Aggregator Business Model: Simplifying the Buying and Selling Experience

Today’s digital evolution has changed the way of buying and selling things. All these are making the Internet the primary marketplace for any kind of services and products. So, many online businesses are emerging day to day. 

The technical revolution has also paved a new way to an online aggregator and marketplace business model. These business models have disrupted traditional marketplaces and transformed industries ranging from e-commerce to ride-hailing, making it easier for consumers and businesses alike to engage in transactions. 

Most people thought both the marketplace model and the aggregator model are the same. But it’s not. In this blog post, we will explore how aggregator business models have simplified the buying and selling experience.

What is an Aggregator Business Model?

At its core, an aggregator business model involves creating a platform that brings together buyers and sellers in a single platform. The aggregator acts as an intermediary, facilitating transactions between the two parties. 

The platform typically provides features such as product or service listings, search and discovery tools, communication channels, and payment processing capabilities. 

Examples of aggregator business models include e-commerce platforms like Amazon and Alibaba, ride-hailing services like Uber and Lyft, food delivery platforms like Grubhub and DoorDash, and meat delivery platforms like Licious, etc. 

The aggregator model can be followed for any kind of business. A few people mistakenly understood that both an aggregator and marketplace model is the same. So, let’s understand the difference.

Difference Between Aggregator and Marketplace

In this part, we’ll analyze the difference between the aggregator and marketplace models. The following table clearly emphasizes the nuance and uniqueness of each business model.

Feature	Aggregator	Marketplace
Business Model	Acts as an intermediary between multiple sellers and buyers, consolidating information and services from various sources.	Provides a platform for multiple sellers to directly connect with buyers and conduct transactions.
Product/Service	Provides information, options, and comparisons from multiple sources to help users make informed decisions.	Facilitates transactions between buyers and sellers for products or services.
Ownership	Does not own or sell any products or services but earns revenue through fees, commissions, or advertising.	Does not own or sell products or services, but earns revenue through fees, commissions, or transaction charges.
User Experience	Focuses on providing a unified user experience by aggregating information and services from multiple sources.	Provides a platform where buyers can compare and choose from multiple sellers based on price, quality, and other factors.
Trust & Safety	Relies on the trust and reputation of the sources of information and services.	Establishes trust and safety measures by verifying sellers, managing reviews, and enforcing policies.
Examples	Travel aggregators like Expedia, Kayak, and Booking.com.	E-commerce marketplaces like Amazon, eBay, and Etsy.

Most entrepreneurs are showing their interest in creating a new platform like Amazon, eBay, or any other marketplace. However, the aggregator business model is also a successful and proven way to gain more revenue. 

As a top mobile app development company, we have the responsibility to make awareness about the aggregator model and guide entrepreneurs on the way to accomplish such a platform. Let’s dive deeper.

Workflow of Aggregator Business Model

The model can simplify the process of buying and selling things alongside plotting a profitable way for the business owner. Let’s check how the business model evolves in the eCommerce industry.

Both marketplace and aggregator models connect customers, stores, delivery persons, and the admin using mobile app and web app solutions. 

But, the aggregator mobile app/ website doesn’t list the name of the seller; instead, the platform only lists the products. When a customer orders a particular product, the nearby seller will be notified and requested to deliver the product. Here, the delivery will be taken care of by delivery persons. 

Once the customer receives the end product, they can relieve the product review. As the customer didn’t know the store name, they can’t leave a review for the particular store.

So, there is no competition between the sellers to acquire huge reviews and revenues. All sellers who participate in the aggregate can get an equal chance to get orders, as the order allocation will be done based on “Location” which means, the nearby seller for a customer will get the order when the customer orders a product. Customers can also order and get products easier than in a marketplace. Let’s check how. 

How Does It Simplify the Buying Process?

In an online marketplace, there will be an ‘n’ number of sellers for a particular product. Each seller promotes and markets their things in a unique way. So, the possibility of getting confused is high for an end-user, when choosing a product to buy.

But when it comes to the aggregator model, there is no need for multiple seller IDs and promotions for a single product. So, the end-users can order particular products with just a few taps. 

In some cases, the seller in the marketplace has been providing reviews for their products themselves through fake profiles that are not reliable reviews. But in the aggregate model, there is no need for duplicate reviews also. So, the reliability will be increased for your platform from the end-user side.

Overall, the aggregator model reduces the complexities of the buying process. 

Stress-free Selling Process

While simplifying the buying process, the aggregator model also eases the process of selling. The competition between sellers is minimal with this model. And, the sellers need not promote their sales with lots of money. So, simply they can register themself and list their products for sale. 

From the seller’s side, they have to be reliable for a quality product. As an entrepreneur, you have to tie up with only reliable merchants to provide quality products. By connecting the customer and seller, as the owner of the aggregate, you can gain commission. That’s all.

Now you need a mobile application as your primary digital space to connect sellers, customers, and delivery partners. 

Developing a mobile application for this business model will be beneficial in all aspects. Are you hesitant to choose mobile app development due to the high cost and time running process? If your answer is “yes”, then you have to know that, you can easily obtain a mobile application, by choosing customized readymade app scripts.

Effective Solution

SpotnEats is a ready-to-use and customizable app script that can be modified for your aggregator business model. As SpotnEats is a proven app script, you can rely on it for success. To know about our product, contact our experts now.