Reseller web hosting is a system whereby a company buys bulk hosting at a wholesale price and then subdivides it and sells it at a markup.
The reseller buys the hosting from a large data center that operates the servers. Depending on the type of reseller account, the reseller may offer the technical support and billing, or it may be performed seamlessly by the data center.
Resellers may be very large companies hosting thousands of sites. They are responsible for promoting their hosting plans and supporting and billing their customers.
They in turn, are supported by the original reseller. Some resellers are just small web design companies that offer hosting for their customers at a small profit.
The reseller has fewer customers to deal with than the bulk hosting seller, they can usually offer far better service and technical support.
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