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