I can understand that feeling, but honestly this is very little different than a normal retail market if you think about it.

A distributor buys product from a manufacturer because they have access channels to that manufacturer that you do not. They then take that product and resell it at a 40 - 50% markup (sometimes more depending on the commodity) to a retailer who then marks it up again and sells it to the general public. Sometimes the distributor is cut out of that chain by the retailer, but someone is still a middle man between you and the manufacturer.