Getting to know the Aggregator Business

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Getting to know the Aggregator Business

Aggregator Business Model is a business model e-commerce network where companies are known as aggregators, bringing together information and data about the goods and services offered by competing providers. Aggregator makes the provider its partner and sells their services or products under its own brand by signing a contract between the company and the aggregator. Aggregators always have no manufacturing structure or warehouse. It relies on its ability to market its partners win-win by creating a single domain that offers uniform quality and price, delivering to users. How the aggregator business model works connect providers and offers partnership plans. After that, the company and the provider sign a contract to become a partner and after that create a network of partnerships. Aggregators invest in great marketing strategies to promote their brand. Users interested in the promise of aggregators buy through its platform. An aggregator’s revenue stream is a commission because the aggregator provides customers to partners, then the partner pays a percentage of his or her income. Therefore the partner provides a minimum price and the aggregator will give the total price to the customer. The value proposition to the end customer, the buyer, can be summarized in time, money, convenience and security. It is much more convenient for users to browse websites to be able to compare prices. Aggregators also increase the chances of finding the best deals and customers can feel safer by looking at reviews and ratings about providers. There are many similarities between the aggregator’s business model and the marketplace business model. Aggregators and marketplaces connect vendors and buyers together on the same platform and the services are pretty much the same. Nonetheless, some differences can be easily identified as follows: – Aggregator does not make users interact freely on the platform. Instead, it is the aggregator who continues to interact with the parties involved.- Marketplace has a platform that allows sellers to promote their goods or services. Aggregators have a network of partners organized under their own brand network. All services or goods are provided under the same name. – On marketplaces, providers are responsible for all product details, quality, price, delivery process etc. – Aggregator sets different providers under one standard. The terms and conditions, including the price, are all determined during the contract. Aggregator refers to a website or software and collects certain types of information from various online sources. Here are the types of aggregator models: – Content, aggregators collect news and updates from several online sources. – Jobs, collect job posts from various career sites and company listings. Polls, collect the results of polls conducted by various organizations to estimate public opinion. Real estate, they put together a list of multiple real estate sources, making details and property prices available. – Reviews, they collect reviews of entertainment businesses, such as books, games, TV shows or movies. Search, they are search engines that collect results from many search engines. – Social networking, they are websites that collect content from various social networking sites. – Shopping, they collect results from different shopping machines, displaying price comparisons and ratings. – Videos, combine video content from multiple websites and group it into lists. A common example of an aggregator is Google, Google is a search aggregator. Google collects data across multiple industries and then uses it to present search, consumer and data that customers are looking for. Google indexes the web and then monetizes it by providing an opportunity for companies to be on page one in exchange for payment. Another example is Uber, Uber is an aggregator business model in the public transit industry. Uber takes the service from drivers and gives customers to them in exchange for a commission. Uber has become the most influential taxi booking app. The company employs drivers who bring their own taxis and drivers using their personal cars. Uber has no employees and employs these drivers as service providers and gives them a platform where they can get more customers. Uber gives drivers about 20-25% in commission and also earns revenue through promotional partnerships.

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