Value-Added Reseller

Retailers are basically intermediaries between manufacturers and consumers. A value-added reseller takes that up a notch by offering more than a regular merchant might. They combine readily available items with additional features or services that increase the value to the end user.

Add-ons could include installation, customization, technical support, training, or physical items that can enhance the use of the product. The combined value of the package is generally far greater than if the items were purchased separately. If the added value is both clear and appropriate, a VAR business model can increase revenue and help merchants stand out in a crowded market.

The VAR system benefits all parties. The original vendor makes more sales while focusing on their core business, while the consumer gets more for their money. The merchant moves more merchandise; while they may make a smaller profit per item, the overall increase in sales can be quite profitable.