cons of resellers and distributors. It is believe that both of resellers and distributors are have its huge spaces to make profits because of the large size of international market.

Moreover, both of them are not bound by suppliers, which means most of them can easily switch products that are selling, and they can also cooperating with multiple suppliers to make sure they are freely to select products that they really want to sell. However, as a distributor in the dropship handbags business, they can implement its planned sales but not selling in the dark.

Resellers do not have the spaces to set up a sales plan because they need to purchase a lot of merchandises as inventories, and then randomly selling it to end-customers. In addition, distributors are much more services oriented, which means distributors are stay focus on not only selling merchandises, but also providing services. In contrast, resellers are stay much more focus on selling.

In addition, both of resellers and distributors are have the lower profit margins, which should make them gain fewer profits from the drop shipping business. Furthermore, resellers should have higher inventory risk because they are used to purchase a bunch of inventories.

In contrast, the drop shipping business model allows distributors do not need to carry inventories at all, and it should be helpful for distributors to have more funds for investment. It can also clearly understand that resellers are have less commitment than distributors, and distribution should be the great strategy for those people without resources or even do not built up a actual company yet.

As the description above, it can clearly find that reseller is quite similar to distributor in the drop shipping business. However, there are still have some differences between them.

On one hand, it is believed that distributors are much more fits for those individuals or companies who are beginners to international business. Moreover, join distributors can help them to make higher sales, which also can help them to get more services such as logistic, product selection and so on.

On the other hand, resellers are fits for those established companies with several lines of products. It is helpful for companies to spread products among countries and regions in the world.

In conclusion, it is believe that both resellers and distributors can easily join the drop shipping platform to start their drop shipping in the world. Moreover, distributors should be the better choices for people who wants to start dropship baby clothes business.

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