Authorized reseller: Overview, definition, and example
What is an authorized reseller?
An authorized reseller is a company or individual that has been officially granted permission by a manufacturer or supplier to sell their products or services. This authorization typically comes with specific terms and conditions that govern how the reseller can market and distribute the products, ensuring that they comply with the brand’s standards and pricing policies.
For example, a computer manufacturer might authorize a retailer to sell its products through its store or online platform, ensuring that the retailer adheres to the manufacturer’s guidelines for product representation and warranty services.
Why is an authorized reseller important?
Being an authorized reseller is important because it establishes a formal relationship between the manufacturer and the reseller, ensuring the legitimacy of the reseller’s offerings. For businesses, this means that the products are authentic and backed by the original manufacturer’s warranty or customer support.
For consumers, purchasing from an authorized reseller ensures they receive genuine products and services, along with proper customer support and warranty coverage. It also helps protect the brand’s reputation by ensuring that products are sold in a manner that aligns with the manufacturer's standards.
Understanding an authorized reseller through an example
Imagine a consumer electronics brand authorizes a local electronics store to sell its smartphones. The store is considered an authorized reseller because it has signed an agreement with the brand, which allows the store to sell the smartphones at the manufacturer’s suggested price and provide warranty services in line with the manufacturer’s terms.
In another example, a software company may have a network of authorized resellers that are allowed to sell its software licenses. These resellers must provide customer support and handle returns in accordance with the software company’s policies, ensuring that customers get the same level of service as if they were buying directly from the manufacturer.
Example of an authorized reseller clause
Here’s how an authorized reseller clause might appear in a contract:
"The Reseller is hereby authorized by the Manufacturer to market, distribute, and sell the Products within the specified territory. The Reseller agrees to adhere to all terms and conditions set forth by the Manufacturer, including but not limited to pricing, product display, and warranty service requirements."
Conclusion
An authorized reseller is a key partner for both manufacturers and consumers, ensuring the authenticity and quality of products while maintaining the integrity of the brand. By working with authorized resellers, manufacturers can control how their products are marketed and distributed, while consumers can be confident they are purchasing genuine products that come with proper support and warranty coverage.
For businesses, becoming an authorized reseller can provide access to branded products and services, while complying with established standards that benefit both the reseller and the manufacturer.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.