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What is an Aggregator Business Model?

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lura hoffer
What is an Aggregator Business Model?

An aggregator company connects with different goods/service providers and sells its goods/services under its own brand. As the aggregator company builds a brand, the goods/services provided have to be in uniform quality and price. The aggregator companies do not hire the goods/service providers, the business is provided to them.

The aggregators provide marketing and customers to the goods/service providers and these providers give their goods/services to the aggregator sites. However, the aggregator sites sell these goods/services under their own brand hence maintaining the brand image. Therefore, this business model is a win-win situation for the aggregator company as well as the goods/service providers as the aggregator sites get the products and the providers get customers without having to spend money on marketing.

How does an Aggregator Business Model Work?

The aggregator firm reaches out to the goods/service providers and proposes a partnership based on several terms. These terms are usually regarding the commission charges and the service uniformity. Then the aggregator firm works upon the brand building and the marketing strategies.

The aggregator firm becomes the public front which means the customers do not have any information regarding the goods/service provider. Customers make purchases through the online aggregators and in this way, the providers get more customers without spending an arm and a leg for the marketing. With each order, the aggregator firm gets the pre-decided commission. Let us have some insight upon the revenue streams for the aggregator business model.

To build your own aggregator script, you must first decide upon a niche that requires an organized approach. After that, you must do enough research on the goods/service providers and how you can provide an online platform to your niche and attract customers. 

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