The Leading Source Of Original Research And Insights On Business Model Strategy, Digital & Tech Business Models
What Is Reintermediation? Reintermediation In A Nutshell
Reintermediation consists in the process of introducing again an intermediary that had previously been cut out from the supply chain. Or perhaps by creating a new intermediary that once didn’t exist. Usually, as a market is redefined, old players get cut out, and new players within the supply chain are born as a result.
As this process happens, and the new market is defined by Amazon, new intermediaries, that have learned to play according to Amazon rules will form.
Creating a whole new intermediary
For instance, as Amazon has been figuring out the last-mile problem it also approached it with a new program, launched in 2018, called Delivery Service Partner.
Or simply put, a startup that gets helped by Amazon to become an independent contractor (under the rules of Amazon) that delivers packages for the company. Thus, Amazondisintermediates the old carriers, builds up a new system, which is comprised of new intermediaries.
Yet those will follow Amazon‘s rules and policies.
As those new systems are established though, reintermediation might take place for several reasons. First, it might be the key player, once disintermediating, now to incentivize reintermediation, to gain more control over the market. Second, as the market adjusts to this new reality new intermediaries learn the logic of this new market and try to capture some value within the supply chain.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.