Amazon aggregators: a business of businesses

02/09/2021
  • Marketplaces generate business around them and there are always those who are willing to invest in them. This is the raison d'être of Amazon aggregators. Let´s start.

  • I think the title of this post sums up very well what we are going to talk about. In a similar way to what happens with startups that are acquired by companies and conglomerates with greater resources, there is a similar operation but exclusively within Amazon and you will probably be interested to know about it.

    With the number of new sellers and companies that are becoming established in this marketplace every year, it is logical that investors put the focus on it in one way or another.
  • What is anAmazon aggregator?

  • Amazon aggregators are companies that aim to make acquisitions on Amazon, buying accounts of sellers that already have a minimum and attractive volume of business.

    It is important to take into account some aspects because, logically, not all sellers are interesting or eligible. Although each aggregator has its own parameters, what they are looking for is viability and a margin for growth.

    Assuming that, in addition to your eCommerce on Oleoshop, you have a seller account on Amazon that is giving you good results, and assuming that you want to sell to one of these aggregators, keep in mind that they will require you: 

    • Turnover over 500,000 euros (some raise this figure to double, it is not a standard).
    • A profitability usually between 18% and 20% once all Amazon fees, product investment, marketing... are paid.
    • They have to be sellers (FBA, FBM or Vendor), never distributors. After all, what they are looking for is the basis of the business to work it on their own.
    • E-commerce niches that are profitable and not "conflictive". By the latter we mean that they do not have a high level of returns, for example.
    • Good rating by users in their reviews and by the platform itself as sellers.
    • Minimum seniority. They need a track record that supports you, a relevant history.

    In short: these are acquitted businesses. It is not that they are rescuing or refloating those that are loss-making. The goal of Amazon's aggregators is short-term profitability.
  • How do Amazon aggregators work?

  • Amazon's aggregators are constantly scouring the small closed universe that Amazon has become. They look for companies that fit their viability and projection parameters, and evaluate the risks (something vital in Amazon, where you are always on edge when faced with an algorithm change or an action by the platform or the competition).

    When they are interested, they contact the owner or manager and, after reaching an agreement with him, he becomes part of their portfolio of projects. There are multiple ways of doing this: while in some cases the former owner dissociates himself completely from the business, in others he becomes an "employee" of the aggregator and continues with the day-to-day management and operation of the brand.

    The next step is to start managing and scaling to increase profitability. They take advantage of their knowledge and greater resources to optimize product listings or catalogs, carry out advertising campaigns, open the product to internationalization by entering other Amazon marketplaces where it was not already present...
  • Main Amazon aggregators

  • There are currently several platforms for this type of investment, also known as "Amazon Exit". Let's take a look at some of them.
  • #1 – Thrasio

  • Thrasio is one of the strongest companies you can find. They have been active since 2018 and according to their own statement, they have invested more than $200 million in buying businesses that are leaders in more than 60 different categories.
  • If you meet the requirements and contact them, one of their analysts will perform an audit and they will send you the offer with their conditions.
  • #2 – Acquco

  • Acquco claims to make it easier for you than anyone else. They actually work in the same way as Thrasio, so there is contact and evaluation of the proposal by both parties.
  • The best thing about this aggregator is that they are very fast. Most of the transactions are closed in less than a month: in 30 days all the legal aspects are solved and the money is credited to the seller's account.
  • #3 – Yaba

  • The fact that really makes the difference is that Yaba, unlike other alternatives already reviewed above, operates specifically at the southern European level.
  • It is a company created in Barcelona by a handful of entrepreneurs with proven experience and very powerful projects behind them.
  • Are you planning your Amazon exit? Do you have other projects you want to dedicate yourself to? This may be the alternative you were waiting for to do it with guarantees and profitability.

  • Images | Unsplash and aforementioned brands.

Miguel Nicolás


Miguel Nicolás O'Shea is a life-long copywriter (more than 15 years working in agencies) and a specialist in Search Marketing (SEO and PPC). From now on, he will contribute with his online marketing experience to Oleoshop, publishing regularly.

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