Aggregators Vs Re-sellers

One common question keeps triggering our mind while working in Enterprise Messaging business “What is the difference between an Aggregator and a Re-seller.”

Due to high market competition, there are lots of ted-talks in the market confusing us alot. However, we all are still looking for one right answer to our question. Recently, an attempt was made by Obligr team to get a clear conceptual idea about it. In this attempt, Team had arranged a face-to face sessions with some of the industry experts who had contributed more than 10 years of their knowledge and experience in this industry. After receiving so called ‘satisfactory answers’ and explanations on dissimilarities between both entities, we have summed-up their notes in simple words. According to them, there are 4 main differences between an Aggreegator (Refered here as ‘A’) and a Re-seller (Referred here as ‘R’):
Difference 1.

A: An Aggregator is an organization, which purchases high SMS volume directly from the Telecom Operators. i.e. Vodafone, Airtel, Idea, Aircel, MTNL, BSNL, etc. This Aggregator sells sms to any Re-seller.
R: On the other hand, Re-seller is a company, which buys SMS either from an Aggregator or any other Re-seller, and finally sells it to their own end users.
Difference 2.

A: In reality, there are approx 20-30 Aggregators in the market that buys sms traffic in Crores from the Operators.
R: Re-sellers are plenty in numbers, and usually deals with below 1 Crore sms volume.
Difference 3.

A: An Aggregator is not able to change much in their per sms rates, while dealing with Re-sellers.
R: On the contrary, a Re-seller may consider good amount of profit while selling sms to their end users.
Difference 4.

A: While dealing with Re-sellers, an Aggregator won’t look for applying cutting, as they focus on 100% sms deliveries.
R: Although, Re-sellers tends to put various logics like cutting, overselling, etc in sms to achieve maximum profit.
Hope this article helped you in understanding the real difference between an Aggregator and a Re-seller. Obligr Team will keep you posted on the latest findings and various helpful articles to keep us well abreast with the market trends.