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by jimnotgym 78 days ago
A very astute comment.

While the service providers are experiencing massive growth they are happy to share. When growth plateaus they will go after every cost reduction, including squeezing out non-value added resellers. Especially those with warning letters from the FDA for making false claims, as noted below.

As a distributor your value add was always making me markets. Once made, those markets are now trivial to take direct unless there is some advantage to having a local take a risk on stock- holding. I have worked in distribution and seen Amazon refuse to deal with the distributor and go direct as soon as they see decent sales, for instance.

2 comments

he's making 400M+, so not a big deal, the distribution leverage is massive and now it's time to pivot and add real value appart from the huge brand he has now, i.e. through a unique customer support or who knows what. anyways, after 400M, one can say he already won the game
but this is the opposite right? they own the customer relationship. Amazon does the opposite. They control the customer relationship. Can the supplier raise prices possibly but so can they middle man. if they turn over the relationship to the provider then use bad business.