Disintermediation

What is Disintermediation?

Disintermediation is a fancy word for cutting out the middleman. It's the process of removing intermediaries from a supply chain or a transaction. For example, when a manufacturer who used to sell through distributors and retailers decides to start selling directly to consumers from their own website, that's disintermediation. The rise of the internet has made this much more common. While it can lead to higher profit margins and a direct customer relationship, it can also create conflict with existing channel partners who feel they are being pushed aside.

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