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Intermediation definition

What is intermediation? 
Intermediation is the process of creating a new or online middleman. Intermediation can also be a form of "outsourcing," as when a vendor performs a task for a customer that is not a core-competency of that customer.

Online auction sites like eBay are intermediators. For consumers, an intermediator is a new middleman. Before the Internet, consumers had few choices for exchanging information and products. The breadth and depth of the Internet provides consumers with a new, wider marketplace.

For most businesses, intermediation has existed but has been inefficient. The Internet provides a method of providing an efficient market for the exchange of goods and services. 
Brain Trust contributor: Author of The e-Commerce Question and Answer Book
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