What is a VAR (value-added reseller)?
A VAR (value-added reseller) is a channel partner that resells a vendor's product combined with its own added value — such as integration, customization, installation, training, or support. The 'value-added' distinguishes a VAR from a pure reseller that simply moves boxes.
What it means
A VAR buys a vendor's product and sells it on to end customers as part of a more complete solution. The added value might be integrating the product with the customer's existing systems, bundling it with complementary hardware or software, customizing it, or wrapping it in installation, training, and ongoing support. Because the VAR does more than transact, it typically owns a deeper customer relationship and earns higher margin than a low-touch reseller. VARs are especially common in IT hardware, networking, and enterprise software.
Why it matters
VARs let vendors reach customers who need a complete, implemented solution rather than a standalone product. The VAR handles the last-mile complexity — fit, integration, and support — that the vendor may not want to deliver at scale. For customers, a good VAR is a trusted advisor who assembles the right solution. For vendors, VARs extend reach into markets and verticals while offloading services delivery, though they require strong enablement and clear deal registration to keep engaged and avoid conflict with other partners or direct sales.
How it works / example
A company needs a new security appliance. A VAR recommends the right vendor product, integrates it with the company's existing firewall and identity systems, migrates configurations, trains the IT team, and provides ongoing support — selling the whole package at a margin above the hardware cost. The VAR registers the deal with the vendor to protect its margin. Vendors manage VARs through a PRM like xAmplify, providing onboarding, certification, deal registration, MDF, and co-marketing to keep VARs productive.
Related terms
A VAR is one type of channel partner alongside distributors, MSPs, ISVs, and SIs. VARs rely on deal registration, partner enablement, partner tiering, and MDF, and are managed within PRM. A VAR that adds ongoing managed services increasingly overlaps with the MSP model.
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Frequently asked questions
What is the difference between a VAR and a reseller?
A plain reseller buys and resells a product with little added value, competing largely on price and availability. A VAR adds services — integration, customization, training, support — delivering a more complete solution and earning higher margin through a deeper customer relationship.
How is a VAR different from an MSP?
A VAR primarily sells products (with value-added services around the sale), often as one-time or project-based transactions. An MSP delivers ongoing managed services, typically under recurring contracts. Many VARs have added managed services and now operate as hybrid VAR/MSPs.