The Amazon aggregators have lost popularity. What started as a profitable company now seems to be attracting little investment. According to Marketplace Pulse, Amazon aggregators raised more than $16 billion (€14,908.6 million) in capital in 2021. However, in the last two years, that number has fallen and most of the money raised comes from debt. Now, The original aggregators do not describe themselves as aggregators.
Amazon aggregators are companies that acquire accounts from sellers and brands that already have an attractive volume of business in the market. The plan is to acquire the most successful third-party brands that rely on Amazon’s infrastructure to store, process and ship their products Fulfilled by Amazon (FBA). These independent brands are then managed by a single parent company, which helps them grow and generate higher profits over time.
One of the pioneers Thrasioand the more than 100 companies that followed set out to acquire hundreds of Amazon brands. This emerges from a survey by the investment banking company Fortunet to aggregators in 2021, 1,000 acquisitions planned for 2022. Most aggregators intended to acquire more than 15 companies; However, only a few achieved this goal after many of them ran into difficulties when they realized that operating the acquired companies required much more work than raising capital.
Nowadays, Virtually none of Amazon’s aggregators grow through acquisitions. Most of them do not buy directly or rarely do so. And when it comes to acquisition, a high percentage would buy one large company instead of several smaller companies. This reflects a change in perspective among aggregators, who are now focusing on expanding their existing portfolio, launching products and expanding into new channels.
Since the beginning of the development of this form of business, we can distinguish three phases: Pre-aggregator (before 2021), the Aggregator boom in 2021 And Post aggregator from 2022. The latter does not mean that aggregators as such have disappeared, but the term does, as acquisitions are not the focus. There are even new aggregators that acquire dozens of brands every year, but they are an exception. Next we’ll show you some of the most popular Amazon aggregators.
Thrasio
Thrasio was founded in 2018 and experienced rapid growth. By 2029, he was considered a pioneer of Amazon’s aggregator business model and acquired a large number of smaller retailers, rapidly expanding his business. However, as the Wall Street Journal reports, Thrasio reports I would be on the verge of bankruptcy.
Wait
Wait is the main aggregator of Amazon Digital Native Brands in Southern Europe. Founded in Barcelona in 2020, the company is the fastest growing aggregator company in Southern Europe. The team has more than 30 years of experience in e-commerce, online brand management and Pioneers in acquiring Amazon FBA, FBM and Vendor businesses.
SellerX
Founded in 2020, SellerX has become one of the largest and most successful e-commerce aggregators in the European market. Today manages more than 50 e-commerce brands. Recently, the company announced a deal to acquire Elevate Brands, another US-based aggregator.