Is Wholesale Over? The Death of the Middleman
Companies like Warby Parker are changing the agen poker resmi.
Buying directly from a supplier can save money.
The internet has reduced the need for physical retail stores and wholesalers.
Amazon is a retailer, while eBay is a wholesaler.
The internet didn’t invent the idea of cutting out the middleman. But it has certainly facilitated the growth and practicality of the practice. After all, the lack of a retail markup makes products less expensive for the end-user (and potentially more profitable for product makers).
Mobile apps, in particular, provide a convenient and familiar way for end-users to sample products and learn about new trends and applications in ways that were once the sole province of retail stores. Spring, for example, offers the ability to browse more than 700 brands and order with free shipping through a single app.
No wonder, then, that Business of Fashion notes the likelihood that 30% or more of the total retail economy will be conducted online by 2025, which means that much fewer people need to go to actual retail stores. Indeed, Gap’s closing of 175 stores was attributed to online shopping, as reported in The Washington Post.
If physical stores are no longer essential to the customer experience required to market your products, you no longer need wholesalers to distribute your products – and retail locations no longer add to the cost for the end user. Another advantage, as pointed out by Neil Kokemuller in Azcentral, is environmental: “By minimizing the number of trucks and travel time moving products from one step to the next, you reduce the pollutants in the air.”
What is the role of the middleman?
Middleman is a term that we’ve heard all our lives, but what is it exactly? What do they do, and why were they once so important to commerce?
According to Investopedia, a middleman is an intermediary in a supply chain or transaction. Wholesalers are a type of middleman. Wholesalers buy products from a manufacturer and then sell them to retail outlets.
There are three basic types of retail businesses: Those that manufacture their own products, those that purchase the products directly from the manufacturer, and those that purchase products through a middleman or wholesaler.