The Asia Pacific has emerged as one of the most exciting marketplaces that are witnessing amazing growth rates in current times. As a producer, Asia sourcing of raw materials and manpower has become extremely important to keep your manufacturing costs down and stay competitive in the market. In addition to sourcing, this huge and expanding market is very lucrative to sell your products. One of the ways with which you can enter this dynamic market is through a reseller. A reseller is a partner who will sell your goods and services in this market. 

To make such a partnership legal, you must have a reseller’s agreement. To know more about the reseller’s agreement and the benefits of such an agreement, you should read this article. 

  • Reseller agreement and its features for smooth operations 

When we talk about resellers’ agreement for sourcing from Asia or selling your products in this market, there is no one size fits all. The Asia Pacific is quite a huge and diverse market, wherein you will have to carefully check the market condition, the political environment, and other elements before you draft your agreement. Let us find out the main points that you should look at when you are drafting reseller’s agreements with your partner in the Asia-Pacific market. 

1) Legislation: There are around 13 countries in the Asia and Pacific region. Each one of these has economies that are at various stages of development. When you are designing a resellers agreement, you must carefully research the laws related to it. To get an in-depth understanding of the law, you must hire a local lawyer who is an expert in corporate and business laws. After getting the inputs from the expert, you can draft the reseller’s agreement. It should safeguard your interest and that of the reseller and should also follow the local law. 

2) Taxation: Carefully check the taxation rate that is in operation in the region for which you are making the reseller’s agreement. Find out what rate of tax you have to pay, and then put it in the reseller agreement. 

3) Political stability: When you are drafting a resellers agreement, you must carefully check the stability of the country. While drafting such an agreement, you should follow the international best practices that fit the local laws. 

4) Availability of resources: Asia sourcing for resources, both human and manufacturing has become extremely important for any business to stay competitive. When drafting any resellers agreement, you must first do an expert study on whether the raw input you want in your manufacturing process is present in an adequate amount.  

  • Benefits of a reseller partnership 

Reseller partnership has a multitude of benefits, some of which includes the following: 

1). Benefits for the vendor: As a vendor, you get numerous benefits, including: 

  • Quickly able to expand in the new market. 
  • No overhead cost is incurred for sourcing from Asia, as you don’t have to hire, train and retain your sales and marketing team. This is done by the reseller. 
  • Getting access to the already established customer base of the reseller. 
  • Diversifying your revenue streams. 

2). Benefits for the reseller: The reseller also benefits from such a partnership. Some of these include the following:

  • Offer competitive advantage in the local market. 
  • Don’t have to allocate resources to building a product. 
  • Revenue share. 

The reseller agreement, if done rightly can offer you access to a new market with very little entry barrier. This will help you to improve the market share of your products and services without investing heavily in marketing and sales teams.  

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