What is an aggregator model?

What is an aggregator model?

An aggregator model is a business that gathers many sellers or providers onto one platform, then connects them with customers in a single place.

• In short, the platform acts as the middleman between providers and buyers.
• It also brings choice and convenience to users in one spot.
• As a result, it helps small firms compete with large, well-known brands.

Have you ever visited a site that lists every option you searched for? You may not think much about it. Still, that is an aggregator model at work.

From your favorite shopping site to business-to-business (B2B) deals, this model has reshaped how firms work. In fact, it changes how they serve customers and each other.

It brings real convenience. In addition, it levels the field for smaller players. So it is a win-win no matter how you look at it.

How an aggregator model works

The aggregator model shows up most in e-commerce stores. For example, think of Amazon, Alibaba, Shein, and Lazada. By design, the model partners with merchants and clients. Then it helps them market their products on one platform.

In short, it is a network of many business entities. Often, these firms are rivals who share the same target market.

Examples of the aggregator model

E-commerce sites are the most familiar aggregators. However, the aggregator model spans many industries. For example, it covers outsourcing, jobs, travel, and leisure.

E-commerce marketplace aggregators

As noted above, the e-commerce industry has this model at its core. E-commerce apps work with both merchants and their customers. So they serve two groups at once.

To put it simply, they act as the middleman. When a merchant makes a sale, the platform often takes a cut. Many brands also lean on e-commerce outsourcing to keep up with demand. In addition, sellers use e-commerce platforms to reach these marketplaces fast.

Outsourcing aggregators

For a clear example, we do not need to look far. Outsource Accelerator is a B2B aggregator platform. It caters to global and local business process outsourcing firms.

The platform helps clients find their best match. So they can search Outsource Accelerator’s directory of outsourcing providers with ease. For firms new to this space, B2B consulting can guide the first steps.

Travel and leisure aggregators

Expedia, Agoda, Trivago, and Airbnb are staple travel names. Again, these platforms act as the middlemen. In short, they link travelers, hotels, and airlines.

They offer a marketplace for trips. As a result, customers can pick, choose, and build their own itinerary.

Job and employment aggregators

Job listing sites are another strong example. For instance, Indeed, Glassdoor, CareerBuilder, and the local Onlinejobs.ph are all employment aggregators.

These platforms use the aggregator method for hiring. So firms that look for talent gather in one place. Most of the time, businesses pay for membership to post roles. Many pair this with talent acquisition support to fill roles faster.

Recruiters and job seekers get different experiences. For example, recruiters can view many résumés that applicants upload. Then they search and sift through the pool.

How RPO companies utilize job aggregators to source candidates

Recruitment process outsourcing (RPO) firms use these job aggregator platforms to find talent. Often, they source candidates through the “back doors” of the site. Sometimes, they partner with a platform for exclusive features. To go deeper, see this guide to recruitment process outsourcing in the Philippines.

Recruiters use boolean search to find the right people. This method is efficient. In short, it narrows the pool to match the job specs.

For example, say a recruiter needs a web developer with HTML5 and CSS skills. Their search string might look like this:

“Web developer” OR “web dev” AND HTML5 AND CSS

This search returns many close-match profiles at once. As a result, it saves hours of scrolling through weak matches.

That brings us to the second use of job boards. Recruiters also post a job advertisement. So candidates can reach out to them first.

RPO specialists post an ad when they want inbound interest. We all know this setup well. The candidate applies, the recruiter gets a notice, and the process begins.

How the aggregator model revolutionizes industries

The aggregator model levels the field for many industries. Every sector is crowded today. So a startup often struggles to get a leg up.

However, this model changes the game. Because of this, small and mid-size firms can compete with big names. It gives every business a chance to be found. In addition, it needs very little marketing to work.

It is not only handy for end users. It also opens doors to new demographics. For example, these platforms often reach users worldwide. Just look at how far Amazon’s reach goes today.

FAQ about the aggregator model

What is the aggregator business model in simple terms?

It is a platform that gathers many providers in one place. Then it connects them with customers. So users get more choice, and providers get more reach.

How does an aggregator make money?

Most aggregators take a cut of each sale. Others charge fees or paid memberships. For example, job boards often charge firms to post roles.

What are common examples of aggregators?

Amazon and Lazada are e-commerce aggregators. Expedia and Airbnb are travel aggregators. Meanwhile, Indeed and Glassdoor are job aggregators.

How is an aggregator different from a marketplace?

The terms overlap a lot. Still, an aggregator focuses on bringing many providers under one brand and standard. A marketplace mainly hosts third-party sellers who keep their own identity.

Why do small businesses like the aggregator model?

It gives them instant reach and low marketing costs. As a result, small firms can compete with large brands. So they gain visibility they could not afford alone.

Key takeaways

• In short, an aggregator model gathers many providers onto one platform.
• It acts as the middleman and often takes a cut of each sale.
• For example, it powers e-commerce, travel, outsourcing, and job platforms.
• As a result, it helps small firms compete with big, well-known brands.
• Finally, RPO teams use job aggregators to source and post for talent.