A Value-Added Reseller is a company that adds upgraded features to the original products or services for resell.
VARs offer companies an added value to their business by helping them in improving their competitive edge. For example, a VAR would work with an IT company to create a unique application for their specific hardware products. A VAR may also work with an OEM in manufacturing hardware and customize it to be sold to customers.
Another example is VAR providing added value for a company in terms of professional training services such as consultation and strategy.