Are Middlemen Helping Us—or Just Helping Themselves?
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Think you're shopping smart? Think again. From Amazon’s algorithms to grocery store shelves, middlemen are quietly running the show, deciding what you buy, how much you pay, and who actually gets paid. Inspired by Kathryn Judge’s Direct, this article breaks down how the middleman economy really works and why cutting them out could give power (and money) back to the rest of us.
In this day and age, with the press of a few buttons, you can get almost anything delivered to your doorstep. Groceries? Food? That T-shirt you were trying to convince yourself not to get? All within a few days. But have you ever wondered how this is possible? How is the cotton collected, stitched and designed into finished garments in a factory, sent to retailers and then delivered to you? This process is only possible due to the existence of ‘Middlemen’- entities that connect producers and consumers. In modern capitalism, most transactions are mediated, often invisibly, by platforms or financial institutions. In the book Direct, Kathryn Judge calls this the “middleman economy”; a system where convenience is prioritised, but often at the expense of transparency, ethics and community. They not only act as intermediates, but also shape access, pricing, and power. So the question is, are these middlemen serving us- or serving themselves?
So how and why did middlemen become so prominent, almost dominating modern markets? As economies globalised, becoming more connected and interdependent, the distance between producer and consumer grew- physically and socially. The introduction of middlemen was initially to reduce friction: they help us find products, compare options, and manage logistics- making it easier to navigate complexity. Examples include Amazon, which simplifies shopping and delivery; financial advisors, which simplify investing; and Uber, which matches riders with drivers quickly. In theory, they create efficiency and scale, which benefits both consumers and producers.
Judge argues that we became addicted to convenience, and unfortunately, these systems enforced to increase our convenience often obscure harmful practices. Child labour in chocolate supply chains or underpaid workers in fast fashion make us complicit in unsustainable or unethical practices when we purchase products from those industries. Middlemen often inflate prices: pharmaceutical, real estate, and food intermediaries add large markups- wielding data and infrastructure to lock markets and stifle competition, often lobbying regulators to entrench dominance. Not only that, she mentions that intermediaries extract more value than they add. There is the presence of:
Opaque fees - Fees that aren’t clearly explained or are hidden from the consumer, such as Amazon’s referral or listing fees; sellers might not understand how much Amazon is taking from each sale. They let middlemen extract a lot of value without being questioned, because everything is hidden in fine print or bundled in the total cost.
Hidden power - Where platforms start to dictate terms and control key decisions in markets- without the public realising how much influence they have. This can be seen in Google advertising; they decide who sees what ads and when, taking a cut from every transaction. Most users don’t know how targeted ads work or how much money flows through these platforms.
Detachment from outcomes - The middleman is not responsible for the result of the transaction. So if something goes wrong, they don’t have to fix it or even care. This may cause them to act selfishly and be reckless because they profit even if the buyer or seller loses out.
As a solution, Judge proposes the principle “Follow the fees.” Ask yourself, who is profiting from this transaction? And are they actually doing the work? If you can recognise the tell-tale signs, you can reduce the amount by which you’re being exploited.
This is clearly seen in the case covered in the book with Amazon and Seller Dependency.
Amazon provides visibility and reach for sellers. But this service is tainted with the steep platform fees, controlling of search rankings, and may even replicate top products. Sellers are stuck: they need Amazon to reach customers, but pay a price in autonomy and profit. Acting both as a gatekeeper and competitor, intermediaries create the dependency they can then monetise.
So when do middlemen actually help?
Not all intermediaries are exploitative—some genuinely make markets fairer or more accessible. Shopify enables small sellers to run online stores; fair-trade cooperatives connect producers ethically, and ethical fashion practices that curate sustainable brands and inform shoppers about labor and environmental practices. So Judge suggests to support middlemen when they act as 'bridges', not gatekeepers.
Smarter Intermediation, Not Total Elimination
To conclude, here is five principles covered in the book.
Intermediation matters – Middlemen shape outcomes.
Shorter is better – Fewer layers usually mean more accountability.
Direct is best – Where possible, build trust through direct connection.
Follow the fees – Who’s profiting, and why?
Bridges can help – Not all middlemen are bad; some are necessary to scale access.
So for an economy to function, we need Middlemen. But we can demand more transparency, accountability, ethical conduct and regulations to ensure they adhere to these policies. As consumers, we should be more mindful: question convenience, ask who benefits, support systems aligned with community and justice, and as always, stay informed and educated.