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That's not a truism. If manufacturers only sell DTC (direct to consumer) and don't allow third party sellers to compete they do so for two reasons, price control and brand control. The lack of competition between third party sellers allows them to sell at any price the market will bare since they are the only ones you can buy the product from. When third party sellers can distribute/sell the product as well and there is no enforced MAP (minimum allowed price) it leads to a race to who is willing to accept the smallest margins on the sales, which in turn makes it purely a who can do the most volume with the best marketing. This actually results in the lowest prices for consumers.





> allows them to sell at any price the market will bare since

This doesn't make any sense though, as an argument.

If I am selling to 3rd parties, it is also true that I can set whatever price I want.

So, if I set the price to 5$, no 3rd party will be reselling my product below 5$. So I can still set the price...


The marginal price isn't constant. Third party sellers can buy large quantities for cheaper unit prices. It's essentially the manufacturer decentralizing their inventory risk and outsourcing the costs of dealing with a ton of individual consumers.



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