Indirect Reseller

An indirect reseller refers to a third-party entity or intermediary that purchases and sells goods or services on behalf of the original provider without directly altering or providing additional value to the product or service.

Example: A software company develops a project management tool and partners with a network of indirect resellers to reach a wider market. These resellers, often local IT service firms, bundle this software with their own offerings to sell complete packages to businesses. For instance, a reseller in the IT sector might include the project management software as part of a comprehensive productivity suite aimed at small businesses, handling the licensing and subscription management process for their clients. This allows the software developer to tap into the reseller's existing relationship with their clientele, thereby expanding their reach without directly engaging each end customer.

• Indirect resellers act as a bridge to new markets and customer segments by leveraging their established networks and relationships.
• They enable original providers to focus on their core products and services by offloading the sales, and sometimes support, to third parties.
• These partnerships often involve complex agreements and require careful management of relationships, pricing strategies, and revenue sharing to be effective.

Understanding indirect reseller helps businesses expand their market reach and increase sales through strategic partnerships, without the need to significantly invest in building and managing a larger direct sales force. It also allows businesses, especially in the B2B, SaaS, and partnerships domains, to focus on product development and innovation while relying on partners for distribution.