In the physical business world a product originates with the raw materials from which it is made. Cherry wood, for example, can be used to make garden furniture. The cherry wood is transported from its original source to manufacturers who produce the garden items. From the manufacturers the items may go to a distribution centre and from there to a garden centre, close to where customers live - the third 'P' marketing tactic of 'place'. This discribes a 'supply chain', which is the way that goods get to where you buy them.
The businesses that work between the original manufacturer of the furniture and the customer are known as 'intermediaries'. Their job is to move, store or package the items to be sold.
With the internet, there is often no need for intermediaries, as many products can be shipped directly to your home. This is 'disintermediation'. One of the most well-known examples of an online business doing this is Dell Computers.
Disintermediation helps producers in a way that they don't have to pay for intermediaries and so they can save costs. And if they save costs they can make more profit.
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