How to become an eCommerce aggregator: A comprehensive guide.
The e-commerce industry is booming, and there’s no sign of it slowing down anytime soon. With more and more consumers shopping online for goods and services, there’s a huge opportunity for businesses to get in on the action.
One way to do this is by becoming an e-commerce aggregator. An e-commerce aggregator is a platform that connects buyers and sellers, similar to a marketplace. But unlike a marketplace, an aggregator takes a commission on each sale that’s made through its platform.
If you’re thinking of becoming an e-commerce aggregator, then this guide is for you. We’ll take you through everything you need to know about getting started, from setting up your platform to marketing your business. So if you’re ready to learn how to become an e-commerce aggregator, read on!
What is an eCommerce aggregator?
An eCommerce aggregator is a platform that allows merchants to sell their products online through a single marketplace. This type of platform allows merchants to reach a larger audience of potential customers, as well as simplifies the checkout process for customers.
There are a few diverse types of eCommerce aggregators, but the most common is the marketplace aggregator. This type of platform allows merchants to list their products for sale on the marketplace, and customers can browse and purchase items from multiple merchants in one transaction. This type of eCommerce aggregator is most used by larger marketplaces, such as Amazon and eBay.
Other types of eCommerce aggregators include payment processors, shipping aggregators, and fulfillment aggregators. Payment processors allow customers to use a single payment method to pay for items from multiple merchants. Shipping aggregators allow customers to consolidate their orders from
Why become an eCommerce aggregator?
There are many reasons to become an eCommerce aggregator. By aggregating eCommerce businesses, you can provide a one-stop-shop for consumers, which can make it easier and more convenient for them to find and buy products and services. You can also tap into a larger market, which can lead to more sales and more customers.
In addition, becoming an eCommerce aggregator can help you build a more efficient and streamlined business. By consolidating multiple eCommerce businesses into one, you can eliminate duplicative costs and simplify your business operations. This can lead to more profits and more growth for your business.
So, if you’re thinking about becoming an eCommerce aggregator, there are many good reasons to do so. Just be sure to do your research and understand the market before you get started.
The process of becoming an eCommerce aggregator.
An eCommerce aggregator is a platform that collects and displays products from multiple online retailers. An aggregator can be a website, a mobile app, or a third-party service that is integrated with an online retailer’s website.
The eCommerce aggregator business model has become increasingly popular in recent years, as it allows consumers to compare products and prices from multiple retailers in one place. This convenience has made eCommerce aggregators a popular choice for online shoppers.
Becoming an eCommerce aggregator is a process that involves several steps, including building a platform, integrating with online retailers, and marketing your service to consumers. With a little hard work and dedication, you can build a successful eCommerce aggregator business.
Party booking aggregator is the best ecommerce business for the 21st century.
We are a team of twelve colleagues who want to have a private party in any good hotel, can you help us book a cozy and small party hall? I did a Google search and nothing specific was coming out. Seems I must call the hotel one by one to get to the right place.
To look for a best suited solution to this problem, I am going to explain a startup idea that I think can be ranked as one of the best ecommerce businesses if executed correctly.
Problem statement.
This is a real-life problem I encountered recently. Finally, at the end, I had to go to a few hotels to get a private place for twelve people for a cocktail dinner party. It wasn’t a pleasant experience because we spent about 2 hours getting to the right place and the party started late.
Let’s see how we can solve this problem through a business model. Yes, it is going to be an app-based e-commerce business model.
How will this ecommerce business function?
The business will create an app where hotels and restaurants will list places for,
- Banquets
- Parties
- Events
Continue reading to understand this best ecommerce business. I will categorize this initiative as the best ecommerce business.
Detailed business concept.
Currently, there is an aggregator [wed*ingz.in] that lists banquets across the city but all for weddings and big events, in fact, their name itself refers to the segment they cater to.
The business model will only be in party and event spaces and will go from large to small and for any event. The business will work like any aggregator, you can replicate the workflow of any existing hotel booking aggregator, but here is a suggestion.
Under an aggregator agreement, a company will occupy the entire inventory or only that inventory and sell under their own brand. They may list stocks separately on other platforms. The other way is to start as a third party and commission agent. In such cases, the business will have to tie up with several hotels and ask for special rates for different inventory.
Under this model, it is better to have an API integration with the hotel’s reservation system so that the inventory gets an auto-update whenever the status changes.
Hope you got a clear idea of how this business can be started, please remember aggregator business burns too much money towards downloads and client registration, you may find the application cost is lesser than your marketing budget. Also, this business model will need a lot of footwork to get business tie-up with hotels.
The advantage of my proposed model is that you can start with a single city and with less investment load, the other advantages are that you can start from home and with a simple application. Once you get the positive buzz, you may change or upgrade the existing model.
Things to keep in mind before you start an ecommerce aggregator business.
As I have served the hotel industry for quite a long time and have related technical knowledge can confidently advise a few things one should keep in mind while dealing with hotels.
- Please tie up with reputed hotels only. [MUST]
- Work as commission agent only [Hotels give 10% to 20% on overall billing]
- Always bill through you, that may help you keep the instant commission and release early payout to the hotel.
- There are hotels that accommodate small private parties in rooms that are spacious.
- Always cross-check bookings with hotels to avoid double bookings.
- Depute one attendant in case the group size is big.
- Always register your booking and do proper KYC, which will help you prevent unnecessary legal hassles in any undue situation that occurs.
The most important thing you must remember while in this business, that is, partygoers are cool and love to have parties frequently hence the high chance you get repeat customers. So, your service must be superlative; hence, customer experience will matter a lot.
Investment required to start this ecommerce business.
From an investment point of view, this business can be started (Bootstrap) with a minimum of 500K USD but needs continuous funding to extend support for 5 years, the estimated cost can reach up to 500K USD per year depending upon the expansion plan.
The major investment areas are,
- Application development. [The best types will cost you around 20K to 40K USD if sourced from India]
- Customer acquisition. [Initial sales & marketing may cost 80 USD per acquisition. Before you approach investors, you may have to acquire at least one thousand customers.]
- Salary for Non-Sales workforce. [Initially your revenue will be low, and you might have to wait 12 months to get the first investment, so roll on with.10 manpower considering their weekly salary 1200 USD. This will burn approximately 300K USD annually]
- Others like the office, travel, license, etc. may require 100K USD for one year.
To start with a single city operation, you may need two sales professionals, five party attendants, one developer, one accountant, and one digital marketing professional.
To attract investors kindly register your business as legit entity as per the law of your country, and initially invest in application development. Once the prototype is ready try to generate 10 to 20 events and record client (Customer & hotel) experiences.
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Best of luck!
