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7 Things to Notice When Working with an Aggregator

Just because everybody is doing it, doesn't mean you should too...

If you didn’t catch our post last week about the difference between a White Label Solution and an Aggregator Solution than make sure you go check it out now, don’t worry we’ll wait. Ok, everyone all caught up? Good.

There are a lot more than 7 things you need to consider when working with an aggregator but these are some of the most important.

Who Owns The Customer?

Not you. When you join an aggregator, typically, the data is collected and owned by the aggregator platform, not the client. We don’t have to tell you how important it is to be the owner of your own customers. They’re your customers, keep it that way.

Do I Get To Keep My Brand?

Chances are, no. Aggregators do what their name suggests: they aggregate products/services of many different stores and sell them under one platform/brand. They aren’t like a mall, where you go into individual shops and buy certain things. They are more like the classifieds, where you buy items, not really paying attention to who sells/make them.

Do I Get Territorial Exclusivity?

That depends… It is very common for aggregators to use territorial exclusivity as a draw for new customers. And don’t get us wrong, that sounds like a great deal, but as you read down further, things that sound too good to be true, typically are.

Are There Fees?

Of course, but that should come as no surprise. Just like territorial exclusivity, you can expect to see low introductory fees to entice new business and keep a low barrier to entry for the aggregator. Keep in mind that fees are always subject to change and you can bet that they will.

Are There Additional Costs?

Not only are there additional costs that they don’t want to you to know about, but on top of that, there are additional costs that they don’t even collect. Let us explain: let’s say you sign up with a delivery aggregator. Whatever they charge you, it won’t include the increased labor costs, or the brand loss, or the customer data loss. Some of them don’t even deliver the product themselves, which means yet another cost for you. 

Can The Terms Change?

They can and they most certainly will. As you’ve surely seen from the three questions above, nothing is certain when signing up with an aggregator. Be wary of deals from these types of companies that have low introductory offers of costs and fees because they typically scale up as you do. In other words, the more successful you become on their platform, the more money they take from you. And remember, you don’t even the data that is coming from customers in the first place.

What Is Done With My Data?

Oh, you would like to know what is done with your data and where it goes? That’s important to you? (Hint: it should be) Well, you’re out of luck if you work with an aggregator. Not only do you not get your own customer data, the majority of your sales and product data is kept from you as well. 

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