Okay! So is disintermediation a myth or not? Before anybody takes umbrage to the position I took in my last articles "Chicken Little and the new Disintermediation Myth!" and "Why the Sky Won't Fall on VARs", let me again set the stage by restating my position.

It is my belief disintermediation - for the most part - is a myth but that's not to say in an e- perfect world, it doesn't have its merits or that businesses still won't continue their efforts to effectively bring it to fruition. After all, to improve the business model by eliminating an entire channel of Value-Added Resellers [the Middleman] makes a whole lot of sense in streamlining the selling process, cutting costs and increasing profitability. Who could argue with that?

In my opinion, anyone! The Internet and e-commerce have been around long enough for us to see they haven't had the impact on traditional buying practices predicted by the experts. Why? Because, as I said in my last article, e-commerce, in and of itself, lacks the human-comfort-quality needed by most buyers in most industries to make a sale. In simpler terms, the Internet lacks a face.

That's not to say, however, there aren't many successful companies that stand out as icons for how to do business successfully on the net. Cisco, Staples, Amazon, Dell, SalesDriver.com are just a few that have clearly found a way to put a round peg in the proverbial square hole.

So how have they done it? By combining the best parts of both mediums in a Two-Step approach expressly designed to placate the genuine discomfort of those reluctant to making an e-change in traditional buying practices. Let me explain.

Few will dispute customers buy only from People and Companies they trust. The prime directive in selling is and has always been to engender rapport and trust between the seller and the buyer. Without them, one inhibits the chance for a sale and/or at best, is quickly relegated to a large group of non-distinct providers who in the end are differentiated only by price. Rapport and trust inarguably transcend focus from price and promote long term mutually rewarding relationships.

How is it done? In person - face to face [B2B] and therein lies one of e-commerce's biggest challenge. It has no Face!

If today I decide to buy a new computer over the Internet, I, like most of you, know exactly what I need and understand, feature by feature, what the new computer will and/or won't do. After all, the inner-workings of most computers are made of identical components. So making an e-purchase should be a simple exercise in finding the best price.

"Why then am I reluctant? As I pointed out in my last article, it's not because I'm afraid to give out my credit card - I am not. I still won't give out personal information like date of birth or my SIN number. [Usually not needed for credit card purchases this small anyway].

Why then do I not buy? Well, despite the fact there is a comprehensive three-year warranty on the product, there is, nonetheless, still no face, no relationship and no one to champion my cause should my computer fail. In simpler terms, I want to know that should I encounter any difficulty with my purchase, I can call up [ie] Tony - the same Tony in whom I trust, who said before I purchased, "I'll take care of you!" - and he'll rectify my problem.

Whether it's something small personal or something large corporate, the psychological, human behavioral, motivational factors are at play in the rapport / trust-building stage and walk in lockstep with risk and comfort - the wall, so to speak, that separates both worlds and the buying practices therein.

At the risk of beating this point to death, car companies have taken great pains in taking the risk out of car buying over the net. Their kimonos are open wide ensuring customers are never lacking any detail necessary in making an informed, comfortable decision.

Complete bumper-to-bumper warrantees backed by reputable companies like Ford, GM and Chrysler, for example, should reconcile any trepidation an e-buyer may have, shouldn't it?

Why then will most people still buy their car at the dealership? Because they know that Tony - the same Tony in whom they have trust, who said before they purchased, "I'll take care of you!" - is a real face in a real place, ready to champion their cause, take ownership and rectify any problem.

The lesson here is not so mysterious. Successful e-marketers understand the success of e-commerce and the reciprocating benefits to both consumers and suppliers are integrally linked to the introduction of the program using a B2B strategy designed to address the human need for buying comfort. They need a face!

Any e-trepidation all but evaporates the minute consumers are satisfied they are not alone in net transactions. Accountability-comfort still goes right up and down the entire food chain especially when one considers the negative outcome potentialities should the product purchased, for example, be the reason an entire corporate network crashes.

For these reasons, I believe, the middleman [VAR] for the foreseeable future is safe, and, disintermediation will most certainly go the way of the dodo. The fact is, customers will always demand good service and support, which in practice, rarely comes from circuits or microchips but rather in flesh and blood - and a FACE!

The Bottom Line: Successful e-commerce companies continue to rely on the traditional time-tested and proven methods of B2B marketing as a first step in implementing a more comfortable, profitable and efficient e-solutions model…and they are inclined to give short shrift to any talk on Disintermediation!


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