GLOBAL SELLING BLOG
Shipping and logistics aggregator: Meaning, working, benefits
A shipping and logistics aggregator offers cost-effective solutions for streamlined transportation. Learn more about their working and benefits in the blog.
Companies selling via e-commerce need efficient and reliable shipping solutions to streamline deliveries and meet customer expectations. Coordinating multiple shipping partners, tracking orders, and managing complex logistics can be overwhelming. Shipping aggregators provide a practical solution by consolidating various shipping options into a single platform, enabling streamlined and cost-effective logistics management. This blog post will explain shipping and logistics aggregators, how they work, and their importance in the e-commerce sector.
Understanding shipping and logistics aggregators
A shipping or logistics aggregator is a platform that consolidates shipping and logistics solutions from multiple carriers into a single interface. It acts as a bridge between businesses and various shipping companies, allowing exporters and e-commerce sellers to access a wide range of shipping services without needing direct relationships or contracts with individual carriers. These aggregators streamline logistics operations by offering businesses a unified dashboard to compare shipping rates, book services, and track shipments, making them an indispensable tool for e-commerce and international trade.
Importance of shipping and logistics aggregators in e-commerce exports
Shipping and logistics aggregators play a critical role by providing seamless access to a range of delivery options. Logistics aggregators offer significant advantages to small and medium-sized enterprises, which often lack the resources or negotiating leverage to secure favorable shipping agreements on their own. By utilizing a logistics aggregator, businesses can benefit from bulk shipping discounts, track their shipments, and improve delivery efficiency—all managed through a single, unified platform. Aggregators streamline shipping logistics, enabling e-commerce businesses to shipping across borders without engaging directly with multiple carriers.
Did you know?
Over 80% of e-commerce businesses use shipping aggregators to simplify their logistics operations.
How does a logistics aggregator work?
Logistics aggregators combine the services of multiple shipping providers into a unified, easily navigable platform.2 Here is an overview of how it works:
Carrier integration
Aggregators partner with different shipping companies, integrating them into a single platform where businesses can access multiple shipping.
Aggregators partner with different shipping companies, integrating them into a single platform where businesses can access multiple shipping.
Rate comparison
Businesses can compare rates and services from different carriers within the aggregator platform to choose the most cost-effective option.
Businesses can compare rates and services from different carriers within the aggregator platform to choose the most cost-effective option.
Booking and labeling
After selecting a carrier, businesses can book shipments, print labels, and arrange pickups, all through the aggregator.
After selecting a carrier, businesses can book shipments, print labels, and arrange pickups, all through the aggregator.
Tracking and customer support
Aggregators provide tracking information and customer support, enabling businesses to monitor shipments and address issues.
Aggregators provide tracking information and customer support, enabling businesses to monitor shipments and address issues.
Advantages of shipping aggregators
Shipping aggregators provide numerous benefits, especially for e-commerce businesses:
Aggregators negotiate bulk rates with carriers, which reduces shipping costs. Businesses benefit from the reduced charges.
Businesses can compare and choose among various shipping options based on cost, speed, and service level. Businesses can customize carriers based on their shipping needs.
By consolidating logistics tasks onto one platform, aggregators save businesses the time involved in coordinating between multiple carriers.
Aggregators offer a single dashboard to manage and track multiple orders, streamlining logistics management.
With tracking and analytics features, aggregators help businesses monitor shipping performance and refine their logistics strategies.
Most aggregators partner with international carriers, enabling businesses to expand their reach to a global customer base.
Aggregators typically provide tracking and support services, helping businesses keep customers informed and satisfied with timely deliveries.3
Disadvantages of shipping aggregators
While shipping aggregators streamline the shipping process for e-commerce businesses, they may present certain disadvantages. Some of these are as follows:
1. Limited carrier control
As the intermediary, aggregators reduce the direct control that businesses have over individual carriers.
2. Aggregator dependence
If the management system of the aggregator faces any disruptions, shipping operations may get disrupted temporarily.
3. Service fees
Aggregators often charge a fee for using their services, which can accumulate over time, especially for small businesses.4
Differences between shipping companies and logistics aggregators
Aspect
Shipping companies
Logistics aggregators
Service scope
Offer their own shipping services.
Combine services from multiple carriers.
Cost
Direct costs based on the company’s rates.
Often offer discounted rates due to bulk deals.
Options
Limited to one carrier’s network.
Provide access to multiple carriers.
Management
Separate systems for each shipping company.
Unified dashboard for managing multiple carriers.
Customer control
Direct business-carrier relationship.
Aggregator acts as intermediary between both.
Tracking
Carrier-specific tracking options.
Aggregated tracking across carriers.
Pin code reach
Restricted to limited pincodes.
Wider pincode reach through multiple carriers.5
Conclusion
Shipping and logistics aggregators are highly valuable for businesses looking to export internationally. Aggregators simplify logistics operations by providing the flexibility, cost savings, and scalability that are key to success in e-commerce exports. For assistance with international shipping, Indian exporters can leverage the tools and services offered by e-commerce export programs like Amazon Global Selling.
Amazon Global Selling: Easy e-commerce exports and hassle-free shipping
If you are a business owner and you want to sell your products to the world, Amazon Global Selling enables you to list and sell ‘Made in India’ products on 18 Amazon global marketplaces. As an e-commerce export program, Amazon Global Selling provides support and guidance at every step of your export journey, connecting you to Amazon’s Service Provider Network for tailored compliance, payments, and logistics support.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for fulfilment by Amazon (FBA) and outsource order fulfilment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Registered sellers can choose to ship their products by themselves through Merchant Fulfilled Network (MFN) or they can opt for fulfilment by Amazon (FBA) and outsource order fulfilment to Amazon including packing, storage, delivery, and returns. Amazon Global Selling simplifies the process of international shipping to the world, helping businesses navigate customs and reach a vast audience.
Frequently Asked Questions
1. Why do e-commerce companies choose to use shipping or logistics aggregators?
E-commerce businesses often use shipping and logistics aggregators because they simplify logistics by consolidating various carriers into a single platform. Aggregators offer cost savings, ease of management, and access to a range of shipping options, making it easier for companies to meet customer expectations and scale their operations.
2. What is a courier or parcel aggregator?
A courier or parcel aggregator partners with multiple delivery providers to offer a single interface for booking and tracking shipments. This allows businesses to choose from various carriers based on price and speed, all within one platform.
Published on January 17, 2024.
Sources:
1. https://nimbuspost.com/blog/how-important-is-a-shipping-aggregators-for-an-ecommerce-business/#
2. https://www.goswift.in/blog/what-is-a-shipping-or-courier-aggregator
3. https://www.clickpost.ai/blog/benefits-of-ecommerce-shipping-aggregator
4. https://www.clickpost.ai/blog/disadvantage-of-ecommerce-shipping-aggregator
5. https://www.shipyaari.com/blogs/what-is-the-difference-between-a-shipping-company-and-a-logistics-aggregator/
Sources:
1. https://nimbuspost.com/blog/how-important-is-a-shipping-aggregators-for-an-ecommerce-business/#
2. https://www.goswift.in/blog/what-is-a-shipping-or-courier-aggregator
3. https://www.clickpost.ai/blog/benefits-of-ecommerce-shipping-aggregator
4. https://www.clickpost.ai/blog/disadvantage-of-ecommerce-shipping-aggregator
5. https://www.shipyaari.com/blogs/what-is-the-difference-between-a-shipping-company-and-a-logistics-aggregator/
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*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
*Map not to scale. The map has been used for design and representational purpose only, it does not depict the geographical boundaries of the country. These do not conform to the external boundaries of India recognized by the Survey of India.
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