Types of Resellers and Reseller Pros and Cons

What’s a unique business trend that you should start considering? The reselling business!

Although the reselling business is a fantastic business choice, you must learn more about types of resellers in order to decide if it is a good option for earning online in Pakistan for you.

We'll go through some of the many types of resellers in this blog post, along with the advantages and disadvantages of becoming a reseller.

The Definition of a Reseller 

A specific kind of online seller known as a reseller does not produce or manufacture the goods and services that they sell to their customers.

A reseller purchases goods with the intention of reselling them for a profit later. They essentially function as a "middle man" between the manufacturer (or distributor) and the customers.

Resellers frequently earn discounts because they buy products and services in bulk from producers. Then, via the process of resale, resellers establish a connection between producers and customers, delivering goods and services to customers.

The reseller has the option of rebranding (or at least repackaging) the goods or choosing to ship straight from the producer to the clients without keeping any inventory.

These experts assist companies in saving time, money, and effort by reducing the cost of marketing and selling their products.

Types of Resellers 

There are a few different categories and types of resellers and each one has a separate role in the supply chain. 

Type 1: Wholesalers 

A wholesaler is often a large corporation that offers to purchase a company's goods and resell them to retail establishments.

Wholesalers can specialise in a wide range of items and frequently run their businesses out of warehouses.

Wholesalers, however, hardly ever deal with customers directly.

Type 2: Power Resellers 

Power resellers have the widest range of customization options.

The processes of a power reseller and a supplier are quite similar. Power resellers buy resources in bulk from a service provider, for example, traffic, disc space, IP addresses, then bundle and charge for them as needed.

Within the restrictions set by a supplier, a power reseller can distribute resources to clients. Power distributors design their own service plans and template sets. The reseller subscription in Billing is where all dealings with a provider are made.

For their own use, providers can design power resellers. For instance, if the provider owns several brands, a different power reseller is made for each of those brands.

Type 3: Distributor 

The distributor is a company that purchases goods from the producer and then sells them to a different supply chain participant.

Distributors typically sell to wholesalers, however on rare occasions they may also sell to retailers and even consumers directly.

Although distributors and wholesalers carry out comparable tasks, the distributor has a closer relationship with the producer than the wholesaler does.

Distributors frequently participate in the marketing and advertising of a company's goods and may have exclusive purchasing relationships with manufacturers. For instance, a distributor may arrange product demonstrations, offer free samples, or offer discounts to entice customers.

Type 4: Value Added Resellers 

The simplest way to begin reselling is with this readymade reselling approach.

After enrolling, value added resellers can start marketing service plans that the supplier has given them the authority to offer.

Plans that are delegated already have their pricing, descriptions, and refund parameters defined.

Value added resellers are only permitted to alter pricing, descriptions, and refund settings; they are not permitted to change the structure of plans (i.e., add, customise, or delete subscription periods or resources).

Value added resellers make money on the difference between the wholesale price (paid by the service provider) and the retail price they configure by buying plans and resources as they are utilised by their clients.

Customers pay the reseller their subscription costs when they purchase a subscription from them. The reseller then pays the supplier the money in accordance with the agreed-upon pricing. The price variation benefits resellers.

The services that providers offer to their resellers are frequently discounted. This implies that the reseller can provide service plans at a lower price than the provider, resulting in an increase in sales.

Within the same reseller account, both reselling models are usable. The delegated plans may be resold with a bulk purchase of resources (referred to as a "Power Pack") from the vendor and the creation of new plans for sale by the reseller.

Type 5: Retailers 

The wholesaler or distributor sells goods to the retailer, who then purchases them and sells them in small amounts to clients.

As a result, the merchant serves as the final link in the sales chain before the client.

Since their primary objective is to delight customers by offering high-quality goods and services, retailers, in their capacity as resellers, guarantee the availability of a range of items at reasonable costs.

Earning Online In Pakistan through Reselling

There is a big demand for earning online in Pakistan through reselling, as there are many people who want to make some extra money. However, it's important to be aware of the risks involved before starting this kind of business. There are several scams out there that try to take advantage of naive sellers, and it's often very difficult to recover from such an experience.

To Help you on your path to earning online in Pakistan , we've compiled a list of some of the major pros and cons of opting for reselling as a mode of business.

Pros of Being a Reseller 

The question arises why would you want to be a reseller in the first place? Here are some of the benefits that you can gain from becoming a reseller. 

Low Initial Investment 

The minimal initial cost is one of the key benefits of becoming a reseller.

Running a value added reseller business might be a wonderful option if you're seeking for new business options that demand little capital.

Both product development and inventory management are not your responsibilities. In fact, with dropshipping, you don't even need to hold onto inventory. You are allowed to run a completely online-based business.

Reselling things that are already successful on the market is your primary responsibility. Additionally, you only pay the provider for the goods that the client has ordered.

In order to recoup their costs associated with packaging and transporting goods, drop shippers also charge a very little fee. As a result, you only need a small initial money to start your value added reseller business. 

A reseller hosting account is all that is actually needed to get started as a reseller.

Thousands of individuals have started their reselling business with Markaz. The app allows them to earn upwards of Rs. 45000 per month, with zero investment requirement, making it an attractive mode of engaging in online business in Pakistan for those without extra money to spend

Thousands of individuals have started their reselling business with the Markaz app allowing them to earn upwards of Rs. 45000 per month, with zero investment requirement. 

Download the app today and join the community. 

Scalability 

Reselling is one of the few business concepts that allows you to grow your enterprise. This is a significant benefit that places it among one of the best online business ideas in Pakistan.

A reseller is able to satisfy unexpectedly big orders and expand their business without suffering any substantial setbacks because manufacturing is managed by other businesses.

Reselling with value added offers a great chance to boost upselling. Once you've established a connection with a reputable supplier, all you need to do is choose the good or service to go along with what your provider is providing.

Prospective customers are more easily persuaded to buy by merely adding value to a current product.

You can sell a variety of goods if you operate as a reseller.

You may test your extended plan using various techniques to determine whether it is effective because you don't need to spend a lot on bulk inventory to ensure ample items selection.

The flexibility and profitability of reselling can make it easy to expand the business quickly, especially if you use online marketing and sales channels. You might be able to grow your business rapidly and affordably if you have a solid grasp of the industry and relationships with your suppliers.

Flexibility 

Reselling gives you some job freedom because it lets you select from a variety of manufacturers and goods to sell.

If you are a small reseller with a limited inventory, you could have the flexibility to switch items rapidly to increase earnings and lower risk if demand for your product changes.

You don't have to limit your sales as a value added reseller to a single class of goods or services. You don't have to limit your sales to a single product category.

With changing market conditions, you may always increase the variety of your products. To stay up with market needs, merely establish business relationships with new suppliers. You may interact with new suppliers and act rapidly in response to shifting customer demands.

All you need to establish yourself as a reseller is an internet presence; you don't even need a physical location. You may thus choose your own working hours and location.

The Markaz app allows resellers the opportunity to run their reselling business from the comfort of their own home. This allows individuals from various backgrounds and schedules to run a reselling business how it suits them. 

In fact, in Pakistan, just 20% of the workforce is made up of women. Markaz enables Pakistani women to participate in the workforce and the economy by having resellers who are at least 50% female.

Cons of Becoming a Reseller 

All good things must have their drawbacks. Becoming a reseller is not always a walk in the park. Here are some of the things that you should keep in mind when starting a reselling business. 

Hidden Costs 

The majority of individuals, frequently grossly underestimate the expense of advertising. Attracting, involving, and keeping consumers are the three pillars of reselling.

When competing with other resellers who are selling the same items for about the same pricing, advertising becomes crucial.

You must heavily rely on marketing if you can't set yourself apart from rivals through your product offering or costs.

Markaz does away with all this by allowing you to sell to your already established social circles via Facebook, WhatsApp, Instagram, etc. 

Markaz allows you to leverage your network and establish a reselling business with the people you are already connected to. Therefore, you do not need to spend excessively on advertising. In fact, sharing products with your network and contacts has been made very simple with the Markaz app, all it takes is a click of a button. 

Download the Markaz app today and see for yourself!

No Control Over the Product 

Additionally, you have no control over the caliber of the goods you sell to customers. However, if clients receive faulty or subpar goods, you bear full responsibility.

Since you require storage space for your product, at least while it is travelling from the producer to the clients, if you are not only engaged in drop shipping, your overhead expenses will be substantially greater.

Markaz sources the best quality products for the lowest prices by sourcing at wholesale prices from the top manufacturers and suppliers in Pakistan. Markaz ensures that only the top, best quality products are listed on their app, therefore you can rest assured that your business will not suffer due to a lack of control over the product. 

Furthermore, in the highly unlikely event of quality issues, Markaz guarantees any quality related returns and refunds so that you don’t have to. 

Time-Intensive Business 

Reselling takes a lot of time, which is another drawback.

You must place orders with manufacturers or suppliers for each sale, then send items to customers.

You need to keep up solid contacts with your suppliers, manufacturers, and clients.

Client complaints must be handled on both the client's end and the supplier end.

Markaz takes everything off your shoulders by handling all deliveries and cash collection. Markaz partners with leading logistics partners such as Leopards, Trax, and MNP for quick and efficient deliveries in over 1200 cities. 

By providing delivery and cash on delivery as payment alternatives, Markaz is able to break down the barrier between the customer and seller.

Customers are more likely to trust your business since Markaz provides delivery to  and receives payment upon delivery. Additionally, within 48 to 72 hours, the money will be put into your EasyPaisa and JazzCash accounts.

Frequently Asked Questions

What is the easiest way to become a reseller in Pakistan ?

Given how popular reselling is expected to get, now is the perfect time to hop on the bandwagon. The simplest way of becoming a reseller in Pakistan is through online platforms. Finding customers and promoting products the old fashioned way can be not only time consuming but expensive., so it's best to rely on the wide ranging online tools available today.

So the best advice those interested in becoming a reseller would be to get an internet connection, a working mobile or pc and then partner with a well known reselling app or platform.

What is the best reselling app in Pakistan?

If you're looking for reselling apps in Pakistan to start your journey as a topnotch reseller the Markaz App is your best option!

Markaz App offers users the ability to sell products online or within their social circle. We use technology and data to provide the best experience possible, which empowers our users to achieve more. Our marketplace already hosts sellers from a variety of backgrounds, making the Markaz app one of the most inclusive reselling apps in Pakistan

What are some other great online Business Ideas In Pakistan ?

Ecommerce in the region is booming, meaning there are currently a number of fantastic online business ideas in Pakistan for those interested.

Some of the best online business ideas in Pakistan right now are:

-Online Tutoring: For students who need help with subjects outside their regular school curriculum, an online tutoring service can be a great option. This type of business can be profitable due to high demand and low competition.

- Social Media Management Services: A social media management service lets businesses manage all aspects of their social media accounts from one place. This includes scheduling posts, analyzing performance metrics, and generating leads through marketing campaigns on various platforms.

- Home Based Businesses: If you have access to a computer and internet connection at home, opening up an online store or doing web design may be a good idea for you. Building an eCommerce website or creating a simple blog can both be profitable ventures if done correctly."