Question

Where are the intermediaries located? And how much monetary value do they add?

Answer 1

Intermediaries put buyers and sellers together without taking ownership of the merchandise, service or property. They act as go-betweens.

Types of Intermediaries: -

1. Agents and Brokers

Agents and brokers are nearly synonymous in their roles as intermediaries. In fact, when it involves land transactions, they're synonymous to any client, despite the differences within their roles in the industry. In most cases, however, agents function an intermediary on a permanent basis between buyers and sellers, while brokers try this on a brief basis only. Both are paid in condition for every sale and don't take ownership of the products being sold.

In addition to land, agents and brokers also are common within the agency. Companies routinely use agents and brokers when importing or exporting products across the border.

2. Merchant Wholesalers and Resellers

Merchant wholesalers, which also are simply called wholesalers, buy products from manufacturers in bulk and so resell them, usually to retailers or other businesses. Some carry an in depth range of various products, while others specialise in some products but carry an oversized assortment. they will operate cash-and-carry outlets, warehouses, order businesses or online sales, or they will simply keep their inventories in trucks, and trip their customers.

3. Distributors and Functional Wholesalers

Also called functional wholesalers, distributors don't buy products from the producers. Instead, they expedite sales between the manufacturer and retailers or other businesses. Like agents and brokers, they'll be paid by commission, or they'll be paid in fees from the manufacturer.

4. Traditional and Online Retailers

Whenever a consumer buys a product from anyone apart from the corporate that produces it, the buyer is addressing a retailer. This includes corner stores, shopping malls and e-commerce website. Retailers may buy directly from the producers or from another intermediary. In some markets, they will stock items and get them only after they create a procurement, which is common for many bookstores today.