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A stamp dealer is a company
Company

Generally, a company is a form of business organization. The precise definition varies.In the United States, a company is a corporation—or, less commonly, an association, partnership, or union—that carries on an industrial enterprise." Generally, a company may be a "corporation, partnership, association, joint-stock company, Inv...
 or an individual who deals in postage stamps and philatelic products. It also includes individuals who sell postage stamps for day to day use or official stamps for use on court documents.

amp dealer generally has a large stock of used and unused stamps
Mint stamp

In philately, a mint stamp is a postage stamp which has never been utilized as postage to mail an article and as such has never been Cancellation ....
 for sale to stamp collectors. Many of them have a system of sending stamps to customers on approval basis.






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A stamp dealer is a company
Company

Generally, a company is a form of business organization. The precise definition varies.In the United States, a company is a corporation—or, less commonly, an association, partnership, or union—that carries on an industrial enterprise." Generally, a company may be a "corporation, partnership, association, joint-stock company, Inv...
 or an individual who deals in postage stamps and philatelic products. It also includes individuals who sell postage stamps for day to day use or official stamps for use on court documents.

Stamps on Approval Basis

A stamp dealer generally has a large stock of used and unused stamps
Mint stamp

In philately, a mint stamp is a postage stamp which has never been utilized as postage to mail an article and as such has never been Cancellation ....
 for sale to stamp collectors. Many of them have a system of sending stamps to customers on approval basis. When a customer gets stamps on approval basis from a dealer, he has got the choice of either returning or retaining the entire lot, or retaining that part of the lot that is of interest to him and return the rest back to the dealer. Payment is made only for such stamps that the customer has desired to retain with him.

The advantage with this system is that, the dealer gets to show his stamps to a potential customer and hope for a sale, and for the customer the chance to choose which stamps to purchase and to inspect them before paying.

Specialising in Topics

Since the scope of stamp collecting is very large, dealers necessarily will have to specialise in some part of the hobby. Most often a dealer will be stocking the stamps of his country. Besides this he might keep some stock of stamps of neighbouring countries.

He might also specialise in stocking stamps on specific topics
Topical stamp collecting

Topical or thematic stamp collecting is the practice of collecting postage stamps relating to a particular subject or concept. Topics may include almost anything, from birds on stamps, to famous physicians, to the history of southwest England....
, such as stamps having the images of national flags, animals, birds, and so on.

Yearwise Country Packets

To encourage collectors in buying stamps of their country (or other countries), dealers stock stamps of their country in year packets. Each packet will contain all the stamps issued by that country in that year. For a serious collector who wants to have a set of stamps of his country this becomes the easiest method. Obviously there is a limitation to this. Stamps from early years that are hard to come by will either not be available in a packet, or would be very expensive.

Usually year sets are available both in mint unused condition and in used postmarked condition. The packets containing used stamps will usually be priced less than the unused mint stamp packets. Though some of the larger premium dealers would price both packets without any difference or with a fractional difference.

Used stamps pertaining to earlier years, and those that are hard to come by are priced as high as the mint stamps or in some cases priced more than the mint stamps.

Stamp Packets

Stamp packets are the easiest and cheapest method for a person to start his hobby in stamps. Dealers usually pack used stamps into packets of 50, 100, 200 each or more. These in turn are categorised into countries and topics.

Method of Selling

While most of the stamp dealers cater to the clients in their locale or town, the larger dealers will necessarily have to extend their sales reach outside their region. To this effect some of the larger dealers come out with a printed catalogue
Stamp catalog

A stamp catalog is a catalog of postage stamp types. Although basically just a list of descriptions and prices, in practice the catalog is an essential tool of stamp collecting....
 of stamps in their stock. These are mailed free of cost to customers or would be customers on a regular basis.

Increasingly dealers are adapting to the internet
Internet

The Internet is a global network of interconnected computers, enabling users to share information along multiple channels. Typically, a computer that connects to the Internet can access information from a vast array of available server and other computers by moving information from them to the computer's local memory....
, by setting up website
Website

A Web site is a collection of related Web pages, images, videos or other digital assets that are hosted on one Web server, usually accessible via the Internet....
s which offer their stamps to anybody around the world.