Last updated on October 18th, 2023
Written by Mohamed Aden
Amazon aggregators are gaining prominence and influence. Through them, sellers like you can achieve your goal to widen your store's visibility and grow your sales. As an Amazon seller, you may have come across the term too and wondered what it means for your business.
This quick guide will shed light on these entities and delve into how they can potentially transform your business. By learning about aggregators, you can better position your business and continue to scale it to the size you've always dreamed of. So, read on!
Aggregators, or acquirers or consolidators, are businesses that acquire and scale private label brands selling on Amazon. They bring abundant resources and expertise, from product listing and operations optimization, and they also have the capital to help scale brands, potentially taking them to new heights.
When aggregators evaluate potential brands to acquire, they consider various factors that can impact their decisions. This section will provide a brief overview of key aspects they check, helping you better prepare your business for possible acquisition in the future.
Enrolling in the Amazon Brand Registry demonstrates a company's commitment to brand protection and provides additional tools to optimize product listings. Aggregators prefer registered businesses, as they can monitor and protect their intellectual property more easily and maintain better control over their brand image on the platform.
Most aggregators prefer brands included in the Fulfillment by Amazon (FBA) program. FBA allows for streamlined logistics, giving aggregators more assurance that orders will be fulfilled efficiently, improved customer satisfaction and sales. They can focus on scaling and optimizing the business rather than dealing with day-to-day operational challenges.
Aggregators look for quality brands operating within profitable and sustainable niches on Amazon. They generally prefer varied SKUs to minimize the risk of depending on a single product. Nevertheless, they still ensure there aren't too many products that can make management challenging.
Proven success in a specific niche, backed by positive customer reviews and a well-rounded product offering, can make your business more attractive to Amazon brand aggregators.
Your company's overall sales performance on Amazon is vital in attracting aggregators. Higher sales volumes, consistent year-over-year growth, and positive customer feedback can catch the attention of potential acquirers. Demonstrating the ability to generate significant revenue showcases your brand's potential for growth.
Aggregators pay close attention to a company with strong profitability, typically targeting businesses with around 15-25% net margins. Higher profit margins and a proven track record of profitability showcase your company's ability to generate revenue and succeed in the competitive Amazon marketplace.
As an Amazon seller, evaluating potential aggregators is crucial before deciding to partner with them. You worked so hard to put your store to its current stance, so you'd want to entrust it to good hands. Here, we'll discuss a few crucial aspects when examining potential Amazon FBA aggregator companies.
Ensure that your prospect Amazon aggregator has a solid track record in successfully acquiring and scaling similar FBA businesses. It is essential to examine their reputation for delivering on their promises, fulfilling acquisition terms, and providing continued support to sellers post-acquisition.
Different Amazon FBA aggregators may follow distinct business models that impact the terms and compensation you'll get. Some may focus on acquiring and building brands slowly, while others may adopt a more aggressive approach to rapidly scale your brand.
Be sure to compare the pros and cons between different aggregators, paying particular attention to aspects like acquisition focus, annual sales requirements, and net profit expectations.
It's crucial to partner with an Amazon FBA aggregator with experience and a successful track record in your product category, be it wellness brands, Amazon private labels, or any other niche.
Some aggregators may specialize in certain product categories, giving them an edge to better understand and successfully grow your business. This expertise will help them implement winning strategies and maximize revenue generation for your brand.
By evaluating the potential benefits of working with aggregators, you can determine if this approach aligns with your long-term goals and the future vision for your business. Below are the benefits and impact of deciding to sell your Amazon business to aggregators.
Aggregators typically have vast amounts of capital, making investing in areas like product development, marketing, and supply chain management easier. By selling your brand and store to an experienced aggregator, you can leverage their networks and knowledge to optimize and scale your business more efficiently.
Aggregators have developed sophisticated data analytics and operational systems to manage multiple brands. You can benefit from their streamlined operations when your business becomes part of an aggregator's portfolio. This can lead to optimized inventory management, improved customer support, and a better understanding of your product's performance in the market. Your sales and profitability will also improve.
One of the main goals of aggregators is to scale the brands they acquire. With their vast marketing resources and in-depth understanding of the Amazon marketplace, these companies can increase your brand's visibility across multiple channels. In turn, this can expand your market reach, help you tap into new demographics, and boost your overall sales.
Working with an aggregator can provide a smooth exit opportunity for you. When you decide to sell your business, partnering with an aggregator can ensure a seamless transition and deliver fair compensation for your hard work and success.
Are you convinced that aggregators may be the way to go for your business? Below is a list of aggregators. We picked to discuss some of the most prominent aggregators you can contact in case you've reached a final decision.
Berlin Brands Group
Cap Hill Brands
GOAT Brand Labs
Monolith Brands Group
Next Century Capital
One Retail Group
Pearl West Group
Plus Ultra Group
The Fortia Group
The Stryze Group
Thrasio is one of the leading Amazon aggregator companies, known for acquiring high-quality FBA brands with focusing on customer satisfaction and product quality. The company aims to scale these businesses and generate higher revenue and profits by investing in marketing, operations, supply chain management, and data analytics.
The Berlin Brands Group is a Germany-based aggregator with a focus on acquiring and scaling up promising Amazon brands. With a strong presence in 28 countries, this company aims to help third-party sellers expand their market reach and optimize their performance marketing strategies.
Perch is an Amazon aggregator focusing on acquiring the top three brands in specific categories and those with established customer reviews. With a diverse acquisition strategy, Perch targets Amazon FBA businesses, offering a broader range of opportunities for successful businesses to grow and prosper.
Benitago is a New York-based Amazon aggregator that offers a comprehensive solution for ecommerce entrepreneurs. With a proven track record in acquiring and scaling FBA businesses, Benitago provides sellers a hassle-free exit strategy, seamless transition, and access to expert resources.
Elevate Brands, led by seasoned experts from Wayfair, Amazon Web Services, and Amazon's 3P business development department, leverages its deep industry knowledge to transform the stores it acquires.
Their strategic focus spans North America, the UK, and the EU, with a keen eye on the pet, grocery, and supplement sectors. With a portfolio of 25+ brands, Elevate Brands consistently achieves an impressive post-acquisition growth rate of 100%, making them a prominent player in the ecommerce landscape.
Cap Hill Brands is a dynamic Amazon aggregator with a mission to unlock the full potential of consumer brands. With lightning-fast response times, they offer an offer within 48 hours and can close deals in as little as four weeks, ensuring a swift and hassle-free transition.
Their unique profit-sharing model allows you to share in future successes. They offer flexibility and partnership options tailored to your preferences. After the acquisition, they leverage their expertise in marketing, product development, brand management, distribution, supply chain, and international expansion to nurture your brand for long-term success.
Unybrands is an Amazon aggregator with a strong presence in Germany, the UK, and the US. Focusing on acquiring profitable Amazon FBA and third-party seller businesses, Unybrands aims to assist these companies in achieving accelerated ecommerce growth and increased revenue.
When you decide to sell your Amazon FBA business to an aggregator, such as Berlin Brands Group, Elevate Brands, or Cap Hill Brands, the process generally involves three main steps:
You'll need to negotiate and sign a comprehensive agreement with the Amazon aggregator. During the negotiation process, both you and the aggregator will discuss details such as the purchase price, which usually weighs factors like your business model, annual sales, net profit, and product quality.
Both you and the aggregator will agree on the expectations and responsibilities of each party post-acquisition. Thoroughly learn about the terms of the agreement. This document will be the basis of your compensation and future partnerships with the aggregator.
After signing the agreement, you'll need to transfer your inventory and intellectual property (IP) to the aggregator. This includes trademarks, copyrights, patents for your brands, and inventory at Amazon fulfillment centers.
The aggregator will typically manage the transfer process to ensure a smooth handover. Provide necessary documents for ownership information updates on Amazon and other ecommerce platforms.
Lastly, successful aggregators often focus on scaling acquired businesses through strategic marketing and advertising. After the acquisition, you may be asked to collaborate on creating new marketing materials, optimizing your product listings, or implementing new advertising strategies to boost sales and visibility on Amazon.
As you work with the aggregator, your knowledge and expertise in your niche can help accelerate growth and generate revenue for both parties.
Entrusting your brand to aggregators is a strategic path to enhancing brand awareness, streamlining operations, and accessing valuable resources. Your journey to business growth awaits, and the key to success may just be in the hands of the right Amazon aggregator. It's time to explore the possibilities and bring your business to the heights you've always wished for.
Partnering with us here at Seller Interactive can significantly elevate your Amazon business. By leveraging our expertise and resources, you'll gain a competitive edge to help your brand flourish.
We offer a comprehensive Amazon full account management service that covers crucial aspects of your business. Our team of professionals will work closely with you to optimize your product listings, implement effective advertising strategies, manage your inventory, and more.
Book a call with us now to know more about our offers.
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