Table of Contents
Introduction
In the realm of modern eCommerce, the reseller business model has emerged as a game-changer. It helps reshape the distribution and sale of goods and services. From affiliate marketers to retailers and wholesalers, resellers play a vital role in connecting manufacturers and end consumers. IT VARs, that specialize in software solutions and office supplies hold a prominent position in this landscape.
Resellers act as intermediaries, purchasing products or services for reselling rather than personal consumption. They add value, adjust prices, and mark up goods to generate profits.
In IT VAR eCommerce software, resellers are the key players. They provide custom solutions to meet businesses’ technology and office supply needs.
This guide provides comprehensive insights and knowledge about the reseller business model. So, whether you are an established IT VAR reseller or a newbie entering this dynamic domain, this guide will equip you with the information you need to thrive in the ever-evolving reseller landscape.
Types of Software Reselling Business Models
The marketplace for SaaS is competitive. Businesses must collaborate with third parties to expand their market visibility. This applies to platforms for IT & Office Supplies VARs as well. Let’s dive into some sales channels to consider when developing effective SaaS sales strategies.
SaaS Reselling
SaaS, or Software as a Service, offers a convenient alternative to traditional software installation and maintenance. Instead of purchasing and installing software locally, SaaS is provided by a third party over the Internet.
Think of the evolution from purchasing and updating Microsoft Word in-store to now acquiring it online from a provider.
It helps eliminate the hassle of maintenance as the software is hosted on the provider’s server. This model holds relevance for VAR ERP software, allowing businesses to access and utilize software solutions seamlessly without the burden of local installation and upkeep.
Affiliate Marketing Programs
Affiliate programs serve as strategic partnerships, enabling your product to be promoted on other websites. When visitors click on your link and make a purchase, the referring site receives a finder’s fee. This modern-day rendition of the middleman concept extends into the digital realm through the reseller eCommerce platform.
You can establish affiliate programs directly with consumers, offering incentives for referrals that convert into customers. Running affiliate programs where customers share leads from their businesses in exchange for rewards also helps expand your pipeline.
White-Label SaaS Reselling
White-label SaaS reselling is a sales model where a reseller purchases software from a third-party provider. This software is specifically designed for rebranding with the reseller’s logo and brand. This approach eliminates the need of building their software and offload management responsibilities to the provider.
Although some providers offer sales enablement material, marketing and selling the software becomes the reseller’s responsibility. Using this model allows resellers to conduct research, set pricing, and generate profits by marking up software products and services. With the reseller’s branding, clients remain unaware of third-party involvement. Successful partnerships in this model depend on the discretion of both the reseller and the third-party provider, ensuring a mutually beneficial relationship for an IT reseller.
Why Should You Consider a Software Reseller Business Model?
Seamless to Begin
When starting a business, allocating funds for startup costs is crucial, but a sizable budget may seem out of reach for newcomers. Entering the reselling mode is a powerful solution. Countless retailers leverage this approach, utilizing B2B eCommerce features for IT Resellers. They sell through social media platforms, sales channels, and online marketplaces. These avenues offer immense potential for aspiring entrepreneurs in the eCommerce business.
Effortless Order Fulfillment Process
Customers have to just pay the money and download the software onto their personal computers or receive them at their email ID. This completely eliminates warehousing, picking, packing, and returns.
No Inventory Required
For an online business, the beauty of selling software products lies in its ability to bypass inventory holding. Some marketplaces offer platforms for retailers to list their products without needing physical stock. However, for physical outlets, stocking shelves becomes a necessity, requiring inbound stock levels to drive sales.
Adjustable Profit Margin
As a VAR, you enjoy the flexibility to deviate from the manufacturer’s suggested retail price. Sales channels and online marketplaces empower you to set your prices, granting you control over profit margins.
This dynamic pricing environment empowers resellers to find optimal pricing strategies that maximize profitability in the market.
How To Establish a Software Reseller Business?
While adopting a software reseller business model, there are several points you need to consider:
Understand Your Audience or Industry
Understanding the customer and industry is paramount. Therefore, you should choose niches that you understand well to maximize success. When joining reseller partner programs through an eCommerce platform focus on sustainable profits, considering both exceptional service and the financial stability of clients and their respective industries. This holistic approach, coupled with seamless integration, ensures long-term profitability and success.
Think About What You Sell
Selling everything under one roof can overwhelm your prospects. Hence, it becomes important to consider: What Do You Sell?
Achieving success rests on striking a balance: grasping customers’ needs, aligning prices with their budgets, and forging meaningful connections. Begin by focusing on one aspect of this strategy and build from there.
Where Do You Sell?
Online reselling, of course, has become more accessible than ever. eCommerce platforms offer resellers the opportunity to sell customized products. They also provide flexible checkout features to tackle cart abandonment. Although it incurs some costs, the potential for high revenue and the ability to tailor their online store makes it an attractive choice for ERP solutions and added reseller VARs.
How Do You Sell?
Optimizing revenue projections goes beyond listing products on an eCommerce website. Resellers can tap into social selling mediums for better results. They can also track campaign performance using tools like Google Analytics that help identify high-traffic and conversion channels. Other strategies include email marketing, affiliate programs, and SEO. These play crucial roles in promoting products for ERP VARs and driving website traffic.
Getting Started
The software reseller business model provides agencies with a low-risk, high-reward approach. When you leverage the offerings of a SaaS provider, you can resell solutions tailored to your clients’ needs. This, in turn, enhances profits and client relationships. You also get to set your own pricing and service proposition to maximize returns.
Key Takeaway
Software reselling has emerged as a prominent strategy in the thriving eCommerce retail industry. Adopting popular platforms like VARStreet provides numerous advantages to resellers. It facilitates efficient inventory management, effective online selling, and robust marketing using industry-leading tools. When you embrace reselling and leverage ERP implementations, you unlock tremendous growth opportunities in the ever-evolving digital marketplace.
