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This is a fairly difficult question as small or large web hosting companies are resellers in its own way. For instance, large web hosts may lease floor space in a data center facility and from that perspective are reselling network connectivity and resources to its clients. The clients themselves can also be resellers in that they can sell web space to its own clients. The whole concept is based on a value chain model where at each point one company adds value to its product and so forth down the line. The disadvantage is that as it goes further down the chain, the less control and one web hosting provider has. But it takes away the technical administration tasks involved in managing servers and provides opportunity for businesses to enter the web hosting marketplace with low overheads.

If you need to host important or mission critical data then the reseller web hosts are probably not the best choice but for general purpose web sites, it shouldn’t be a problem.