Disintermediation

  • Written by Ganesh Pawar 2 min read
  • Updated: July 21, 2025

What is disintermediation?

Disintermediation refers to the removal of middlemen or third parties from the supply chain, allowing companies to sell their products or services directly to consumers. In ecommerce and direct-to-consumer (DTC) models, this means brands can bypass wholesalers, retailers, and distributors. By cutting out intermediaries, businesses gain greater control over pricing, branding, and customer relationships. It often leads to improved profit margins, faster delivery, and a more personalized shopping experience.

Disintermediation is especially common in digital commerce, where online platforms make it easier for brands to connect directly with their audience.

What does disintermediation mean for businesses?

Disintermediation gives brands full control over their marketing, pricing, distribution, and customer data. It’s especially relevant for subscription and DTC brands that want to build strong customer relationships without relying on third-party platforms like Amazon or big-box retailers.

What is the disintermediation business model?

The disintermediation business model refers to a strategy where companies bypass traditional intermediaries, like wholesalers, retailers, or agents, and sell directly to customers. This is often done using digital channels such as ecommerce websites, mobile apps, or social media platforms. The goal is to build a direct connection with consumers, reduce costs, and gain more control over the customer experience and pricing.

Why is disintermediation growing in ecommerce?

  • It offers higher profit margins
  • Brands get direct access to customer data
  • It improves speed to market and customer feedback loops
  • It enables more control over branding and customer service

Disintermediation example:

A skincare company traditionally sold its products through beauty retailers. Now, it launches its own Shopify store and subscription program, delivering directly to consumers. That’s disintermediation in action, cutting out the retail middleman.

Driftcharge Tip

If you are adopting a disintermediation strategy, investing in user experience, support, and marketing, you are now fully responsible for the customer journey.

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Ganesh Pawar

Ganesh Pawar is the founder of Driftcharge, a subscription management app designed to help Shopify merchants streamline and scale their subscription businesses. With a deep focus on solving real-world pain points—like legacy account page support, flexible subscription options, and advanced analytics—Ganesh is passionate about building tools that drive growth and retention.

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