Wholesalers can be classified into three types. The first type are known as ‘merchant wholesalers’ who buy the products in large quantities, store them for some time or until they are sold. They take the actual title of the goods. Their customers are not end users; they sell to firms and other wholesalers. The second type is called ‘manufacturer’s agents’ which are firms owned by the manufacturing companies but they are considered to be a separate entity from the manufacturing firm. Their purpose is to distribute the goods of the manufacturer. The third type of wholesaler is ‘Broker’ or an agent who works independently and does not take the title of the goods. They just assist in the negotiation process in selling the goods and their profit is the commission they get.
