What are the pros and cons of the aggregator-website …

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    Here I have an excellent site where you can find your answers. Aggregator Business Model. What is it and how does it operate?

    I would say that this business model can work just fine. It collects products and suppliers under one hood and that is convenient for the customer. Of course the pricing of the aggregator services should be modest and it should lead to more business for the suppliers.

    No pressure, no forcing, no directives, no insane pricing. Ok, then the aggregator model seems fine to me.



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    An online marketplace is basically an eCommerce website or an application which organizes the products and services of different companies/sellers and sell them on its own website. The Aggregator Business Model usually organize an unorganized and populated sector like hotels, taxis, etc. and provide their service under their brand. Aggregators, just like a marketplace, are brands which provide goods/services under their own name.


    – In aggregator, prices are not determined by the sellers. But in marketplace, parters decide their prices. E.g. Faasos Vs Swiggy

    – In aggregator, Goods/Services are sold under the name of aggregator.

    – In aggregator, all partners working with aggregators perform under one brand, i.e. aggregators’s brand while in marketplace, brand image of partners(who sells) also matters. E.g. Hotels.com is marketplace, Oyo is aggregator.

    – Aggregator are more focussed on quality as their direct brand name is involved. But In marketplace, different partners have different product qualities. E.g. Faasos Vs Zomato.

    – Unline in marketplace, while shopping from aggregator, customer can’t choose sellers. E.g. Amazon(marketplace), Urbanclap (Aggregator); Hotels.com Vs Oyo.com.

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    There is a famous notion which says that

    “It isn’t necessary that what has worked for someone shall work for all. “

    Going by the same, aggregation based business models are very convinent and most risk free business models to invest into and this may be the reason why there are so many angel investors and startup backers who invest into agrregation based model, as the overall upfront investment and risk is considerably low. When it comes to product or manufacturing based companies investors shall not back them unless and until their business model has not been successful and that their is a safe,secure and guaranteed investment for them.

    As for the aggregation based model or for any business or business model as a matter of fact, success shall largely depend on your strategy, business process and more importantly your implementation and leadership abilities to execute the same. Your strategy or you business process may be too good to fail but if you are not able to execute the same properly then you are bound to fail. Investors don’t invest into business they invest into leaders.

    As for business that have failed in aggregation based model, the list may be very lengthy. There are many many IT professionals and entrepreneurs who have badly failed with their startups trying to be next flipkart, snapdeal or ola. This is when I say what has worked for one will not necessarily work for the other. Google around and look for failed startups stories and you shall get your list.

    Again an entire business segment/domain like food technology and hyper-local business market is about to get wiped out of India. You can study about the current state of food tech companies like foodpanda, zomato etc they are all aggregation based business and all are running into losses with many of them shutting down partially or completely or getting out of business through merger and acquisition route.

    All the best.


    Sanket V Garg

    [email protected]

    You may mean “aggregator,” Miguel. An aggregator is a business that doesn’t produce product, but gathers products or information from different sources and presents them on its website. So, for example, Amazon is an aggregator, as it provides an opportunity for many different businesses to sell on it. So, one might claim, are news sites like the Huffington Post, and other “Infomediaries.” Specialized aggregators sweep the web for deals on cars, for example, real estate agents, and even medical services.


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    Revenue from

    1) First generation brand engagement products. brands Tory Burch and Diane von Furstenberg to Coach and Nike — that are coming to Polyvore to generate excitement and launch new products to their community.

    2) Secondly, whenever users sets, they can click on any item in the set and click directly through from Polyvore to the retailer’s website directly to buy it. For those partners who have formal affiliate programs, Polyvore gets paid a commission on transactions originating from our users.


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    The terminology “business model” is usually connected with revenue generation and I hope that’s what you mean, because I’ve only used that term in business.

    The two that can work is advertising and subscription. In both cases, if you aggregate or “curate” good content that is focused or timely and have a dedicated audience, you can generate quite a lot of advertisement. Just a single advertiser posting a splash advertisement can generate up to $1000 a week in advertising revenue.

    Likewise, a subscription model is present, but this model tries to adapt to the online newspaper and web content folks. It’s not a princely sum and you have to about 1,000+ subscribers to make this work depending upon how well known you are. If you are a stock analyst or economist, you could generate subscription fees of 1-5k/year.

    In summary, there are revenue opportunities in aggregation or “curation”

    Richard Hom Connect on LinkedIn

    There are a number of possibilities, including models based on advertising, subscriptions, or premium services. The most likely, however, is big-data analytics and research.


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    There are certain sites out there that offer “sponsored listings” in their news aggregators. As in, if the NYT would certainly want to see a certain article included there for the traffic. But you’d need a lot of traffic for that beforehand to make your site an attractive possibility for advertisers.


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    The key distinction of an aggregator is that it aggregates from multiple sources. This makes the aggregator an interesting entry point because the scope it covers is broader than any source by itself.

    The challenge for the aggregator is then to provide quality in the experience. Only then will users stick with it. For example in the news curation space where I work in, providing quality includes in no particular order:

    • Applying artificial intelligence to really understand the interest of users.
    • Applying machine learning to a corpus of information that by and large changes in full every 12 hours.
    • Maintaining a sense of serendipity, and avoiding filter bubbles.

    Problems such as these are not trivial to solve, and thus provide a barrier to entry.

    Another way to reach high quality is to cater to very specific audiences. In this case, the quality is a result of the specific focus of the aggregator which is perceived to be more tailored to specific users’ interests.

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