Tag: amazon aggregators

Selling To Amazon Aggregators: One Year On

Posted on by Amazon Aggregators

The gloriously long hot summer of 2021 provided a much-needed antidote to the world’s post-Covid blues.

For most people, it was a time to kick back, relax and enjoy the delights of the great outdoors again.

Sadly, this wasn’t exactly the case for me.

Or Richard.

In fact, that same summer was right up there as one of the most intense periods in our lives.

Most of which was spent indoors, with our faces super-glued to the computer screen.

Why?

Because having been contacted by various Amazon Aggregators at the beginning of July 2021, we were both knee-deep in due diligence throughout the proceeding period.

And we were not alone, either.

You see:

Countless other Amazon FBA sellers were also navigating the sale of their own business during the summer of 2021.

In what has now been described as the peek of acquisition activity, following the prior 24-month boom in all things e-commerce.

One year after selling

And so, here we are.

A full 12 months have passed since Richard closed the deal on his Amazon FBA business.

I still have a few more weeks to wait before celebrating the same anniversary.

This inevitably got us thinking about our respective FBA brands this week.

Specifically:

What we have learnt since handing over the day-to-day operations, the things we would have done differently and, of course, what a new Amazon business might look like in 2022.

It was an emotional, sometimes painful, and yet highly productive session to say the least.

Want to know the best part?

After a few hours of reminiscing between ourselves, we decided to open up the conversation with our large network of other post-exit FBA sellers.

To really ‘dig into the weeds’ of what it’s like to run an Amazon business and how life had changed, following their recent sale.

This is where things got really interesting.

The 2021 post-exiteers

With informal sessions set up with more than 30 participants at the beginning of July this year, we set ourselves the challenge of competing all ‘interviews’ within a week.

Five short and sweet questions were posed.

The results of which are summarised below.

I’ll probably write up a more detailed post on the findings of our somewhat impulsive survey.

But for now, it might be nice to picture how YOU will feel without the burden of running your current business and a tidy (large) deposit in your bank account.

Start here, today.

1. On a scale of 1-10, how would you rate your overall health and wellbeing*:

1.1 Whilst running your Amazon business: Scored 4 (on average)
1.2 Six months after selling your Amazon business: Scored 7.5 (on average)

2. On a scale of 1-10, how often have you checked in on the progress of your sold brand?*

2.1 Within the first six months of selling: Scored 8 (on average)
2.2 Between six and twelve months of selling: Scored 2.5 (on average)

3. On a scale of 1-10, what do you miss about running an Amazon business?*:

3.1 Regular (passive) income: Scored 9.0 (on average)
3.2 The FBA community: Scored 3.5 (on average)
3.3 Launching a product: Scored 7.0 (on average)
3.4 Creating the brand: Scored 8.5 (on average)
3.5 Happy customers: Scored 2.0 (on average)

4. On a scale of 1-10, how likely are you to start a new Amazon or Shopify business?*:

Scored 8.5 (on average)

5. On a scale of 1-10, what would your new Amazon business look like?*:

5.1 Amazon USA marketplace: Scored 9.5 (on average)
5.2 Other Amazon marketplaces: Scored 4.5 (on average)
5.3 Five or fewer ASINs: Scored 7.0 (on average)
5.4 More than Five ASINs: Scored 5.5 (on average)
5.5 Small, lightweight products: Scored 8.5 (on average)
5.6 Oversized products: Scored 1.5 (on average)
5.7 Local suppliers only: Scored 7.5 (on average)
5.8 Overseas suppliers only: Scored 5.5 (on average)
5.9 Higher than market price point: Scored 8.5 (on average)
5.10 Lower than market price point: Scored 6.0 (on average)

* Scale rating based on 1 (low), 10 (high).

Amazon Aggregators vs Ecommerce Aggregators (And The Value Of DTC)

Posted on by Amazon Aggregators

It’s fair to say the Direct to Consumer (DTC) model of e-commerce is a difficult nut to crack.

Trust me, I speak from experience.

In fact, since publishing my very first WordPress site in 2006 all the way up to 2021, I tried monetizing products on WooCommerce, Magento, Shopify, and everything in between.

What did I learn in the process?

Launching a private label brand on Amazon FBA was an absolute breeze compared to DTC.

And 99% of sellers would agree.

Until recently*, that is.

* See – Amazon restock limits, PPC costs, seller performance, ASIN hijacking, Chinese competitors, and so on.

Amazon vs Shopify Revenue

With all that being said:

And as we have stated many times.

Amazon aggregators look for different things in a private label business.

Whether it’s the number of SKUs, product category, marketplace sales, geographical location, revenue, margin, or SDE.

Richard and I are often amazed at the types of deals aggregators pursue, and the ones they pass on.

Needless to say:

No matter what type of brand you have created, buyers will come to the table if the business profile and – crucially – the financials hit the buyers’ pre-determined sweet spot.

Now, on that very subject.

An interesting trend appears to be emerging in recent months.

And that is a preference amongst many Amazon aggregators for brands with strong DTC financials.

To put that another way:

If you have managed to crack the code of making your Shopify (or equivalent) store profitable, your business is in great shape to be acquired this year.

Particularly if you have weaned yourself off the 100% Amazon teat and can boast a more diversified split of revenue streams.

Amazon Aggregators vs DTC Ecommerce Aggregators

This brings us neatly around to your selling options.

Specifically:

    1. Brokers
    2. Amazon aggregators
    3. DTC Ecommerce aggregators

At the risk of (once again) offending our friends in the broker world, I’d like to focus more on the latter two.

In fact:

Since the subject of Amazon aggregators has already been comprehensively covered on this website, let’s dive into DTC Ecommerce aggregators, and why you might want to sell your business to one.

Ecommerce aggregators

Okay, I know what you’re thinking.

What is the difference between an Amazon aggregator and an Ecommerce aggregator?

Well, consider this.

The e-commerce ecosystem is enormous.

And although it might come as a surprise to some FBA-only sellers, an entire world of online riches exists outside of Amazon.

Of course:

The strategies for operating a true DTC brand are more complex in nature compared to FBA.

But the rewards, many would argue, can be infinitely more lucrative.

Why?

Because although Amazon does a lot of the heavy lifting (customer service, fulfilment etc) in an FBA-only business, they ultimately own the relationship with the customer.

And this is where the real value lies.

In short:

Amazon aggregators acquire and add value to brands predominately selling via FBA.

These brands ‘piggyback’ off Amazon’s core USPs of price selection and convenience. They are, however, heavily reliant on marketplace sales.

Ecommerce aggregators, by contrast, seek out brands that exist independently of third-party marketplaces like Amazon, eBay and Etsy.

They understand the complexities of the DTC business model but consider it a longer-term play, with fewer downsides.

Bottom line?

Whilst the market is flooded with Amazon-only aggregators, there is still plenty of buyers for DTC businesses trading via Shopify.

If you brand pulls in orders across several platforms, you’re potentially in line for a higher exit multiple.

With both e-commerce aggregators and Amazon aggregators competing to acquire the business you have created.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Amazon Aggregators ARE Still Buying (Breaking News)

Posted on by Amazon Aggregators

I always enjoy checking in on my Google news alerts.

For more than 15 years, these golden nuggets have provided me with the latest industry insights into everything from meditation and gut health to index trackers and crypto.

It’s fascinating to observe how online news proliferates within certain niches.

If one authority website posts up a juicy editorial, it’s often rehashed multiple times within the space of a few weeks.

“Breaking news”, they all claim.

Hardly.

Amazon aggregators in the news

This exact phenomenon appears to be occurring in the Amazon aggregators space right now.

You may have even noticed.

In fact, I’ve lost count of the number of articles that I’ve read recently that state, categorically, that the FBA aggregator ‘bubble‘ has burst.

How so?

Well, for starters, it’s been reported that 95% of Amazon aggregators are struggling to ‘on-board’ the FBA businesses they have purchased.

Most are haemorrhaging money on staff, logistics, and advertising without any hope of turning a profit, apparently.

Worst still:

There is not one single Amazon aggregator actively buying private-label brands at the current time.

So don’t even bother wasting your time trying to sell, right?

Wrong.

A slightly different perspective

As I’ve stated before:

I’d like to think that Richard and I can offer a more informed viewpoint on the subject of Amazon aggregators.

Of course, we know what it’s like to sell our business to an aggregator.

But crucially:

As part of our service here, we sit at the intersection between Amazon sellers and Amazon aggregators.

To put that another way.

We have an insider’s perspective on the state of the market, and why the latest reports should be taken with a very large grain of salt.

If the business fits, you’re in demand

Here’s the deal:

Yes, Thrasio – the original gangster – has reportedly begun laying off staff.

No surprise there, really.

They have acquired over 200 brands over the past couple of years so a streamlining of operations had to happen sooner or later.

But this whole “the sky is falling in” narrative is more than a tad dramatic.

Still not convinced?

Let me dazzle you with some facts, direct from ecommerce aggregators HQ.

Since the beginning of April 2022, and in addition to our existing database of Amazon aggregators, Richard and I have been contacted by a further 12 companies.

All are well-funded and actively pursuing FBA businesses to acquire.

Between them, they are investing thousands in marketing, trade shows, workshops, mailshots, outreach, podcasts, and everything else you can think of.

Why?

Because, having recently secured finance, they have an obligation to spend that money.

And spend that money they most definitely are doing, like many other Amazon aggregators, right now.

Of course, your Amazon business needs to fit the profile in terms of product category, growth, and – above all – profitability.

But that has always been the case.

In fact:

If the numbers stack up, your brand will probably be more in demand now than ever before.

Bottom line?

From where we’re standing, nothing has changed from an Amazon seller’s perspective.

So if you fancy taking the next step, you know where we are.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Do You Want To Sell Your Amazon Business? Don’t Make This Mistake.

Posted on by Amazon Aggregators

Richard and I sat down for our weekly ‘cup of tea’ catch up last week.

For more than two hours, we talked about all things eCommerce, FBA, Shopify, DTC, and – of course – Amazon aggregators.

The conversation, as always, turned to our many and varied video calls with Amazon sellers over the previous 7 days.

From this, we concluded two things.

Firstly:

Connecting to so many like-minded individuals continues to be our single most favourite aspect of this business.

Secondly:

A very clear trend is now developing between the type of businesses that attracts Amazon aggregators, and the ones that the vast majority of buyers pass on.

This leads me to the purpose of today’s blog post.

Don’t run out of stock

Let’s face it.

Moving inventory around the globe has been particularly challenging this year.

And if you’re still playing catch up from those heinous Amazon restock limits from 2021, you are not alone.

But here’s the deal.

If you want to sell your Amazon business in 2022 and, more importantly, achieve the maximum valuation, you absolutely must get a handle on your stock.

Let me explain:

Since the beginning of January, nearly 400 Amazon FBA and Shopify sellers have contacted us through this website.

Of the 400 businesses, 10% were under the revenue and / or margin thresholds required by Amazon aggregators.

And the rest?

70% were rejected in the first round.

Of this 70%, at least half were extremely attractive businesses but for one thing.

Most, if not all, of the brand’s top-selling ASINs were consistently out of stock.

The financials, as a direct result, just didn’t hit the mark.

Get some perspective

Now I know what you’re thinking.

‘Not running out of stock’ is easier said than done.

And of course:

When you’re deep in the Amazon trenches, dealing with a myriad of daily headaches, it is hard to gain perspective.

But there is an answer.

One that does not involve more inventory spreadsheets which, in our experience, have been the downfall of many of the sellers we have spoken to.

The solution?

Inventory software

It sounds simple. And it is.

You see:

Over the course of our 8 long years running an Amazon business, Richard and I subscribed to countless tools, software, and professional services.

Yet when it came to managing inventory, we both went down the rabbit hole of bespoke spreadsheets.

Wasting thousands of revenue in the process.

And so:

With the benefit of our shared experience, I make just one recommendation for you.

Before closing down your computer today, consider taking a few hours out to research inventory software.

Why?

Because moving over to a more automated stock control could make or break your Amazon business this year.

In fact:

Amazon aggregators love it when you’re seen to be proactive with process improvements.

Particularly when they directly benefit the bottom line.

Our recommendation

Take action today, and stop the rot of zero inventory.

Oh, and if you’re feeling lazy and don’t have the time to research, our favourite inventory management tool is RestockPro (no financial affiliation!).

Like its sister software – and original gangster – FeedbackFive, RestockPro kicks butt when it comes to helping you run your Amazon business.

Both products featured prominently in the success of our own FBA businesses and come thoroughly recommended.

Right, that’s it for another week.

Here’s to a productive Friday.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Richard Is Off To Seller Sessions Live 2022. Are You?

Posted on by Ecommerce Aggregators

The Amazon FBA live events season is upon us again.

This week, Richard is off to Seller Sessions Live 2022.

For a weekend of keynote speeches, ‘ninja’ marketing strategies and – of course – the odd brewski (or two).

The typical Amazon seller

Along with White Label, Seller Sessions Live is a particular favourite of Richard and mine (Martin).

Why?

Because we, like so many other Amazon FBA sellers, lead a fairly solitary existence.

Most mornings consist of waking up early, sorting out the dogs, and waving the kids goodbye as they head off for school at 7.45 am.

And then:

The silence kicks in.

While you boot up the computer and prepare for another day at home, alone.

Seller Sessions Live 2022

It is for this reason that events like Seller Sessions Live 2022 are so incredibly valuable.

Firstly, you get the opportunity to step outside your usual routine and ‘mix things up’ for a few days.

Better still:

The networking at Seller Sessions Live is off the planet.

With some of the biggest private label sellers, software providers, and Amazon aggregators set to attend the two-day event.

Seriously, if you’ve never been, I strongly encourage you to get off your lazy butt right now, head on over to the Seller Sessions website and book a ticket.

The value of networking

Richard and I first met at an event like this, way back in 2013.

We later formed our own Mastermind with three other like-minded FBA sellers and the rest, they say, is history.

Of course, I worked like a loony tune to make my Amazon FBA brand a success.

But it certainly would not have been the business it became without the awesome power of our Mastermind, and the leverage of its shared experience.

Bottom line?

You and I both know what it’s like to be an Amazon seller at the present time.

So do yourself and favour and lighten the load this weekend.

I guarantee it will be worth it.

Oh, and if you do happen to bump into Richard, give him a big hug from me.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Meet The Aggregators (At White Label World Expo, USA)

Posted on by Ecommerce Aggregators

It’s been another hectic month in the life of an Amazon FBA seller.

PPC costs, like everything else this year, went through the roof in April 2022. Combine this with rising wholesale unit prices, storage, shipping and – as we covered last week – an imminent hike in FBA fees.

Not a week has passed over the past four months without some damage to your bottom line.

And yet:

As April draws to a close, there is at least something positive to look forward to next month.

In fact, I’d go as far to say that this could well be the highlight of your year.

White Label World Expo, USA

What’s it all about?

Well, picture the largest gathering of online sellers, white-label goods suppliers and Amazon aggregators in one place.

With 200+ free workshops from ecommerce experts, Amazon legends and business growth gurus.

Better still:

This year’s event is being held over a two-day period, between 25-26 May, at The Las Vegas Convention Center.

Just think about that for a minute.

This could be your one opportunity in 2022 to achieve any one (or all) of the following:

    1. Find a new supplier
    2. Hook up with a better 3PL
    3. Drive down the cost of shipping
    4. Sort your bookkeeping and taxes
    5. Protect your intellectual property
    6. Sell your Amazon business

The latter, of course, is of particular significance if you plan on exiting your Amazon business this year.

With more than 30 of the top Amazon aggregators set to exhibit, speak and run seminars over the course of two action packed days.

The power of the community

Bottom line?

Everyone who’s anyone in the FBA seller community goes to White Label World Expo.

The networking alone is well worth the trip to Nevada.

And if there’s one thing I could take away from my 8 years in the Amazon trenches, it would be the power of the community.

Remember:

When it comes to running an Amazon business, most ‘golden nugget’ tips, tricks and recommendations are not shared on the public forums.

They’re offered up during face to face connections and (often paid for) masterminds.

So what are you waiting for?

Block out 25-26 May in next month’s calendar, jump on the White Label World Expo website and grab a free ticket, today.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

A Discharged Israeli Soldier’s $20M Amazon FBA Success Story

Posted on by Ecommerce Aggregators

When Y, an Israeli soldier, had to retire from the army due to injury, there was only one thing he wanted to do: establish himself on Amazon. This is Y’s success story, which goes beyond the storefront that consumers see.

Not only did an Amazon aggregator play a part, but the process also included specialist bankers and a remote network of workers.

That said, you’ll be surprised at how few hands it took to get Y to the point of making his FBA business the perfect vehicle for investment. But it will prove inspirational for any other seller looking to sell their Amazon FBA business for profit.

Humble beginnings

Admittedly, Y wasn’t new to online advertising. Even before he was a teenager, he’d earned his first shekel using Google Ads. You’d struggle to compare that ‘influx’ of capital with the FBA business he eventually sold to Thrasio, though.

At the age of just 26, with just two local employees and a remote logistics contractor in the Philippines, Y sold his business for $20M.

Finding the value in failure

Y’s journey wasn’t always a bed of roses. In fact, his first Amazon adventure, when he was aged 21, was a categoric failure. And, when you see why, I bet you can all relate to some degree with the process and outcome.

To his mind, he’d done everything right. He’d sourced the product from China, listed it for sale on Amazon, he even sold all the units. Despite this, his naivety ended up making him zero profit from that first venture.

But it did teach him a valuable lesson.

The true entrepreneurial spirit

Using what he’d learned, Y decided to look under the hood of what made a successful Amazon FBA business tick. This began with research, not only into the product and its market but into the potential competition, too.

Thereafter, he made informed decisions about what to buy. He procured three further products (household category), which sold as well as his first failed venture. Only this time, he’d done his homework.

Every ounce of profit he made he reinvested, adding to his inventory, then rinsing and repeating. He recognises how much hard work was involved, but knows it was worth it.

How COVID actually helped

Prior to the pandemic, Y was on the verge of selling his business to a fellow Israeli. Then COVID hit and the buyer reconsidered, before finally pulling out of the deal. More fool him, eh?

As was the case for many online business owners, the boom in online spending during the pandemic skyrocketed Y’s sales. At the same time, a new type of business was emerging: the eCommerce aggregator.

Y already had support from Fortunet, a lender that specialises in end-to-end fulfilment for online merchants. This, along with Y’s attitude, due diligence and high presence in Amazon listings made the perfect storm for the new type of aggregator or roll-up investor.

Happy ever after?

Thrasio was that investor. And, concerned about long-term security in the face of the pandemic, Y accepted their offer to buy his business for $20M. When you think of Y’s humble beginnings, you realise just what can be achieved with the right product, environment and work ethic.

Now that Y’s settled, he’s not been complacent. The injection of capital from Thrasio has enabled Y to operate at a much higher level with new brands. Managing four Amazon businesses and employing 22 people across those services, Y’s on target to hit $100M per annum turnover in 2025.

There’s a moral here, I guess. It doesn’t matter how small your acorn is, if you nurture it correctly, there’s no telling how mighty your oak may become.

How closely can you relate your own journey to Y’s story? If you can and are interested in finding out what an Amazon aggregator might think of your business, why not start that process today?.

Thrasio is purported to have bought businesses now netting them $1.5M profit per day! If you’re a good match for them, there’s no reason ‘Y’ your business can’t add to that pot.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Amazon Aggregators Guide (For FBA Sellers)

Posted on by Amazon Aggregators

It was mid-2021.

Richard and I (Martin) were considering selling our Amazon FBA businesses, having been approached by multiple brokers and Amazon Aggregators over the past few months.

Our brands, with nearly 100% of their sales coming from Amazon, had been absolutely flying, revenue-wise, since 2015.

Covid, Brexit and logistics

Many FBA sellers were still struggling with the fall-out from Covid at that time, as well as the challenge of global logistics.

And whilst we were fortunate enough to dodge the majority of those sh1t bullets, the fun and games of Brexit and moving stock into Europe remained.

In other words:

By September 2021, Richard and I felt it was the right time to exit our respective businesses. And move on to pastures new.

Selling your Amazon business

If this resonates with your current situation and headspace, you’re not alone.

In fact, since starting this service, we have now spoken to over 300 Amazon FBA sellers, each with their own unique back story, brand, and reasons for exiting.

Okay, I know what you’re thinking:

What does this have to do with a definitive guide to Amazon Aggregators?

Well, as part of our 2021 research into the minefield of brokers, buyers and aggregators, one thing was clear.

There’s an astounding lack of decent, added-value information for FBA sellers in this space.

Worst still:

The vast majority of ‘expert guides’ are reworked Google posts written by editors and copywriters with absolutely no direct experience of selling on Amazon, or – for that matter – what it’s like working with Amazon Aggregators.

Amazon Aggregators – your definitive guide

And so, Richard and I have taken it upon ourselves to create something special.

For all those FBA sellers out there who want the salient facts and figures. Without wasting hours of time searching for them:

Amazon Aggregators – The Definitive Guide For FBA Sellers In 2022

Have a read today (it will take you less than 5 minutes) and let us know what you think.

As always, we are here for any questions you have about Amazon Aggregators and the process of selling your business to one.

Further reading:

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

Amazon Aggregators, IP and The Importance of Due Diligence

Posted on by Amazon Aggregators

Due diligence is widely regarded as one of the most essential functions of Amazon aggregators.

And with the relentless speed at which smaller Amazon FBA businesses are continuing to be acquired in 2022, the importance of robust ‘DD’ cannot be underestimated.

Of the many components that constitute due diligence, Intellectual Property (or I.P) is something that is often overlooked by the seller. Amazon FBA aggregators, however, see I.P as a marker of a seller’s passion for their business.

If a seller has put in the effort of registering Trademarks, for example, it follows that they’ve probably shown ‘due diligence’ across their entire business.

Many FBA sellers will have looked at what I.P involves and asked themselves ‘Is it worth it?’. Here’s why we think you should definitely consider going that extra mile.

Amazon Aggregators expanding FBA Brands into the global marketplace

If you’re a national, rather than an international FBA seller, you may only have registered your brand in the UK (or your country of residence). Aggregators who want to buy your business are probably looking to expand it alongside other like products (the portfolio). This is the very nature of aggregators’ existence.

Their brands or like products may not all (if any) be based in the same country as your FBA business. That would mean the aggregator, in order to protect your brand overseas, needs to register the Trademark wherever they intend to sell.

As well as having to register it themselves, it also could provide an unforeseen headache. This is especially true if you import your product from far-flung destinations.

Bad faith Trademarks

If you’ve built up an FBA business that piques an aggregator’s interest, e.g. $1m plus in EBITDA (earnings before interest, taxes, depreciation, and amortization), you’ve probably had to rely on imports from countries. This could be down to expertise, material or because the labour rate is lower than in Europe and North America.

One of the first things aggregators do when they have a portfolio of like products and brands is to streamline that portfolio’s supply chain. There’s no guarantee they’ll use the same supplier as you have for your white label business.

This could trigger what’s known as ‘bad faith’ Trademarks and patents. Chinese suppliers are renowned for it.

It may be that you pull your orders from them and/or switch factories. It could just be that one of your supplier’s competitors is looking to hit a low blow by registering the Trademark for your product. Even if they’ve played no part in its conception or manufacture.

That competitor or previous supplier can then tie the supply chain up in knots. If they own your Trademark in their country, they can even tie up your container at the docks. At that point, you have very little recourse open to you.

Go the extra mile

So, if your FBA business relies on branding and Trademarks and you’re looking to sell to an aggregator, go that extra mile. Look at countries that sell products similar to yours, including potential manufacturing plants, and own your intellectual property.

For UK FBA business owners, the Intellectual Property Office offers key advice about Protecting your UK intellectual property abroad.

It’s the safest way to protect your brand. It’s also a key consideration in the due diligence process of selling your FBA business to an aggregator. And, as aggregators become more choosy (which they are), it could be the difference between you receiving the offer your business deserves and not.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read. And represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Is Thrasio Eyeing UK-Based £1M+ Amazon FBA Sellers?

Posted on by Amazon Aggregators

What type of products produce £1M/year small businesses on Amazon, do you think? Funny you should ask, because Thrasio, one of the top Amazon aggregators, seems to be thinking along the same lines.

Looking deeper into the UK Amazon Marketplace, their research turned up some surprising numbers. From the mundane to the unexpected, a broad spectrum of categories produces £1M+ sellers.

The results could also give us insight into why that old adage “Mad dogs and Englishmen…” still rings true today.

The top, bottom and just plain odd

Distilling Thrasio’s results, this table shows the most and least likely product categories to pull in the £83k+ a month to produce £1M annual sales. And then there are others that some might say exhibit worrying insights into British consumers’ motivation:

Probability Product Category # of UK Amazon Sellers
Highest Grocery 667
Highest Beauty 533
Highest Home & Kitchen 370
Highest Pet Supplies 279
Highest Electronics & Photography 256
Yes, really Dog Biscuits & Snacks (outside Pet Supplies) 31
Yes, really Chocolate >> Chocolate Boxes & Gifts 20
Yes, really Day Creams >> Face Serums 18
Least Lighting 3
Least Shoes & Bags 3
Least Watches 2
Least Jewellery 1
Least PC & Video Games 1

“Fulfilled By Amazon”‘s role for top UK Amazon sellers

Thrasio’s research suggests that there are currently 2,795 individual small businesses pulling in £1M/year. Those numbers in the table above hint at where the bulk of the potential lies.

Consider the business aspect, too. Those categories boasting the most sellers will also be the most competitive.

And according to the research, most are traditional brick and mortar businesses. But almost a third (32%) are Amazon FBA sellers. This means Amazon handle storage and logistics on their behalf.

The research’s findings are no surprise to Jim Mann, Thrasio’s acquisitions’ director.

A Nation of Online Shopkeepers (as well as pet lovers)

Business owners no longer need years of experience and oodles of cash to launch an Amazon small business or private label enterprise. With astute research, Internet marketing nous and one or two decent supply chains, anyone can embark on an entrepreneurial journey.

Thrasio knows this, as they do it all (and more) at scale. But these traits also explain the key elements to Thrasio’s appeal.

Have we lost that lovin’ feeling?

In comparatively no time, an individual can grow their Amazon business online. If they build using the right metrics, they can easily blip onto amazon aggregator companies’ radars.

In days gone by, business owners weren’t so readily tempted to sell. Their years of blood, sweat and tears meant something. The brick and mortar that housed the business was part of that success, too.

You can almost hear Arkwright, now, “G-Ger-G-Granville, I’ll s-sell this ser-shop over my d-der-d-der-dead b-b-b-body.” But that’s not always the case with today’s entrepreneurs.

Launching with an Exit in mind

What’s also true is that young(ish) upwardly mobile folk are thinking differently. Their sole intention is to sell their Amazon FBA business from the start. Global ecommerce aggregators’ increasingly tempting valuations have made this business model a viable option.

Mann concludes his explanation of the research along those lines. He knows that selling an Amazon FBA business to Thrasio is incentive enough to launch or grow a storefront.

He expects to see ‘retail titan[s]’ all over the UK, integral to local economies. Moreover, “hundreds or thousands of new millionaires” being created in the process.

The circle of shelf life

We know many people are already looking to sell their Amazon businesses, and for many reasons. Competition, reduced profits, and new eco-barriers are just some.

But as Gen Z comes to the fore, it’s important to remember the entrepreneurial circle is likely to repeat itself.

Will they build their Amazon stores for the same reasons as the preceding generations? Definitely not.

Many more will leverage FBA, creating businesses from their bedrooms, never getting their hands dirty. And, when they achieve the metrics they need, they’ll begin the exit process. Perhaps even selling to Thrasio.

Do ecommerce aggregators care? Not really. They’re looking to buy small brands, roll them up and sell a more complete package to investors. And who wouldn’t want a piece of that?

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Double Bubble: The Growth of Amazon FBA Business Valuations

Posted on by Amazon Aggregators

So, this is Christmas. And what have you done?

Well, if you’re like many other Amazon FBA business owners, you’ve run yourself ragged for a month. Or, more like, you’ve not stopped since COVID hit.

Some will look back on their income and say it’s all been worth it. Fair play; some owners love being constantly connected to their customers.

Others — up to as many as 80%, according to one report — don’t own a pair of those rose-tinted glasses. Checking their store over Christmas Day dinner? No thank you.

But, what options do you have when you’ve put so much into building an Amazon store, but now want rid? It’s not like you can sell your Amazon FBA business as a going concern, is it?

Actually, you can. And it’s easier and perhaps more profitable than you might think.

Why now might be the time to sell your Amazon private label business

Prior to 2020, selling Amazon businesses appealed to a tiny market. Hidden behind private equity dealers, few merchants even knew it was an option. That’s changed, and some.

Amazon aggregators have forcibly moved buying FBA businesses into the ecommerce mainstream. By doing so, they’ve increased the competition.

This new visibility has tempted investors, who’ve since funded Amazon aggregators to the tune of billions. Now, across the globe, there are getting on for 100 active such businesses.

At the beginning of the curve

Experts, based on history, suggest that there’s a natural arc for this type of investment. They’re probably right. But, right now, it’s early days. We’re still at the beginning of that forecast trajectory.

The expectation, therefore, is for the number of aggregators to double in 2022. So, good news; there are no signs of slowing just yet.

How the price of Amazon FBA businesses has grown

Marketplace Pulse has researched the market now that there’s enough data to make data meaningful. If you sold your Amazon business in the early days, you might want to look away now.

Two years ago, you’d have typically realised 2.5-to-3 times your Seller’s Discretionary Earnings (SDE) in a buy-out. So, if you earned $500k a year, you could expect an offer between $1.25-$1.5m.

Back then, your FBA earnings were pretty much the sole yardstick by which buyers valued your business. Sundries like add-backs and expenses did contribute, but marginally.

Digging deeper into your proposition

Today, buyers look at many other factors about your business before making an offer. In an extension of a basic SWOT analysis, they will take into account:

  • the type of merchandise you sell;
  • your total profit;
  • trend: the trajectory that both your profit and product categories are on;
  • opportunities to add to your brand and grow your position;
  • benefits of adding your brand to others to make a portfolio to attract higher investment;
  • how much competition you have, and your position against them.

There are more factors investors will look at. But, if you tick enough boxes, you could receive 4-to-8 times your SDE. The same business that sold for $1.25-$1.5m two years ago could, potentially, be worth $2-$4m today.

Make 2022 about you

Only you know how you feel about your Amazon business today. Are you looking forward to 2022, or does it fill you with dread?

There’s no harm in finding out what your FBA business might be worth. Do you value your time or the money? It’s a pretty straightforward choice.

We know that half of the big active aggregators have just finished their own rounds of funding. They have money to spend. Their investors have even deeper pockets.

If you fancy some of that action, you’d do a lot worse than starting with our explanatory video. In the meantime, here’s wishing you a very happy holiday and prosperous new year!

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Amazon FBA aggregators amass $13bn in 2 years

Posted on by Amazon Aggregators

Amazon FBA aggregators, buyers of individual online brands, had a decent first year in 2020. Together, they raised $1bn in funding to help them ‘roll up’ online sellers, predominantly Amazon FBA businesses, into saleable portfolios of like brands.

That was 2020. Turn the clock forward another 12 months and that investment figure has rocketed. During 2021, and following a recent funding round by some of the arena’s bigger fish, investors have ploughed a further $12bn into this new style of business.

On average, that means aggregators have realised the same investment every month in 2021 that they did in the whole of 2020. They know that Amazon sellers want to sell up. Their investors know it. And, between them, they offer distraught (or opportunistic) Amazon FBA business owners a way out.

The Big Five drum up >half of all announced investments

Of the 45 aggregators who’ve completed their 2021 funding rounds, almost two-thirds raised over $100M each.

Thras.io, the shark in the pond, raised close to $3.5bn themselves. The other four aggregators who make up ‘the big five’ raised a similar combined figure.

The remaining 40 aggregators combined raised the other $5bn, meaning the big five netted more than half of all investments.

Beyond this clutch of activity, there are at least another forty firms drumming up investment. We can’t wait to see how much they add to this year’s tally.

Here’s how much our favourite five Amazon aggregators have raised in the latest funding rounds:

Recent funding rounds: our top 5 Amazon FBA aggregators
Thrasio Massachusetts, U.S. $3,400,000,000
Perch Massachusetts, U.S. $908,000,000
SellerX Berlin, Germany $767,000,000
Heroes London, United Kingdom $265,000,000
Branded Paris, France $150,000,000
Total $5,490,000,000.00

Flourishing global business in the face of COVID-19

Using recent history as a yardstick, much of the investment will find its way to North American online businesses. But that doesn’t mean all the aggregator action is happening Stateside.

Affluent European countries have become a hotbed of activity. German, British, Dutch and southern European cities have aggregators who know how to sell your Amazon FBA business as part of a portfolio.

Further afield, the Far East is now well-represented on the map with its own Amazon aggregators, as is its Asian neighbour, India. Also, Mexico is showing for South America, and Canada pitching in to the north of the U.S.

So, despite much of the investment destined for the U.S., it’s clear that aggregation is in no way a local business. That said, there are aggregators looking to buck the trend. In Europe and Asia,  local investment, rather than heaping cash into the American market, is catching on.

Amazon FBA business values have more than doubled!

Knowing their raison d’etre, and given the size of investment, you’d be forgiven for thinking that investment comes at the cost of the individual business owner. However, the opposite is true.

These aggregators are run by people and teams from sound financial backgrounds. As proof, the values attributed to the individual businesses have more than doubled over these last two terrific years.

It shows no sign of stopping, either. In 2021, aggregators bought several hundred FBA and other businesses. This market’s moving fast. The prediction for 2022 is that these same investors will buy thousands of existing businesses. They have capital on tap and are looking to spend it.

Will your FBA business be next? We can help you take your first steps to freedom.

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read and represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

Gravitiq Push to Upscale Amazon Medical Brands

Posted on by Amazon Aggregators

Gravitiq has entered the Amazon aggregators space after a generous sum of upfront funding. 

If you haven’t heard of Gravitiq before, let us introduce you to the company from London. Having recently secured funding (some equity, some debt) of 55 million dollars, it follows in the footsteps of aggregators buying Amazon brands and scaling them up. 

Acquiring healthcare brands

There is a stark difference when it comes to Gravitiq, however, compared to other e-commerce aggregators. With the help of a lawyer and some doctors, who actually co-founded Gravitiq, the company hopes to acquire and upmarket healthcare brands.

This is particularly valuable, as the healthcare professionals in the group are well aware of how to push healthcare products. Having done it themselves during 2016. This new idea involving Amazon businesses, however, came about when one of the members was in a hotel to quarantine. 

Streamlined Scaling

The specialisms of the group help potential Amazon brands feel far more comfortable. Naturally, if you’re selling a product to do with healthcare, you’d know you’re leaving it in the good hands of a doctor when selling to an aggregator specifically in that field.

Another benefit was being able to buy brands all in the same sector, which results in cushier scaling. For example, marketing techniques would be easier to aim towards the same category of customers, rather than having to create strategies within various niches. 

If you’re a healthcare brand and looking to sell your Amazon business, Gravitiq may be the company you’ve been searching for. Some of the product areas they’re on the hunt for include vitamins and supplements, baby products, wellness goods, and of course, first aid. 

Can I sell my Amazon business?

So, if you’re sitting at home wondering, “can I sell my Amazon business?”… There are plenty of Amazon aggregators keen on getting involved, just like Gravitiq. The best part is that the ball is in your court. These Amazon aggregators need your Amazon business, otherwise, they’d have nothing to upscale. 

Remember, it’s best not to be too eager and settle for the first Amazon aggregator that comes knocking at your door. Use our Amazon Aggregators comparison tool to see what best fits you and your brand. It takes as little as two minutes!

Further reading:

This website was created by ex-Amazon sellers, Martin Smith and Richard Turnbull.

To learn about our story, our private label FBA brands, and our first-hand experience selling to Amazon aggregators, click here.

You may also wish to check out our 2022 Definitive Guide to Amazon Aggregators.

Written for FBA sellers, this simple, easy to follow document takes less than 5 minutes to read. And represents the culmination of over 100 hours of research into the Amazon aggregator space. To access the guide today, click this link.

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