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disintermediation
(redirected from Cutting out the middleman)

   Also found in: Financial, Wikipedia, Hutchinson 0.09 sec.

The elimination of the distributor and/or retailer (the middleman) when making a purchase. The term is used to refer to purchasing directly from a manufacturer's Web site, the benefits of which are convenience, fast turnaround time and sometimes lower prices. Obviously, retail stores are very much against disintermediation. See reintermediation.


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Esurance, which targets a younger market, has said by cutting out the middleman, it's able to offer a more competitive rate and be a low-cost operator.
Cutting out the middleman by going direct is not such a smart thing to do.
 
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