Glossary term

Reseller

Definition

A business or individual that purchases products in order to sell them onward, either at retail or to other businesses, without materially changing them. Resellers often require documentation such as a resale certificate to buy tax-free.

A reseller is a business or individual that buys products in order to sell them onward, either at retail or to other businesses, without materially changing them. Resellers make money on the margin between what they pay and what they charge. Because they are not the final consumer, they often buy tax-free using documentation such as a resale certificate.

How it works

A reseller sources inventory from a manufacturer, distributor, or wholesaler, then sells it through its own channels: a physical store, an online shop, a marketplace, or its own B2B accounts. The goods stay essentially the same. A reseller might rebox, relabel, or bundle products, but does not manufacture or substantially transform them. In most US states, a reseller registers with the tax authority and presents a resale certificate to the supplier so sales tax is collected once, at the final sale, rather than twice.

Why it matters

Resellers are a core B2B customer type. They buy in larger quantities, expect account-based pricing, and often negotiate rather than pay list price. Handling them well means supporting tax-exempt purchases, tiered or quoted pricing, and repeat ordering. Getting the resale certificate on file is what keeps a tax-exempt sale defensible if you are ever audited.

Applied to Shopify B2B quoting

On Shopify, resellers rarely check out at the published retail price. They ask for a quote, a volume discount, or terms. A quoting workflow lets you capture the request, apply reseller pricing, attach or verify a resale certificate, and send back a figure the buyer can accept and pay through checkout. Storing certificates and negotiated prices against the buyer keeps repeat reseller orders fast. See the B2B quoting glossary for related terms, or pricing for plan details.

Frequently asked

Is a reseller the same as a distributor or wholesaler?

Not exactly. All three buy to sell onward, but distributors and wholesalers typically sell in bulk to other businesses, while a reseller often sells to end customers at retail. The lines overlap, and one business can play more than one role.

Do resellers always buy tax-free?

No. Tax exemption applies only when they present valid documentation, such as a resale certificate, and only in jurisdictions that allow it. Without a certificate on file, the sale is treated as taxable.

How do I handle reseller pricing on Shopify?

Resellers usually expect prices below retail, so many merchants use a quote or B2B pricing workflow. You capture the request, apply account-specific pricing, verify tax-exempt status, then send a checkout-ready quote the buyer can accept and pay.

Turn quote requests into paid orders

ShopQuotes is a free-to-start Shopify app for branded, checkout-ready quotes.