Definition
A value-added reseller is a company that adds features or services to an existing product, then resells it as an integrated product or complete “turn-key” solution. This practice occurs commonly in the electronics, or IT industry, where, for example, a VAR might bundle a software application with supplied hardware.
Value-Added Reseller
What is ‘Value-Added Reseller’
A firm that enhances the value of the products it resells by including complementary products or services, usually as part of a package deal. Value-added resellers play a prominent role in the computer industry, and may provide additional hardware, installation services, consulting, troubleshooting, or other related products or services.
Explaining ‘Value-Added Reseller’
Value-added resellers form an important part in the distribution chain for many products. They are able to make higher profit margins if they effectively manage their value-added services. Many car dealerships attempt to be value-added resellers by adding on additional features such as custom parts and services. These features typically earn a high profit margin for the dealership.
Further Reading
- Regulating new banking models to bring financial services to all – www.tandfonline.com [PDF]
- Perceived Factors Influencing ICT Vendors–Value Added Reseller Partnerships' Satisfaction in South Africa – onlinelibrary.wiley.com [PDF]
- The point of purchase decision in a supply chain with value-added reselling – www.tandfonline.com [PDF]
- Financial bootstrapping and venture development in the software industry – www.tandfonline.com [PDF]
- An investigation into the ICT vendor–value added reseller partnership satisfaction in South Africa – onlinelibrary.wiley.com [PDF]
- Women entrepreneurs securing business angel financing: Tales from the field – www.tandfonline.com [PDF]
- An investigation into the ICT Vendor–Value Added Reseller (VAR) partnerships and the perceived factors that influence their relationship satisfaction in South Africa – open.uct.ac.za [PDF]
- A model of value creation: Supplier behaviors and their impact on reseller-perceived value – www.sciencedirect.com [PDF]
