The wholesaler's role in the marketing channel: Disintermediation vs. reintermediation

Abstract

The demise of wholesalers as a major distributive institution in marketing channels has been predicted for many decades. The advent of internet-based electronic commerce has been predicted to accelerate the demise of wholesalers through a process of disintermediation. But reality has not conformed to these prognostications. What appears to be occurring is a reconfiguring or realignment of wholesalers in distribution channels, sometimes referred to as reintermediation. This article examines several underlying paradigms that may explain why wholesalers as a major distributive institution (will) continue to play an important role in marketing channels.