Glossary for Resellers | GoDaddy Pro

Glossary for Resellers |  GoDaddy Pro

The business base

When you’re hustling, time is money and that money comes in coins, not bills. That’s why we created our website terminology glossary for web professionals. This free resource for designers, developers, marketers, or anyone else makes it easier to explain technical stuff to customers.

Instead of going back and forth for a long time, you’ll quickly find definitions that break it down into real terms. Start getting time back – and put more of those coins in the bank.

Glossary of Website Terminology: Resellers, vol. 1

When explaining terms for resellers, it is often helpful to return to basic trading. Reselling can be mysterious to some, but most people understand the basics of selling stuff for a profit.


Application Programming Interface (API)

An API allows companies to open up their application data and functionality to external developers, business partners and internal departments within their company. This allows services and products to communicate with each other.

It’s a bit like

Order food from a food delivery app. You choose the meal you want based on the menu, where it then goes to a POS system that passes it on to the kitchen. It will then be delivered to you as soon as it is made.

You may also hear

adapter, interface, middleware, middle layer


Buy rate

The buy rate is the rate at which a company would buy an amount of product at a set price. They would then sell the product to an individual or a company for a fee.

It’s a bit like

When you had a lemonade stand in the summer. You would use your loose change or pocket money to buy some ingredients at your buy rate, then you would sell it for a few bucks to make a profit.

You may also hear


bid price, purchase price, purchase price

cross sell

Cross-sell is the sale of related or complementary products to a customer. Cross-selling is one of the most effective marketing methods.

It’s a bit like

A fast food restaurant asks if you want to add fries to your order if you only buy a burger.

You may also hear

resale, partnering


margins

Margins represent the difference between the cost of a product and the amount you sell it for. It can also mean the amount by which revenue from total sales exceeds expenses in a business.

It’s a bit like

Buying a pair of shoes from a wholesaler for $20 and then selling them to consumers starting at $50. So your profit margin is $30.

You may also hear

mark up, gross profit, net profit


Minimum retail rate (MMR)

MNR is the minimum price that a reseller is allowed to sell a company’s product. It set limits for resellers on both advertised prices and the actual retail prices of the manufacturer’s products.

It’s a bit like

Buying a product from a company that sells a product for $20. The manufacturer would then restrict the reseller from selling the product below $20 to ensure a fair market.

You may also hear

minimum sale price (MRP), minimum sale price, minimum advertised price (MAP)


upsell

Upselling is inviting a customer to buy products or services at the second highest price range. It can be an upgrade to a premium version of a product or add insurance to protect a project.

It’s a bit like

A business owner visits a business card printing company. They intended to use a basic design, but the seller helps them see the value of a professionally designed business card. The entrepreneur opts for a glossy finish to best display the colors.

You may also hear

encourage, push, recommend promote


Intermediary

Resellers buy services or goods for resale rather than consumption. Retailers are considered resellers as they resell goods to end users. Wholesalers are also considered resellers as they resell the goods they buy to retailers.

It’s a bit like

A company that buys furniture from the manufacturer and then sells it to consumers, rather than the manufacturer selling directly to consumers.

You may also hear

distributor, wholesaler, merchandiser, seller


storefront

In the digital world, a storefront is a reseller website. Some of the better reseller programs offer members a ready-made showcase of the products they want to resell. A shop window usually also contains some kind of payment method.

It’s a bit like

An online retailer that has a store in the mall with some of its popular products for consumers to purchase.

You may also hear

storefront, bricks and mortar, showroom


turnkey

This is an arrangement where the provider takes responsibility for all required settings and ultimately delivers the business to the new operator only after the requirements have been met. It already has a proven, successful business model and only requires investment capital and labor.

It’s a bit like

Buying into a fast food franchise. Everything is delivered and set up, and the person who buys it takes care of finances and runs the business.

You may also hear

ready to work, ready to work


white label

White labeling is when a company takes its logo from a service or product and uses the branding requested from the buyer. This mainly happens at supermarket chains.

It’s a bit like

A coffee company that uses the same coffee blend as a coffee company that roasts the coffee, but the company that roasts the coffee puts it in a regular coffee bag or the roast from the other coffee company.

You may also hear

house brand

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