Ever since Jeff Bezos launched Amazon Marketplace, third parties have invented new methods of monetizing off the platform besides directly selling products to consumers. For instance, catalog management and providing marketing apps to third-party sellers. Some businesses kept changing within the Amazon ecosystem. An example is etailz that was initially an online dealing with niche products sales and grew into an FBA third-party products retailer.
Are you interested in meeting an Amazon Aggregator to sell your business? You have come to the right place. Once you provide us with your details, we will introduce you to the ideal buyer. We will get you in touch with an Amazon Acquirer that we know suits your company. We will expect you to pay a referral fee.
Identifying the Aggregator to select when you want to sell your business is critical to finding the proper funding and someone to represent your business and brand in the long run. We can help you determine if your venture has the qualities that make it desirable to Amazon acquirers. Moreover, we will help you learn how to sell your company.
Amazon FBA Aggregators
FBA Aggregation is the latest trending business within the Amazon ecosystem. The model focuses on acquiring Amazon small businesses with established manufacturers, suppliers, and a market fit for their goods. Some of the aggregators have raised a significant amount of cash from investors, like A U.S based company, Thrasio. The company has raised $1.6 billion and acquired over 100 businesses with a more than 15000 products portfolio.
The new business structure is attractive due to several reasons. The pandemic has boosted U.S ecommerce sales. Studies show that “21% of the total U.S retail sales in 2020 was ecommerce sales with a record growth of 44% YoY”.
The emerging breed of FBA acquirers strives to become the new generation of multi-national companies with multi-brand consumer items such as Unilever or Procter. Most traditional companies dealing with various product lines did not have strategies before the pandemic. While these firms have succeeded in B2B sales and working with distributors, many are trying to develop effective operational and marketing strategies to excel at online Direct-to-Consumer (DTC)sales.
Due to the pandemic, the supply chain disruptions were a wake-up call that they were at a disadvantage and needed to re-invest with digital transformation to remain in the game. In contrast, acquirers have access to the $300+ billion growing Amazon market. They have proven goods and understand online business, ways of complying with the site’s strict policies, methods of increasing product ranking, and how to get the buy box.
In addition, they have strategies for winning at the supply chain and DTC management and know ways of leveraging data and analytics to choose the most suitable growth strategies for all their items. Unlike the small acquisitions, they have sufficient resources to grow their sales substantially. The purchases mainly focus on Amazon instead of other ecommerce platforms due to the following reasons:
What Do Amazon Acquirers Want?
We have highlighted the top factors that the Aggregators evaluate before investing in your brand. Are you curious about handing off your venture and hoping to choose the right buyer? Read this article to see if your brand fits the bill.
Business registration is vital for Amazon acquirers as it defines your brand’s reputation in the consumers’ eyes and the authorities. Registered companies are trusted and worth investing in because they have a trademark those other businesses cannot claim.
Fulfillment by Amazon (FBA)
Amazon FBA businesses can be managed easily even after ownership transfer because their shipping and logistics are known to a competent provider. Aggregators will want to have seamless transfer when getting a new brand to ensure a smooth process for them and the seller. In addition, they appreciate well-established, proven systems.
FBA ventures assure the buyer of never dealing with third parties. Therefore, it gives your business an upper hand in the eyes of potential acquirers.
If you want to be an attractive acquisition, you should aim for a particular product range. You should not have too many or too few products. A single line product poses risks if the supply chain has issues, production is paused, or if you depend on international producers and shipping and external forces throw you off balance.
The best business plan will deal with a few solid goods, cultivate a strong client base and stellar reviews, and focus on marketing them. Buyers will not want businesses that deal with a wide range of goods but still earn the same revenue as a brand that sells selected items.
The growth of a business in any industry depends on its number of loyal and satisfied customers. The happier your customer base is, the better for your brand. To achieve this, you should provide excellent quality products and implement client outreach programs.
These will help you to get a following while ensuring you have quick and attentive customer service.
Legitimate Marketing Practices
As mentioned, prospective buyers want a stable logistics and smooth ownership transfer process. Additionally, they want to ensure they are not getting a business involved in activities that could cause account deactivation or go against Amazon policies. Your business account should have a clean record to prevent them from risking repercussions. The use of black hat techniques like paying somebody to give fake reviews violates the website’s terms of service.
Your business will have a bad reputation if you are involved in ethical practices leading to account deactivation. More importantly, it would be challenging for you to find an aggregator to acquire your venture.
Type of Products you are Selling
Amazon buyers are interested in brands that sell goods targeting long-term market needs, meaning your product’s popularity will not quickly fade with time. Avoid chasing trends that are in the current cultural climate. When dealing with seasonal items, you should tread carefully. If you have a top-seller monthly that can compensate your year’s sales worth, then your brand is safe and eligible to investors.
Reasons to Sell your FBA Business
Starting an FBA allows you to use Amazon’s customer base and distribution channels to sell goods. The business is attractive to large companies and home-based ventures. Moreover, it offers promising opportunities for aggressive individuals to earn a side income or become business owners. FBA sellers can build their brands since the platform is in charge of all order fulfillment and warehousing. Nevertheless, running the business is hard. Though lucrative, you may still want to sell your business. We have discussed some of the reasons that may fuel you to sell your brand.
You want to Collect Large Profits at Once
You may want to cash out even though your venture has been profitable. You may be ready to pay for a new house, pay a huge debt or take your child to college. Whatever your reason, selling your brand will get you a large lump sum quickly. Depending on your business size and how successful it is, you could get a significant amount of cash in your pocket. Some FBA sellers earn several years’ worth of profit from a single sale.
You require Money for a New Business
Many entrepreneurs begin an FBA business and move on to other investments after finding success. If you are ready to start new ventures, selling your brand is a perfect way to getting the seed capital you need. You can get investment money from a loan, family, angel investors, friends, or venture funding.
But it would be best to start the new business with your capital to prevent you from being answerable to anyone or paying high bank interests.
It is Time to Move to the Next Big Project
Some people are adventurous and innovative and like to learn new things or gain experience from experimenting with different business types. If you think you have learned or earned a lot from your FBA brand, you may want to move to the next stage. Even if you do not require seed capital, you cannot let your business fizzle out. The sale will get you money to begin your project with confidence.
You want to Get Money while your Venture is Successful
There are business owners that start their brads to cash out later. One enough reason to sell your business is if it is profitable and desirable to buyers. New competitors are joining the platform, and the market can shift anytime.
Therefore, if you planned to sell your venture, you better do it while still turning healthy profits. It will give you negotiation power during the sale, making you earn more money.
When you undergo Major Life Transformation
Life changes take place whether we are managing our businesses or working full time. It might be the appropriate time to sell your FBA brand if your circumstances change significantly, making it hard to operate your business. Life changes like getting children and relocating to a new place can impact your ability to manage your business.
Due to changes in priorities, you may no longer be interested in running your brand.
Lack of adequate Energy or Time to Run your Company
It is impossible to get sufficient time and energy to do all the things we want. Even though you are running your business on the side, it is pretty demanding to operate an FBA venture. If you realize that the brand is consuming most of the time you could have spent with friends, family, or another business, it is good to sell it.
After all, selling a successful venture will also be a success as it will bring you lots of cash.
Amazon FBA Business Institutional Buyers
An acquirer is a company that gets the rights to run another business. Third-party business aggregations on Amazon are booming nowadays, and you may have heard about a few names. The entry of institutional investors in the acquisition market for FBA brands s beneficial. The firms are well-funded and professional, but keeping track of them can be difficult as there are plenty of them. Our company has provided you an updated list of some of the FBA acquirers with their details like location.
Thrasio is located in Walpole, USA, and puts brands and ushers the business it has acquired through creative marketing and brand management.
The company is in Boston, USA. It is technologically driven and usually acquires DTC and Amazon third-party brands. It has acquired more than 70 brands and raised $900M+ from investors like SoftBank. A number of its acquisitions came from referrals of satisfied sellers.
It is a global consumer holding firm in Berlin, Germany. It works with e-commerce merchants to acquire and elevate brands. To take the merchants to the next development stage, the company uses significant capital and robust e-commerce expertise. Their focus is on specific categories of products, value enhancement, and excellent customer satisfaction.
Next Century Capital
It is the fastest-growing Aggregator of FBA brands. Situated in the USA, their goal is to enable entrepreneurs to achieve their goals efficiently.
Located in New York, USA, the company buys leading Amazon businesses and elevates them to their maximum potential. They have a firm belief in treating sellers fairly and with professionalism. They have strong investors backing them and pay for the ventures in cash.
Heyday is an Aggregator found in San Francisco, the United States, with a mission to help e-commerce business owners attain greater heights by providing them insights and capital to accelerate their ventures in the marketplace. The company partners with business sellers to purchase and launch successful ventures on digital marketplaces.
Located in Madrid, Spain, the company finances buys and scales the best digital brands globally. They aim to develop the most recognizable ventures in the 21st-century. They select strong brands with passionate founders.
The information we have provided is to enable you to know Amazon FBA Aggregation and make a decision. Remember that every Acquirer is different and specializes in a specific niche of products. You need to have a clear idea of what the buyers will consider when assessing your brand’s value.