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eCommerce is all about cutting out the middle men. The only way goods can be sold in shops is if the shop is making enough money. The margin needs to be there t
by heisenbit 9y ago
eCommerce is all about cutting out the middle men. The only way goods can be sold in shops is if the shop is making enough money. The margin needs to be there to support space and people. Which means the distributors can't be allowed to have a big margin - if the had big ones they are tempted to do big sales to the like of Amazon undercutting individual shops. Which makes the role of traditional middle men tough. Also the fewer steps in the distribution the more commercial and contractual power the producer (provided a unique product) has.
It is a war - product brands vs. platform brands. For the former controlling distribution is key.