What does disintermediation refer to in marketing?

Disintermediation refers to the process of eliminating traditional intermediaries in the distribution channel and opting for direct distribution methods instead. This approach allows a company to sell its products or services directly to the consumer, thereby removing the need for middlemen such as wholesalers and retailers.

By bypassing these intermediaries, businesses can achieve several advantages, including reduced costs, increased control over the customer experience, and enhanced profit margins. Additionally, disintermediation reflects a shift in consumer behavior, where customers increasingly prefer direct interactions with brands, often facilitated by digital platforms. This direct-to-consumer model has gained considerable traction in various industries, especially with the rise of e-commerce.