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Amazon is a huge marketplace with different types of players. Just like individual sellers and brands who sell products, Amazon also caters to the giant enterprises that are there to invest and acquire brands.
In this blog post, we'll explore the top Amazon aggregators to watch out for in 2023 and help you make an informed decision about partnering with them.
So, let's dive in and explore the exciting world of Amazon aggregators!
Amazon FBA aggregators, also known as Amazon Acquirers or Amazon Consolidators, are companies who purchase individual FBA brands and put them all under one roof.
The aggregators choose to purchase brands that sell related categories of products and will do better if sold together. For example, consider brands A, B, and C that sell mosquito nets, mattresses, and beds. If an aggregator buys all three brands, they can sell them together and make much better profit.
Amazon Aggregators search for brands to acquire, no matter if they are enrolled in Amazon Brand Registry or not. These aggregators act as large investment institutions to help small brands grow with their expertise and finance.They owns better resources, technology, and supply chain to scale up the brands they buy.
There are around 90 major aggregators globally at present, and a majority of them are based out of the US. There are also companies operating from the UK, UAE, Germany, Finland, Belgium, Mexico, Canada, China, India, France, Israel, Japan, Portugal, South Korea, Spain, Switzerland, Turkey, The Netherlands, Luxembourg, and Singapore.
Thrasio is one of the big names in the industry. It was the first company in the US to touch the $1 billion valuation. Since Thrasio is a huge entity, it is looking for businesses whose annual revenue is at least $1 million.
Perch is only interested in quality products, instead of specializing in a specific category. Their portfolio consists of brands under the categories of toys, home and kitchen, health, and beauty.
HeyDay: They are looking for multi-channel growth, therefore acquire brands both on and off Amazon. They are not particular about specific categories but category leaders with unique products.
Mantaro Brands purchases Amazon brands that are purpose-oriented and environment-friendly. This is because they believe in the power of such brands to cause long- term impacts.
The minimum annual revenue they look for is $500K. They claim tTheir buying process is transparent and typically takes 30 days.
Apart from these major aggregators, there are several other significant players in the industry. Here is the list:
Amazon brand aggregators research a lot before purchasing a brand. They often look for brands with scope for growth. The Aggregators make use of expert knowledge, Amazon’s performance metrics, third-party tools, and sophisticated data analytics to learn about the brands before purchasing . If only their findings are satisfactory,, they make an offer to the brands.
There are several major factors an Amazon Aggregator never wants to compromise with when they purchase a brand.
They often approach the Amazon FBA brands because these brands are benefited greatly by simpler logistics and Amazon Prime features.
The Aggregators look for brands that own a minimum annual net profit between $200,000 and $500,000. The net margins they aim for may vary between 10% and 15%.
Positive reviews by customers play a major role in the Aggregators’ evaluation of your brand.
Most aggregators often look for niche items to target. But that does not mean you need to introduce a new category of items to sell your brand to an Aggregator. You can always find a suitable aggregator instead.
Aggregators look for products with a consistent demand over time. It gives the brands extra points.
A loyal customer base is always a plus point for a brand.
The number may vary among different aggregators. But, in general, the aggregators look for brands with around 80% of the sales done through Amazon.
Aggregators always look for quality products. Even if the number is lesser, they will find your brand appealing if you have one or two high-revenue ASINs.
Aggregators are looking for brands with higher prospectus of success on Amazon. Making your business more appealing to the aggregator will help you while dealing with them. Here are ten tips to make your brand more sellable.
Aggregators only purchase brands with promising growth prospects on Amazons. And, they conduct thorough analysis of the brands’ performance before purchasing.
Here are the different stages of an aggregator’s business model.
When you strongly feel that your business has attained its maximum potential, you should seriously start thinking about selling it to another entity. Your business may expand more if it is with another team with different insights, strategies, and technologies.
Choosing the right aggregator for your brand is tricky. You can not choose one with a conflicting interest. The Aggregator you choose should be capable of taking your brand to the next level.
There are successful aggregators as well as those who are struggling. You can find the right one for you by continuous conversion, researching their track record, and analyzing the current performance of brands they previously acquired.
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