The cycle of manufacturing products and purchasing them does not only occur between the seller and the buyer. In the industry, not every produced good goes directly to the customers. Sometimes, the process involves resellers. These are people who manufacturers work with to expand the reach of their business. To come up with a mutually beneficial vendor-reseller arrangement, there should be a written reseller agreement. This document helps streamline the business process between the two parties, especially when it involves larger transactions. Learn more about it in this short guide.

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What Is a Reseller Agreement?

A reseller agreement or reseller contract is a legally binding document that establishes a clear relationship between a supplier of goods and a reseller. The reseller is the party who sells the products to the third party: the general public. As both parties sign the product reseller agreement, it signifies that the reseller agrees to sell the product on the wholesaler’s or supplier’s behalf. Moreover, the party who resales have to market, distribute, and lease the products previously agreed. Common examples of this type of document include food reseller agreement, standard reseller agreement, and authorized reseller agreement.

How to Write a Reseller Agreement

Having a reseller agreement template would make the writing process easier for you. Other than that, consulting a lawyer will also guarantee you that everything stipulated in your contract complies with the industry’s standards. But if you want to draft the agreement yourself, make sure to tick these items off in your reseller agreement checklist:

1. Write the Opening Paragraph

Like any other type of agreement, the first section of a reseller agreement should be the essential information in relation to the transaction. In here, write down the complete names (or company names) of the parties involved, their address, and the date of the agreement’s creation.

2. Indicate the Validity

Every written agreement is only valid for a specific timeframe. It expires as the transaction ends. And it is up to both parties whether they will renew the arrangement or end it. For this reason, you have to indicate the duration of the agreement. See to it that you mention the starting date and end date of the document’s validity.

3. Specify the Products

Another vital element of a reseller agreement is the product involved in the transaction. It means that you have to specify and describe what product will the vendor render to the reseller. It is also important to note how will these product orders be delivered and shipped to the reseller.

4. Include the Payment Terms

Aside from the product description and the number of products delivered, you must also indicate the prices for each. In most cases, vendors give discounts to resellers so that they can still resell the products at a reasonable price. This section should also state other costs the reseller will pay, such as the expenses for shipment and all additional charges. Moreover, don’t forget to mention the deadline and the payment methods available.

5. Provide a Clause for Termination

Although no business or individual wants to experience unfavorable circumstances that may lead to the termination of the agreement, providing a clause that discusses the terms of termination remain significant. This is the part where you will state what the grounds for the termination of the contract are. Apart from that, it is also essential to mention the resolution process, should disputes arise. Doing so helps avoid the escalation of the situation.

FAQs

What is the difference between a distributor and a reseller?

To put it simply, distributors and manufacturers work more closely with each other than the resellers. The distributors buy goods directly from the manufacturer and sell them to either resellers or end-users. On the other hand, most resellers get their supplies from these distributors so they can market it to the consumers.

What is a reseller discount?

A reseller discount is an amount deducted from the usual cost of the products the manufacturers provide. Typically, resellers would ask for a 25% – 50% discount, depending on the number of goods they buy. This amount enables them to sell the products to the end-users at the suggested price range and still get enough money for themselves.

How can I be a successful reseller?

You can gain success while reselling if you keep in mind these following tips:

  1. Keep a record of the products you’ve sold.
  2. Be consistent.
  3. Use social media for marketing your products.
  4. Know the current prices.
  5. Purchase supplies from the manufacturer in bulk.

Reselling items can get you loads of money. Somehow unbelievable? Well, a 35-year-old made $10 000 in a single month just by reselling. As stated by an article from CBNC, she didn’t have to work after she embarked on reselling. The significance of resellers in the market is noteworthy. As they reach a wider audience, they help manufacturers earn more while they also earn for themselves. Now, if this process involves major and exclusive transactions, then make sure to have a written reseller agreement.

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