A businessman appoints a person to buy and sell goods on his behalf and gives him the right to borrow money on the security of goods. That person is called mercantile agent.

A Broker is one who bargains for another and receives commission for his service. He is paid 'brokerage' for his services.

The term 'Middlemen' refers to all those who are in the link between the primary producer and the ultimate consumer in the exchange of goods or services.

The following are the characteristics of wholesalers :
1. The wholesaler buys goods directly from the producers or manufacturers.
2. Wholesalers buys goods in large quantities and sell in relatively smaller quantities.
3. Wholesaler sell different varieties of a particular variety of product
4. They employ a number of agents or workers for distribution of products.
5. They need large amount of Capital to be invested in his business
6. They generally provide credit facility to retailers.

A factor is a mercantile agent to whom goods are entrusted for sale by a principal. He takes physical possession of the goods, though he does not obtain ownership of the goods. A factor sells goods in his own name without revealing the name of his principal.

The services rendered by retailer to the consumers as follows:
(i) Regular supply of goods :
(1) Retailers maintains a ready stock of various products of different manufacturers for sale to consumers.
(2) This enables the buyers to buy products as and when needed.
(ii) New products information:
The retailers provide important information about the new arrival of products through their personal selling efforts and effective display of products.
(iii) Credit Facilities :
Sometimes retailers provide credit facilities to their customers and enable them to increase their level of consumption.
(iv) Wide Selection:
(1) Retailers generally keep stock of variety of products of different manufacturers.
(2) This enables the consumers to make their choice out of wide selection of goods.
(v) Miscellaneous service
(1) Retailers provide free door delivery services to the customers.
(2) They provide after sales service to customers.
(3) They allow cash discount on their sales.

Retail trade is a trade that deals with the distribution of goods in small quantities to the end consumers. A retailer has been defined as "a trading intermediary engaged in the distribution of goods to the ultimate consumer".
Following are the characteristics of retail traders :
(i) Retailer generally involves dealing in a variety of items. A retailer makes purchases from producer or wholesalers in bulk for sale to the end consumer in small quantities.
(ii) Retail trade is normally carried on in or near the main market area.
(iii) Generally, retailers involve buying on Credit from Wholesalers and selling for cash to Consumers.
(iv) A retailer has indirect relation with the manufacturer (through wholesalers) but a direct link with the consumers