Typically, you can get more resources, at a lower price, by using a reseller account.
If you are capable of properly managing the cost yourself, and are OK with using a free control panel instead of cPanel, you can come out ahead with a VPN.
Reseller hosting is best when you are hosting multiple sites.
Put it this way, lets say you host 10 websites ( domains ).
Most web hosters have CloudLinux with limits of 1 CPU 1 GB RAM and 1-5 I/O Mbps, so if you have 10 websites, and all getting half of their resources u will technically get 5 CPU, 5 GB RAM and 25 MBps I/O
On a VPS, you may have 2 vcores, 4 GB RAM, and an unset disk I/O ( which most VPS would classify above 20, some 40 as *resource abuse* depending on the VPS pricing and their acceptable use policy )
If you host 10 websites of the previously mentioned, you won't havew sufficient vCores/RAM/Disk I/O.
This difference scales with the number of websites you intend to host
So, A reseller hosting would be better if you intend to host many websites.
Now onto the advantages of VPS. VPS ( KVM at least ) lets you have full control of your site ( this is common knowledge ).
But if you have one site that uses more resources ( EG. 2 cores, 4 gb ram, 20 mbps disk I/O ), most normal cpanel shared hosting will not have such high Cloud Linux limits. Hence, your side will be slower because cloudlinux limits your CPU/RAM/I/o usage ). So its better to have a VPS OR a semi dedicated hosting ( shared hosting, with less users on a server, and more resources for each account than the normal limits i said above ).
Plus, if you host another 9 websites that barely use any resources ( eg. static sites or new sites with little to no visitors ), then its better to go for a VPS
You will be not need to pay for cPanel license, This days you can get reseller hosting even under $3/mo while VPS is bit expensive even If price of VPS will be $3/mo then you will be need to pay for cPanel at $15/mo or something extra.
Usually reseller hosting servers are different and they have more resources so you could host many sites on them. Also, what many hosting providers offer for reseller hosting buyers, is free WHMCS license + WHM/cPanel, so you could cut down costs when reselling. Otherwise, you might have to buy WHM/cPanel license and WHMCS license yourself which is not really cheap on monthly basis.
The point of Reseller is that you do not need to handle everything and when you need support that you have someone above you who can do all the work for you. Because the one who your provider will be needs to do everything for you as per request from you. And with VPS is that lower but even is it possible. And with Reseller can you just save alot of money with huge resources! So you can grab one and test it out for a month and then you have enough time to decide it.
A VPS even if administered, requires more work and administration. The reseller has the nice feature that everything is in a shared environment rather than being assured that it will work well. At least good companies should make sure it works properly.
Yesterday I migrated a new customer reseller website from another provider.
If you are new to the hosting filed and you would like to manage your customers by third party then you can have the reseller service. Your client will feel that you have your server and managing it by yourself. Reseller service provides you the platform for selling the shared hosting services to your clients or when you would like to host multiple accounts with their separate panel on the same server then you can have the reseller service. Under it, you can create your own packages and can assign them to your accounts as per the requirement of the account.
Drawback of it is that , you won't have the root access . Reseller service has the root access with your hosting provider. You can not manage it by your own.
Advantages of VPS service-
1. Management of VPS - If you are familiar with hosting field then you can have the VPS as it is managed by yourself.
2. Root Access - It's your own server, you have the root user access for it.
3. TOS - You can define the terms of services for your clients on VPS.
4. Resources - You will have the full resource allocation as it's your server. You can utilize it for your server as you wish.
Hope this will clarify the use of reseller service.