Explain the distinction between disintermediation and hypermediation as it relates to online retailing.

Disintermediation in online retailing occurs when manufacturers or their distributors build a direct relationship with the consumer and the traditional retail intermediaries or middlemen are eliminated. Hypermediation on the other hand occurs when virtual firms outsource all of their warehousing and order fulfillment functions, creating a number of new intermediaries who would be necessary for these firms to function.




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