The model rests on volume. An aggregator ships for many sellers at once, so its combined parcels can earn carrier rates that a small seller would struggle to negotiate alone. It typically earns a margin between what it pays the carriers and what it charges the seller, and some platforms charge a subscription instead or as well. It is also known as a delivery aggregator or a shipping reseller.
How Does a Shipping Aggregator Work?
- Connect orders. The seller links a store, marketplace or order management system, or uploads orders in a file.
- Compare carriers. For each parcel, the platform shows the price and delivery time of every service it offers: rate shopping without a separate login for each carrier.
- Buy the label. The seller picks a service and prints the label. The cost comes off a prepaid balance or goes on the aggregator's invoice.
- Hand over the parcel. The carrier collects it or the seller drops it off, as with any parcel shipping.
- Track and resolve. Tracking from every carrier shows in one dashboard. Billing adjustments generally come through the aggregator. Claims for lost or damaged parcels depend on the carrier: FedEx does not accept claims from customers who shipped through a reseller it calls a package consolidator, while USPS lets the mailer or the addressee file directly.
Where Do Aggregator Rates Come From?
Fig. 1 · Comparison
| Item | Whose carrier rates | Carriers |
|---|---|---|
| Direct carrier account | The seller's own, from its contract with that carrier | One per account |
| Shipping aggregator | Usually the aggregator's, resold to the seller | Several, through one account |
| Multi-carrier shipping software | The seller's own accounts, connected in one screen | Several, each on the seller's account |
| 3PL | Carrier rates billed by the 3PL, sometimes with a markup or a discount | Several, chosen with the 3PL |
An aggregator's rates usually come from its own accounts with each carrier. Some platforms also let a seller add its own carrier accounts, so one platform can work both ways.
USPS is a special case. A seller using a USPS-approved PC Postage platform can pay commercial Priority Mail prices instead of retail, on its own agreement with USPS, so the discount comes from the channel and not from a reseller's account.
Shipping Aggregator vs. 3PL
An aggregator handles only the shipping step: the seller still stores the stock and puts the label on the parcel. A third-party logistics (3PL) provider takes on the warehouse work as well, from receiving and storage to order fulfillment and returns. For the orders a 3PL ships, the shipping is usually on the 3PL's bill rather than bought through the seller's own aggregator account.
Pros and Cons of a Shipping Aggregator
- Pro, one account: one login, one balance and one invoice instead of one per carrier.
- Pro, rates without a contract: rates that can beat list prices without the volume or the negotiation a direct carrier contract involves.
- Pro, choice: several national and, where the platform offers them, regional carriers side by side for each parcel.
- Con, a middle layer: the aggregator sits between the seller and the carrier, so a claim or a billing dispute can take an extra step.
- Con, rates the seller does not own: the aggregator can change them, and the volume builds the aggregator's carrier relationship rather than the seller's.
- Con, charges after the label: carrier accessorial charges, such as an address correction, still apply, and a carrier audit of weight or dimensions can change the price, so either can be billed after the label is bought.