Difference Between Marketplace and Aggregator E-Commerce Model

Difference between marketplace and aggregator

Aggregator and Marketplace Business Model

Aggregator and Marketplace both eCommerce business model has similarities, differences, and pros cons. Though Both connect vendors & customers and do business online.

Both the Aggregator and the Marketplace platforms connect vendors and customers. Customer service is also the same.

In Simple if we say, Partners dealing in the marketplace provide products/services under their own name. The marketplace only acts as a platform. Aggregators provide products/services at a standardized price and quality. The same product is for the same price, unlike the marketplace where the same product is provided for different prices.

Marketing Difference Between Aggregator and Marketplace

Deal aggregators generally publish affiliate links where consumers hit a link and are taken to another site (like Flipkart and Amazon) where checkout occurs on another site and the aggregator gets a cut of the sale. 

While marketplaces are where a vendor will sell their deals direct to consumers and give a small cut to the marketplace (like Flipkart and Amazon) or the payment processor (like PayPal, PayU, Paytm, CCAvenue and all).

Marketplaces can leverage deal aggregators to get additional exposure; however, marketplaces could not list affiliate deals like aggregators do. 

Aggregator Business Model

Aggregator Business Model

Aggregator business model is basically a network model that 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.

 

Marketplace Business Model

Marketplace business model is basically a website or mobile application which contains different products from multiple vendors and allows 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.

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