The Guide to Differences Between a Computer Accessories Wholesale Seller, Distributors, and Resellers

If you are planning to sell computer parts, then there are three ways you can begin your business; as a computer parts distributor, as a wholesale computer parts seller or a reseller. These three might sound the same, but there are vast differences between how these three business categories approach sales and distribution. In short, distributors buy directly from PC hardware manufacturers and sell them in bulk quantities to wholesale sellers, and resellers buy products from wholesale sellers. But which kind of business is viable for an individual or firm wanting to get into computer parts selling a business? Today we’ll be taking a look at major differences between these three and which of them are viable for your needs.

Aspect 1: The Source

We will start from the source via which these sellers get their computer products. Distributors have strong tie-ups with the manufacturer, as they buy directly from them in bulk quantities in factory outlet prices. This means they get their products for a lot less than the maximum retail price.

Computer parts wholesale sellers buy their products from distributors in bulk, often at discounts over the maximum retail price due to buying in large quantities. Resellers are the final link between the computer parts and customers; they buy from wholesale dealers at prices less than MRP and sell them to customers at MRP.

Business Viability: It is hard to directly get the manufacturer to sell you products as they are usually booked out to sell all their wares to distributors, so unless you get lucky, the best way would be to choose between wholesaler and reseller.

Aspect 2: Initial Investment

Because manufacturers generally ship their products in huge quantities, the sales often go in the range of tens and hundreds of thousands of dollars at the very minimum, that too for just only one kind of product. Hence as a distributor, the initial business investment is very high and can easily reach half a million dollars if you choose to invest in different kinds of computer hardware. Wholesalers also buy in bulk, but not in as many quantities as distributors, so they have significantly lower investment done when buying computer parts. Resellers have the lowest initial investment, as they can simply buy parts from wholesalers when required and that too in small quantities.

Business Viability: If you want to invest the least, a reseller would be the best choice. But if you have the capital, you can go for a wholesaler, or even a distributor if you can get the manufacturer to sell you in bulk.

Aspect 3: Risk Factor

High risk carries high rewards, and the same is true with computer hardware sales. Although they are in demand most of the time, certain parts carry less demand than other popular parts. As a distributor, they will be taking a risk when buying an obscure part that only serves a small section of customers. If they can’t get a wholesaler or reseller to sell those parts, they may have to bear the loss depending on the contract with the manufacturer. Similarly, the wholesaler has to take lower risks but they still have to ship out parts that don’t sell much, a problem most resellers don’t face because they don’t have to stock up in bulk and can swiftly change the wares they sell depending on market conditions.

Business Viability: Distributor is high risk but also carries high rewards if those manage to sell. Same with wholesalers, but with lesser risk factors involved. Resellers have the lowest risk factor and can manage to have the least losses if certain parts don’t sell often. If you can afford to handle significant possible losses, then wholesalers and distributors are a good choice, otherwise, a reseller business is your best bet.

Aspect 4: Profits

It is no brainer that distributors earn the most profits, then wholesalers and resellers in that order. However, that is not always true. Wholesalers can also earn more profits than a distributor, and the same is with a reseller. It all depends on being in the right place at the right time. If your goods sell well, you will have decent profits and if your goods don’t sell, there will be losses. It all mostly depends on your business decision, choice of products to sell and the way you sell your goods: online or offline.

Business Viability: Profits solely depend on how good the business is. Sure, distributors have most profits usually, but they also invest heavily. The same is with wholesalers. Profit is generally calculated as the difference between the money you spent and the money you're obtained, so it all simply boils down to how your business choices are and how good your products sell.

Conclusion

Starting a new business, especially as a computer parts seller, needs to be well researched so that you can start the business as per your business needs and investment you are willing to do. These 4 aspects are here to help you make an informed decision, but the actual question of whether it will be successful or not wholly depends on how you manage and run your business.