If I'm selling a product, I can either take on distribution on my own (no dealerships, self-serve) or partner with resellers (dealerships). With the former, I

If I'm selling a product, I can either take on distribution on my own (no dealerships, self-serve) or partner with resellers (dealerships). With the former, I control the entire sales UX and receive a higher price. If we're talking physical goods, I do have to spend more effort getting my product out there for people to inspect, try, etc. With the latter, I'm outsourcing sales to someone else. They have to procure the land, build the showroom, etc. I as the product maker just need to dump my products on them. That person receives a cut of the sale. Assuming I have my understanding above right, I see the following factors challenging the dealership/reseller model: * The product doesn't need to be physically inspected anymore. Much like the purchasing behavior around an iPhone, if the customer can easily grok what's going on a webpage _and_ easily return it, they are more open taking a leap of faith sight unseen or "less seen". At this point, the reseller model brings friction into the process. * The product is so in demand that the reseller accumulates leverage and starts to upcharge which OP's video is related. The product maker has no control over these premiums. In a high volume low margin business with added pressure to eke out anything, the product maker begins to wonder. * Due to high real estate costs, the reseller underserves certain geographies.