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The marketplace business model is basically a website or mobile application which contains different products from multiple vendors and allow sellers to promote their business in one vast platform. The marketplace model acts as a bridge by connecting sellers and buyers in one platform and does not own any products of their own. E.g.: Amazon, Flipkart, eBay, etc.
The aggregator business model is basically a network model which organizes the related unorganized service providers in one huge platform under one brand name. This platform also connects service providers with their customers but under one brand.The example includes cab aggregators and bus aggregators like Uber, Ola, redBus,etc.
Aggregator vs Marketplace
Although these two platforms share many common aspects, they have some differences as well based on the way how they serve customers.Let’sdiscuss the variations of the aggregatorbusiness model andmarketplace business model.
1. Brand Name:
The marketplace model has a brand but in that multiple vendors sell their products under their own brand names.
For instance, Amazon is a brand of marketplacemodelbut in that, the multiple sellers sell their products with their own name.
But in Aggregator model, all services are provided under one common brand name.
As an example, Uberis a brand of the aggregatormodel.In Uber,multiple serviceproviders(car taxi) are agreed to provide services underthe brand name, Uber.
2. Partnership Model:
The admin in marketplace model does not own anything and earns income by providing the platform to different sellers. They earn commissions by getting buyers toa commonplace (website).
The multiple vendors inthemarketplace business should be responsible for all product details, shipping process, etc.
Intheaggregator business model, service providers are not employees of the business and they have full freedom to reject or accept theorder forservice.Swiggyis one such example that connects restaurants with theaggregatormodel.
Since the aggregator platform organizes the related unorganized services in one common place, they earn profit by attracting more customers to use their platform to avail those services.
3. High Quality:
In the marketplace model, multiple vendors are selling different products to different buyers. Therefore, there will be a change in quality. Because similar products are provided by different vendors which may have different qualities in products.
In the aggregator business model, the brand name is the identity and the aggregatorbelievesin producing standard quality. Hence, the service providers should provide quality service to the customers and the providers would satisfy the terms and conditions as promised and signed during the contract.
4. Standard Price:
As already stated,themarketplace hasmultiple vendors selling different products, the price of the same product will vary from vendor to vendor.The customer can compare products from different sellers and can purchase the necessary things.
But intheaggregator model, since all servicesprovidedunderacommon name, the price isstandardized. The providers who are near to customers can take the order.All service providers are agreed to this term when signing the agreement.
Summary
Even though theaggregator and marketplace business modelhasdifferent features, both of them connects the vendors and buyers together on a common platform. The customer service is nearlythesame and good in both the marketplace and the aggregator business model.
If you are interested inthemarketplace model and marketplace aggregator model, then you can try Purchase Commerce which is an advancedmulti-vendor marketplace platform. Purchase Commerce is built on top of the latest technologies keeping in mind the booming marketplace needs to build your dream platform with a profitable business model.
