Why do suppliers of goods and services still rely on the services of middlemen?

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Middlemen are an important aspect of the distribution process. They connect sellers to buyers and earn commissions for their efforts. Middlemen take products and services closer to the customer and provide the products in quantities required by the consumer.

Suppliers continue to rely on middlemen to get their products to the market effectively and efficiently. Agents understand the market better because they receive direct exposure and feedback from stakeholders. Suppliers transfer the costs and risks associated with product handling to the middlemen, giving producers adequate time and resources to focus on the core business. Middlemen store products and ensure consistent availability in the market. The supplier benefits because inventory is controlled and supply pressure is reduced during periods of high demand.

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