How Amazon FBA Aggregators Are Changing the Ecommerce Space?
Founder at My Amazon Guy
Table of Contents
What are Amazon Aggregators?
An aggregator is a business that has raised usually 100+ million dollars/euros to go out and buy other Amazon brands.
I estimate more than 7-billion dollars have been raised thus far in the aggregator space. Perhaps as little as 40% of those funds have actually been spent however.
I have personally interviewed 35+ Amazon Aggregators including the 2 largest Thrasio and Perch. I’ve even built the largest aggregator list Amazonaggregators to document everything I know about them.
So,
In sharing my knowledge on this subject, I arguably know more than almost anyone in the entire Amazon FBA community.
The American based aggregators are at least 3 years ahead of almost all of the EU aggregators, and as a result their offers have typically been more competitive as well.
Thrasio is the unstoppable force. Having raised more than 2 of the 7-billion dollars raised in the aggregator race.
Thrasio
Watch Steven Pope Interview Ken Kubecc, VP of Acquisitions at Thrasio
Perch
Thousands of employees are now working at these aggregators and I estimate Perch needs to hire 800-1000 employees within the next 16 months.
Watch Steven Pope Interview Nate Jackson, VP of Acquisitions at Perch
Interest in the aggregators has waned in recent months, and it’s no longer news when a new aggregator pops up or a company announces a seed fund raise of 100-million.
The latest 2 largest seeds of funding were topped by Thrasio and Perch with more than 750-million each.
D1 Brands
Other Amazon FBA celebrities like Adam Heist has thrown his weight behind a more nimble D1 Brands.
3 Things are Certain with Aggregators
1. The value of Amazon based brands is going up
2. The competition on Seller Central has never been steeper, with PPC costs spiking 35% YTD in 2021
3. Half of them will fail by the end of 2023, many of which will roll up to other aggregators.
As an Amazon brand you can safely ignore aggregators, but you can’t safely ignore the brand they buy in your space. Pay attention as their improved packaging increase your PPC costs and steal your market share.
FAQs
Amazon aggregators, also known as “acquirers” or “consolidators,” work to take over a brand’s business and scale it. The goal is to create revenue for the company and its investors and stakeholders.
There are more than 100 active aggregators on Amazon.
A report on the 2020 markets cited three trends for the breakout year: a pandemic that accelerated spending on Amazon, a company raising hundreds of millions of dollars, and another massively growing market size.
Essentially, FBA aggregators buy the successful Amazon accounts from sellers. The account is a mix of things such as their intellectual property and data about their success as a seller on Amazon.
About the Author
Steven Pope
Connect @ LinkedIn
📢 He started his career as a TV reporter in Idaho, then was an eCommerce Director for 10 years for brands ranging from Gold & Silver Coins to Women’s Plus Size Clothing. Steven then created My Amazon Guy, an 100 employee agency which focuses on growing traffic and sales on Amazon. Steven owns MAG, My Refund Guy – a clawback FBA service, and 2 Amazon Brands: Momstir & Age of Sage.