What is Disintermediation?
A definition of Disintermediation
“Disintermediation is the process of removing intermediaries from a supply chain or transaction, allowing producers to sell directly to consumers. This can reduce costs and improve efficiency for businesses involved.”

Business Glossary > What is Disintermediation?
Examples of Disintermediation in a Sentence:
Disintermediation allows companies to sell directly to consumers.
With disintermediation, farmers can sell produce directly to buyers.
The rise of online marketplaces has fueled disintermediation in many industries.
Why is Disintermediation Important in Business?
Disintermediation is important because it can significantly lower transaction costs and increase efficiency, enabling businesses to reach consumers directly. It fosters innovation and competition, as companies streamline operations to eliminate unnecessary middlemen.
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Associated Terms
Here are some associated business terms and synonyms for “Disintermediation”:
- Direct Selling
- Cutting Out the Middleman
- Decentralized Commerce
Amazon Disintermediation
Amazon has been a major force in disintermediation by enabling manufacturers to sell directly to customers through its platform, bypassing traditional retail channels. This approach has revolutionized how products are distributed and purchased worldwide.
Final Notes on Disintermediation
When considering disintermediation, businesses should evaluate the potential benefits of cost reductions against the challenges of managing customer relationships directly. They must ensure they have the necessary logistics and support systems.
This has been a definition of Disintermediation meaning.
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