There are many ways to go about handling your online store. The most direct and straightforward of these ways is to prepare your own products and sell them. Apart from this though, there are a couple of other ways you can stock your online store.

These are the paths of authorized dealers and resellers.

In this article, we’ll start by defining what authorized dealers and resellers are. After, we’ll also answer some important questions and issues that may come to mind such as:

  • How can I become an authorized dealer or reseller?
  • How would I know when to become one?
  • How important is it to have a trademark?

Authorized Dealer and Reseller

An authorized dealer or reseller is a seller that has an agreement or contract with the person manufacturing the goods. The agreement between the two parties allows for the reseller to legally sell or distribute the goods and merchandise of a certain brand.

Simply put, an authorized dealer has the official rights to a brand’s merchandise. So what are the benefits to becoming an authorized dealer and reseller? In actuality, the benefits extend to both sides of the agreement.

For the brand providing the merchandise, they have visibility on the dealer’s supply chain. The inventory is transparent for the brand to see. This way, they can gauge what has been sold and how much profit was made.

Apart from that, they will also be privy to related sales research and costing. For costing, they can ensure that pricing is consistent. All of these contribute to more money made.

At the same time, the authorized dealer benefits from the name and reputation of the brand. The fact that they are the authorized reseller allows them to be a trusted source in the marketplace. People can purchase items without worry of getting a fake item, or one that is not of quality.

Moreover, the items are covered by the manufacturer’s warranty. It is an added bonus for buyers.

Unauthorized dealer defined

Just to be clear on the subject, let’s cover what an unauthorized dealer is. As the name suggests and borrowing from the definition of an authorized dealer, an unauthorized dealer is one that does not have the rights to sell a specific brand or manufacturer’s products.

These types of resellers usually purchase the product from another country or source and resell them in their own store. While the items have the brand’s name though, the quality is not assured. In fact, these items can be damaged or defective. It goes without saying, but manufacturers will not honor the warranty of these items in the way that they do for authorized sellers.

The main reason why people sell unauthorized goods is mainly due to the price. Without the manufacturer, they are free to manipulate the price however they want. Fortunately, some governments are cracking down on these goods. The UK for one have already made these unauthorized goods illegal.

How Can I Become an Authorized Dealer or Reseller?

Now that you understand what an authorized dealer or reseller is, the next question is how can you become one.

The first thing you’ll need to do is to find a brand that you want to represent. Make sure this is in line with your store. For instance, if your online store sells clothes, it wouldn’t make a lot of sense if you would start reselling Apple products.

The next thing you’ll have to do is to seek out the opportunities. Do some research and find how you can get in contact with certain people and through which channels.

Most if not all brands, companies, and manufacturers operate on an application process. While the information required varies from brand to brand, they will naturally be seeking out some standard information.

These things could include how big your company is, how many years you have been in business, how many employees are included in your company, how your presence online is, and the service coverage you have just to name a few.

Do your best to provide the information. Once done, it is in the hands of the company that you are applying for. They will be evaluating your store and seeing if you are a right fit to be an authorized reseller.

Also, bear in mind that certain countries have specific licenses for this. The United States for example has certain reseller or business licenses that you need to get first. These vary between states.

How Would I Know When to Become One?

Being an authorized seller has its perks. But how would you know when to become one?

Perhaps the best indicator is if it will be a right fit for you. As mentioned before, if you think that a certain brand’s products will fit your own products, this is a good sign. However, you also need to think about the company. It would also be good if your online store is established and has a bit of a following.

Think about what your store can offer them. If your store sells well to a certain location that is big on a specific niche (tech, clothing, etc), then this can entice your company to engage you as an authorized seller.

In fact, certain companies will look for you to do this kind of research. You should start looking at the demand of an area, the competition if any, the pricing, and more.

How Important is it to Have a Trademark?

The last topic we’ll be covering is trademarks. How important is it to have a trademark?

When you become an authorized dealer, the trademark of the company you are reselling from – in a way – becomes associated with your company. Why is this important?

First of all, the trademark is a symbol of everything the company stands for. It communicates the mission and any emotional ideas that are connected to it. Moreover, it is the thing that buyers will recognize the most. This will usually be what customers will search for.

It is also a beacon of the company’s reputation, and the fact that your company is attached to it will mean it will rub off on you too. It now becomes your job to uphold this reputation as well.

In terms of ranking online, these trademarks will work wonders as they already have a name for themselves. Better traffic will mean better sales.

So what are you waiting for? If you are a right fit to become an authorized seller, go and find those opportunities.

Want to read more? Check out our other articles!

Related Posts