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What Is a Value-Added Reseller (VAR)? Definition and Examples

A value-added reseller sells a vendor’s product to end customers and adds services or integration to make it more useful for their needs.
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A value-added reseller (VAR) sells a vendor’s product to an end customer and adds services that make it work better for that customer, such as configuration, integration, implementation, training or support. The added service layer—not resale alone—is the defining idea.

What does VAR stand for?

VAR stands for value-added reseller. The term describes a company that resells another company’s product while adding useful services or integration around it. The specific services depend on the product, vendor and customer; a VAR does not necessarily provide every service commonly associated with the role.

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What does a value-added reseller do?

A VAR helps a customer choose, prepare or use a product in the customer’s particular environment. For example, a business might need software connected to existing systems, configured for its processes, or supported after installation. The VAR combines the vendor’s product with some of that customer-facing work.

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  • Consulting and design: advising on a solution or how it should fit the customer’s needs.
  • Configuration and integration: adapting the product or connecting it with other systems.
  • Implementation: installing or putting the solution into operation.
  • Training and support: helping customers learn and troubleshoot the product.

These are examples, not a standard checklist. The services actually included should be confirmed with the particular reseller.

Examples of value-added reselling

Technology is a common setting because software, hardware, networking equipment and business systems may need setup or integration before they are useful. Cambridge University Press gives the example of accountancy software sold to small businesses mainly through VARs: the reseller connects products into systems suited to particular customers (Cambridge Dictionary).

Vendor definitions can be narrower. In its Genesys partner context, Genesys describes an Interacts member that resells Genesys software and/or partner services such as consulting, implementation, customer development, training and technical support (Genesys documentation). That is an example tied to Genesys, not a universal definition of every VAR.

The idea is not inherently limited to IT. The ERA glossary also describes contractors or integrators that buy products and add value for customers (ERA glossary).

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VAR vs. reseller vs. value-added distributor

Role Typical customer What distinguishes it
Reseller End customer Mainly sells or fulfills a product; the term alone does not promise customer-specific services.
Value-added reseller (VAR) End customer Resells a product and adds customer-facing services or integration. A VAR may source products through a distributor.
Value-added distributor (VAD) Reseller partners Works at the distribution level, supplying reseller partners rather than typically selling directly to the end customer.

These roles are best distinguished by asking who the partner sells to and what work it performs. Westcon’s definitions describe a VAR or reseller as having a direct end-user relationship, while a distributor serves reseller partners (Westcon: What is a value-added distributor?). TechTarget notes that a VAR can obtain products through a distribution partner (TechTarget: VAR).

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What makes a reseller a VAR?

The sources use VAR as a descriptive business and channel term; they do not establish a universal legal threshold for how much service a company must add. In practice, look for evidence that the reseller does more than process an order: does it configure or integrate the product for the customer, implement it, train users, or provide support? Ask which services are included in the agreement and who is responsible for them.

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What to check before buying through a VAR

  • Which product is being resold, and who provides the underlying product warranty or vendor support?
  • What configuration, integration or implementation work is included—and what is billed separately?
  • Who will deliver training and ongoing technical support?
  • Does the VAR have experience with the customer’s particular systems or requirements?

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