What is middleman trade?

Middleman trade refers to a transaction process where intermediaries, or middlemen, facilitate the exchange of goods or services between producers and consumers. These intermediaries can include wholesalers, brokers, or agents who help connect buyers and sellers, often adding value through services like distribution, marketing, or negotiation. This type of trade can streamline the supply chain, but it may also increase costs for consumers due to the added layer of participants. Overall, middleman trade plays a crucial role in making markets more efficient by enhancing accessibility and reach for products.