A value-added reseller (VAR) is a company that enhances an existing product by adding features or services to it and then resells the upgraded product as a new package. This can include adding software, providing consulting services, or bundling the product with additional hardware to meet specific customer needs. VARs serve as a [[physical channels|physical distribution channel]] because they take possession of products from manufacturers and deliver them to end-users, often providing localized support and customization that manufacturers might not offer directly. Unlike an [[original equipment manufacturer (OEM)]], which produces components or products that are often rebranded and sold by another company, VARs focus on enhancing and reselling existing products rather than creating new ones. Meanwhile, [[systems integrator|systems integrators]] specialize in designing and implementing complex IT systems by combining various components from multiple vendors into a cohesive solution, whereas VARs typically focus on adding value to individual products or product lines before selling them.