What is a Reseller and What is Their Role in Software Distribution?

Icon-watch 4 min read
Icon-date Jan 12, 2024
Lee R.

Customer Success Manager

What is a Reseller and What is Their Role in Software Distribution?



    We live in a wild world dominated by Information Technology and Software Distribution. And in this said world, we have professionals commonly known as ‘resellers’ who resell products as part of the Software Distribution process.

    Now, in this post, we’ll be looking at what this reselling business model is all about and what it is that a full reseller business does when it comes to the process of Software Distribution.

    Woman working at computer with notepad

    Ready? Let’s get into it!

    What is a Reseller?

    The first thing to know about the reselling business is that a reseller is a jack-of-all-trades in the IT world.

    They can dive into any tech field, from software to hardware, where they’ll establish their resale business, resell items, resell products, ship goods, you name it. But of course, we’ll focus more on the software aspect here.

    Now, the deal with software resellers is this: they make your tech life easier, whether you’re a software vendor or a customer. How, you ask?

    Well, let’s say you’re a customer and you’re on the lookout for some new software in town. You wouldn’t exactly want to have to go through the headache of dealing with a dozen different manufacturers or service providers now, would you?

    Instead, you can choose to work with one software reseller who gets you all the manufactured versions of the product you want, so you can make a necessarily easy pick, especially without the usual hefty price tag.

    That’s what they do.

    A Software Reseller is essentially a middleman who finds different suppliers, buys software in large quantities from them, and resells it to customers. And what makes a reseller profitable comes from the sweet-deal packages they can afford to offer customers because they get great discounts from software vendors in the first place — discounts ranging from 10% to even 50% of the initial product’s price.

    And guess what? These professionals in the resale business do not only enjoy these discounts; they also get specified deal registrations and even back-end sales tax rebates that allow them to sell goods to you under the best business circumstances.

    So, in the end, the reselling business model is about bridging the gap between software manufacturers and eager consumers by reselling software.

    What’s the Reselling Business about in Software Distribution?

    Now, the vital role of a software reseller in the world of software distribution includes general measures you get to see externally and those that go on behind the scenes.

    We’ll be looking at these measures in detail below:

    Merchandising and Promotion

    People in the reselling business are quite known for taking software from suppliers and sprinkling some marketing magic on it.

    Whether it’s by value add or grading and packaging your niche products to make them as tempting as possible to their own customers, software resellers are the best at merchandising and promoting products they get from other resellers and suppliers.

    Inventory Storage and Order Fulfillment

    A Software Reseller also takes up the role of getting software products to people’s doorsteps faster than they can say, “I want it now”. How?

    Well, Software Resellers have the power of teleportation… just kidding! But they do handle storage and make sure software reaches consumers at warp speed so these customers don’t have to go through those long waits, especially with online stores. It’s all part of their work in the supply chain.

    Man with a van delivering packages

    Resale business models and order fulfillment are just two peas in a pod.

    Customer Support

    For customers who may feel lost with new software, a reseller is always ready to guide them through the maze of buttons and options the product comes with.

    Also, if a customer hits a roadblock while using software, they’re always ready to swoop in and save the day by providing that customer with all the necessary documentation and much-needed assistance they’re after; a low risk way of saving you — a software supplier — from the trouble of providing support to a large number of consumers your capacity may not be able to handle.

    Market Research

    A Software Reseller is basically the Sherlock Holmes of the tech world. They’re always snooping around for the latest market trends and juicy customer secrets.

    This lets them know what consumers want before they even know it themselves and what suppliers should be looking to put out in the software market.

    Benefits of Dealing with a Reseller

    So, if you’re a software vendor, you should definitely consider diving into the exciting world of partnering with a software reseller because, with the right steps, both you and your software reseller can hit the jackpot in the SaaS business.

    Let’s take a look at some of the benefits you can expect when dealing with a software reseller:

    1. First, your product will experience turbocharged growth, and your business will expand at warp speed.

    This is because the magic of a software reseller is in the fact that when you partner with them, you’re basically building external sales channels for your own product that will not only shield your company during hard times but will also attract customers to you, like bees to honey.

    2. Also, say goodbye to those wallet-draining hiring, training, and staff retention costs for your marketing and sales teams. When you partner with an online reseller or a software reseller, lower customer acquisition costs and bettered customer experience are the name of the game.

    Cost cutting

    Do you want to cut costs? Just get a software reseller!

    3. With a software reseller business, you’ll have ample opportunity to access existing customer bases, letting you break into new industries in your local jurisdiction and even international markets in a very smooth way.

    4. Also, software resellers help your business plant its eggs in different baskets.

    As a SaaS company, it’s risky business to start selling online and rely on just a few customers for your revenue. However, with a software reseller business, you’ll spread your wings in business quickly, diversify your customer base, and be prepared for any surprise twists and turns.

    Drawbacks of Dealing with a Reseller

    Of course, for all pros, there are cons, and you also need to take these into consideration before creating a partnership with a software reseller:

    1. Educating, training, onboarding a reseller on your sales workflows and processes, and staying in touch with them to get feedback on customer behavior as well can actually be quite the rollercoaster ride.

    So you have to be sure your own ecommerce business has the needed resources for it before you partner with a software reseller business.

    2. You also need to remember that when you partner your business license with the reseller permit of a software reseller business, you’re basically entrusting your prized possession — your own brand — to someone else, which can be risky.

    Network of resellers

    Your many resellers are the real-time you.

    This is why you should do your research and your very best to make the right choice when picking a reseller. Be as selective as possible if need be.


    So, let’s say you have software resellers, and now you’re after a super-duper platform that can help you manage them while boosting your SaaS business.

    If that’s your case, why not check out Relavate?

    The Relavate PRM platform

    A quick look at Relavate in its element.

    Our platform is so easy to use and guaranteed to turn your Resell, Referral, Affiliate, and Implementation partners into customer magnets — meaning more market domination for your own products, goods and services and more of your business dreams coming true.

    Start with us for free by clicking here.

    Lee R.

    Customer Success Manager

    LinkedIn icon

    A seasoned Customer Success Manager known for his unwavering dedication to ensuring client satisfaction. With a knack for building lasting relationships and a passion for problem-solving, Lee is committed to helping customers thrive.

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