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Merchant middlemen usually own the product that they handle and agent middlemen are brokers who do not own the product that they handle.

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What are the differences between agent middlemen and merchant middlemen?

Merchant middlemen usually own the product that they handle and agent middlemen are brokers who do not own the product that they handle.


What are differentiate an agent from a merchant middleman?

An agent acts on behalf of a principal to facilitate transactions, typically earning a commission without taking ownership of the goods. In contrast, a merchant middleman buys and sells goods on their own account, taking title and assuming the associated risks. While agents focus on connecting buyers and sellers, merchant middlemen are directly involved in the buying and selling process. This fundamental difference impacts their roles in the supply chain and how they earn revenue.


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