All about Resellers, Dealers, and Partners in B2B Ecommerce

In B2B eCommerce, resellers, dealers, and partners play crucial roles in expanding business reach and driving sales. Each entity brings distinct value, contributing to a more robust supply chain and offering customers greater access to products and services. Resellers typically purchase products in bulk from manufacturers or distributors and sell them to end customers. At the same time, dealers often have exclusive agreements with suppliers to sell certain products within specific territories. 

Partners, on the other hand, collaborate strategically with businesses to provide complementary services, technologies, or distribution channels. Understanding the differences between these groups and their impact on business operations is key to building successful relationships and leveraging the full potential of B2B eCommerce. 

In this blog, we'll explore the roles and benefits of each in detail.

Resellers

Some businesses purchase products and services, but they don't consume them. Instead, they resell the services to others. The ecommerce industry includes various resellers who are affiliate marketers. Retailers can also be considered resellers because they purchase goods for end customers. Even wholesalers are resellers because retailers buy from them.

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A reseller resales goods at higher prices than they purchased to gain profits. The reselling chain goes through a rise in price from manufacturer to retailer and the end consumer. Each person in the reselling chain makes some profit by reselling goods or services. Sometimes, the prices are increased by adding value through repackaging or combining similar products. Retailers are usually the most common type of resellers. A reseller is often a registered business or individual. They want to increase their revenue through each resale.

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The retail chain often involves a distribution process. It means that merchants buy goods from wholesalers. They directly sell them to the end consumers. They wish to make a significant profit margin on each resale. Therefore, they modify the prices of commodities.

Resellers sell at a price close to the manufacturer's retail price. Some resellers add unmatched value to their products. It can be done in the following ways:

• Product repackaging
• Creating a realistic price structure
• Working with fast carriers

Dealers

Dealers are individuals or businesses who purchase and sell securities through brokers or personal accounts. They are responsible for creating liquidity in the industry. They are also responsible for enhancing long-term growth opportunities. Dealers also offer services to investors.

They are usually considered the markers of the market. They create the opportunity to pose and bid quotes against security prices. Dealers are responsible for executing customers' orders.

They are highly prominent in the securities market and have important roles to fulfill. They have to find profit between the ask and bid prices. Even though dealers play important roles in the market, they should refrain from doing business with clients.

Dealers also need help to make transactions between two or more parties. Dealers have different responsibilities than traders. A dealer purchases or sells securities for the business. Therefore, they make up a large part of business activities. However, traders buy and sell securities for personal accounts. Therefore, they don't make up a part of business activities.

Partners

Partners can be considered as an extension of any sales team. They manage, resell, and deliver products to help businesses reach the market faster. The source of income for partners is referral fees. They can also generate profits by offering complimentary services like customer support, training, and consulting.

The health of a channel partnership in a B2B e-commerce industry can be measured using ecosystem-qualified leads. A partnership can fuel growth and generate new revenue streams when done correctly. Channel partnerships are not new in the tech world. In the era of licensed software during the 70s and 80s, veterans like IBM and Microsoft leveraged the power of partnerships.

Some well-known channel partner programs are as follows:

• The Managed Services Channel Program involves the best practices for channel partner services. It ensures compliance with legalities and establishes the validity of the programs.
• Hiring a Channel Program: Partners dealing with asset management for a limited period will benefit from this program. It included combined technologies from vendors, manufacturers, and data centers.‍

How to Choose the Right Resellers, Dealers, and Partners for Your B2B Business

Choosing the right resellers, dealers, and partners for your B2B business is essential to maximize growth, improve sales, and ensure that your products or services reach the target market efficiently. The right business collaborators can amplify your brand, expand your market reach, and ensure a seamless customer experience. Here are key considerations for selecting the right partners for your B2B business:

1. Evaluate Their Expertise and Market Knowledge

Look for resellers, dealers, and partners who possess in-depth knowledge of your industry, product, or service. Their understanding of the market will help them position your products effectively and anticipate customer needs. Evaluate their experience in the sector and track record of success.

2. Assess Alignment with Your Business Values and Goals

Ensure that potential partners share similar business values and align with your company's long-term goals. This ensures mutual trust and a strong partnership, with both sides working toward a common objective. A well-aligned partnership will promote transparency, cooperation, and success.

3. Consider Their Existing Network and Reach

A strong reseller, dealer, or partner network can dramatically expand your business's reach. Look for partners who have access to your target audience and established connections in regions or markets where you aim to grow. A wide network helps in faster market penetration and broader brand visibility.

4. Evaluate Their Financial Stability

Financial stability is a critical factor when choosing a partner. A financially secure reseller or dealer will ensure timely payments and fulfill their obligations. This reduces risks related to delayed payments or defaults that could harm your business operations.

5. Check Reputation and Customer Service

Partner with resellers, dealers, or partners who are well-regarded in the industry and have a solid reputation for customer service. Their ability to maintain strong customer relationships and provide excellent service will reflect positively on your brand. Strong customer service is essential for maintaining a positive brand image.

6. Consider Technology and Infrastructure Compatibility

In B2B ecommerce, your resellers, dealers, or partners must have the right technology and infrastructure to handle transactions, order fulfillment, and customer management efficiently. Ensure that their ecommerce platforms, communication channels, and CRM tools are compatible with your own systems.

7. Negotiate Clear Terms and Expectations

Before entering into any partnership, define the terms clearly, including sales targets, marketing efforts, financial arrangements, and performance metrics. Setting expectations upfront helps avoid misunderstandings and ensures smooth collaboration.

FAQs

1. How Can Channel Partnership Improve Brand Awareness?

Partnering with businesses with well-established brand values makes your business familiar to more people. See whether your partner can talk about you in their events and promotions. Their endorsements can help you elevate your brand image to potential customers.

2. What Are the Requirements for Making a Channel Partnership Work?

Channel partnerships are not just between businesses. They connect people who work for the businesses. It requires patience and effort to set up a channel partnership. After that, you need trust, data access, and collaboration to maintain a long-term relationship with channel partners.

3. What Is the Difference Between Wholesalers and Retailers?

Wholesalers and retailers are two key players in the supply chain. While both of them are resellers, there are some differences in how they work. Wholesalers directly purchase products from manufacturers or suppliers. They can save expenses by buying products in bulk. Retailers buy products from wholesalers at a higher price than what wholesalers pay. Retailers further increase the price of products to earn profits and sell them to end customers.

4. What Is Meant by a Dealership Margin?

A dealership margin is the profit margin earned by dealers. The profit comes from the difference between the invoice and sticker prices.

5. Who Is a Referral Partner?

A referral partner can be anyone from sales representatives to customers. Referral partners increase sales by referring customers through different channels.

6. How Do Resellers and Dealers Impact Sales Growth?

Resellers and dealers play a critical role in expanding the reach of your product. By providing access to local markets, specific industry segments, or international territories, they enable businesses to sell their products more widely.