Wholesale broker

A wholesale broker brings buyers and sellers together and earns a fee or commission for arranging a transaction. The broker usually does not take ownership of the goods; payment, delivery and responsibility for problems depend on the agreed arrangement.

The broker may locate a suitable supplier, negotiate commercial terms and help coordinate the sale, particularly where buyers lack contacts in a product category or overseas market. Payment can come from the buyer, seller or both, so the parties should understand whom the broker represents and how its commission is calculated.

For example, a broker could introduce a retailer to a supplier with surplus branded goods and receive a percentage of the completed sale. If the retailer pays the supplier directly and the broker never purchases the stock, the broker is acting as an intermediary rather than a merchant wholesaler.