Alabama Value Added Reseller Distribution Agreement
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How to fill out Value Added Reseller Distribution Agreement?
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FAQ
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
What Is a Value-Added Distributor? A value-added distributor (VAD) not only provides pick, pack and ship services for the products they sell, but also offers differentiating services and solutions that provide additional benefits to their clients.
A reseller is generally less closely associated with the manufacturer, and sometimes does not have a direct relationship with the manufacturer as it generally buys products from distributors. Resellers usually do not keep inventory of product or provide after-sale services.
Similar to a distributor, a reseller sells your products to customers. However, the main difference between a distributor and reseller is the lack of warehousing. Resellers won't purchase or hold your inventory.
Similar to a distributor, a reseller sells your products to customers. However, the main difference between a distributor and reseller is the lack of warehousing. Resellers won't purchase or hold your inventory.
Distributors consist of order takers, and generally lack real product knowledge. On the other hand, there are VADs, which provide a broad range of products, stock inventory, operate their own warehouse(s), supply credit to re-sellers, and have dedicated sales teams trained in understanding your products.
A VAR agreement is a governing law that increases the value of a product and enhances the customer experience by maximizing complementary aspects of both companies. A value-added reseller agreement delineates reseller rights and specifies the conditions required for performing (for either party).
Reseller Agreement: A legal agreement between a supplier or manufacturer and a reseller defining the regulations and conditions upon which the reseller may sell the manufacturer's products or services.