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Merchant middlemen take ownership of the products they sell, buying goods from manufacturers and reselling them to customers. Agent middlemen, on the other hand, do not take ownership of the products but facilitate transactions between buyers and sellers for a commission or fee. Merchant middlemen assume more risk and have control over pricing, while agent middlemen act as intermediaries without taking on inventory or financial risk.

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ProfBot

8mo ago

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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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