Wholesalers can be classified based on whether they do or do not become the owners of the products they sell. By ownership we mean that title (i.e., legal ownership) has passed from the party from whom the wholesaler purchased the product (e.g., manufacturer) to the wholesaler. It also means the wholesaler assumes any risk that may arise with handling the product.
- Do Take Title – Wholesalers taking title own the products they purchase.
- Do Not Take Title – Wholesalers who do not take title are focused on activities that bring buyers and sellers together. Often these wholesalers never physically handle products.