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Dealer, reseller, distributor, what is the difference

The three words get used as if they mean the same thing. To a manufacturer they do not, and using the wrong one describes a different business from the one you run.

Dealer

An authorized seller. You are named by the brand, you buy at dealer cost, you sell at or above the minimum advertised price. Support, warranty handling and product data come from the brand. This is what most online stores want.

Reseller

A broader term. A reseller buys product and resells it, sometimes without any formal authorization. Without authorization you have no pricing protection, no warranty backing and no guarantee of supply, and the brand can ask marketplaces to remove your listings.

Distributor

A distributor buys in volume, holds stock, and sells on to dealers rather than to the public. It requires warehousing and capital, and it usually comes with revenue commitments.

Which one fits an online store

If you run an online store selling to the public, a dealer is the one that fits. It gives you authorized status, dealer cost and protected pricing without holding inventory.

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