Aggregators play a crucial role in the journey of Amazon sellers. Thousands of new ecommerce entrepreneurs join Amazon every year, and aggregators help these sellers elevate their businesses to new heights.

If you’ve established your store on Amazon and are looking to take the next step or planning an exit strategy, aggregators step in to offer their expertise.

Amazon aggregators are transforming the ecommerce industry, which is why capital is continuously pouring into these companies.

Aggregators evaluate your ecommerce brand for high-quality products and good customer reviews, value it, and grow it post-purchase. When considering this route for your business, understanding who Amazon aggregators are, how they work, and what they look for in businesses is essential.

In this guide, we’ll discuss everything you need to know about Amazon aggregators and their business models. We’ll also explore the list of the top aggregators in the market today.

Let’s dive in!

Disclosure: This content may contain a few affiliate links, which means if you click on them, I will get a commission (without any extra cost to you).

What Are Amazon Aggregators?

Amazon aggregators, often backed by substantial investment funds, specialize in acquiring and scaling successful Amazon FBA (Fulfillment by Amazon) businesses.

These companies boost the profitability and market reach of their acquired businesses. Their business model revolves around streamlining and optimizing operations, improving Amazon product listings, and expanding into new markets.

Top Amazon Aggregators by Capital Raised

Let’s look at the list of the top 10 Amazon aggregators in the market and find out what makes them stand out from the rest.

Company NameCapital RaisedAbout the Amazon Aggregator
Thrasio$3.4 billionHeadquartered in Walpole, MA
Boasts of driving 2x YOY revenue growth for brands across multiple categories
Razor Group$2.1 billionHeadquartered in Berlin, Germany
Acquired Perch Amazon aggregator in March 2024
SellerX$1.4 billionHeadquartered in Berlin, Germany
Manages more than 50 ecommerce brands selling everyday items
Looking for businesses with great reviews and high growth potential
Heyday$800 millionHeadquartered in San Francisco, CA
Seeks businesses with multi-channel growth potential
Dragonfly$500 millionHeadquartered in Boston, MA
Merama$445 millionHeadquartered in Mexico City
Invests in Latin American ecommerce brands
Growve$400 millionHeadquartered in St. Petersburg, FL
Focuses on health and wellness brands selling dietary supplements, personal care products, and pet care items
Benitago Group$380 millionHeadquartered in New York, NY
Acquired brands see an average YoY growth rate of 30% post-acquisition.
Boosted Commerce$380 millionHeadquartered in Los Angeles, CA

How Do Amazon Aggregators Work?

Amazon aggregators acquire, manage, and scale successful Amazon FBA (Fulfillment by Amazon) businesses. Here’s a detailed breakdown of how Amazon aggregators work:

1. Vet and Acquire Amazon FBA Businesses

Aggregators identify and purchase well-performing Amazon FBA brands. They typically look for businesses with sustainable sales, positive customer reviews, and a loyal customer base.

The primary selection criteria include:

  • Amazon sales: Most aggregators target businesses with $800K to $1 million minimum annual revenues. Others will accept lower revenues.
  • Profit margins: They typically seek businesses with strong financials, including minimum annual net profits of $200,000 to $500,000 and solid profit margins of at least 10-15%.
  • Product portfolio: They prefer brands with fewer number of SKUs (stock-keeping units) that generate substantial revenue and are not reliant on fads or highly seasonal products.
  • Market position: Aggregators also vet your market position, favoring businesses with high product ratings, positive product reviews, and a loyal customer base. You should, therefore, resolve customer issues to remove negative reviews and maintain a positive listing for the best valuation of your business.
  • Market niche: They focus on niche markets where the products have a steady demand and potential for long-term growth​. Some aggregators stick to particular niches, like the aggregator company Growve, which selects health and wellness brands.

2. Optimize and Scale Acquired Businesses

After acquiring your business, Amazon FBA aggregators leverage their resources and expertise to optimize and scale it.

  • They improve operational efficiency by implementing advanced inventory management, streamlining supply chains, and enhancing logistics. This process also helps reduce costs.
  • Aggregators invest in various marketing strategies to increase your brand visibility, expand market reach, and boost sales. These initiatives include optimizing product listings, running ad campaigns, and using data analytics to drive performance​.
  • They may introduce new products or improve existing ones based on market trends and consumer feedback to maintain competitiveness and expand your product line.

Here’s an example: Thrasio, one of the largest Amazon aggregators, acquired Angry Orange, a pet odor eliminator brand. They increased the brand’s revenue from $2.5 million to $23.1 million, helping the original owner exit the business with a profitable deal.

thrasio aggregator acquired angry orange and boosted its growth

Here’s how the aggregator company grew the brand post-acquisition:

  • They improved the product packaging to make it consumer-ready.
  • Thrasio’s marketing team boosted the brand’s visibility and sales through:
    • On-Amazon and off-Amazon ad placements
    • Driving traffic from Facebook and Google
    • Influencer and celebrity endorsements
  • The original 8oz Angry Orange concentrate was a hero product. Thrasio expanded the product line to include a ready-to-use version of their concentrate and introduced a stain removal spray and a bathroom spray.
  • They enhanced product distribution by making Angry Orange products available on the retail shelves of Target, Walmart, Ace Hardware, and True Value stores across the United States.

3. Drive Growth Using Data Analytics and Finance Management

The top Amazon aggregators employ sophisticated strategies to monitor the performance of their acquired Amazon FBA businesses and drive growth.

They use data analytics to track key performance indicators (KPIs) and make informed decisions about inventory, pricing, and marketing strategies​ for your Amazon FBA business.

Their meticulous financial management strategies ensure sustaining profitability and optimizing resource allocation.

4. Offer Attractive Exit Opportunities to Sellers

If you’re looking to exit after hitting target profit numbers, the top Amazon aggregators can offer attractive opportunities to you. You’ll get:

  • Fair valuation and smooth transition: Aggregators provide a fair valuation for your business and facilitate a smooth transition. It often includes a handover period where the original business owner helps integrate their operations into the aggregator's operations.
  • Retention incentives: Sometimes, aggregators also offer incentives for sellers to temporarily remain involved in the business to ensure continuity and stability during the transition phase​.

Amazon aggregator companies continually expand their portfolios by acquiring more brands to capture huge markets. This strategy is essential to stay relevant in the dynamic and competitive aggregator market.

They play a crucial role in the ecommerce ecosystem by acquiring successful Amazon FBA businesses, optimizing operations, scaling them, and providing exit opportunities for sellers.

What Are the Benefits of Selling Your Business to an Amazon Aggregator?

Selling your Amazon FBA business to an aggregator can provide numerous advantages. Here are some key benefits:

  • Access to capital and resources: Aggregator companies are typically well-funded, which means you can access their capital and resources like advanced technology, marketing expertise, and the operational know-how to drive substantial business growth.
  • Fair valuation and attractive exit strategy: They offer competitive valuations for Amazon FBA businesses and often provide sellers with a lucrative exit strategy. You’ll likely receive a fair market price, mostly higher than you could achieve independently.
  • Streamlined acquisition process: They have streamlined the acquisition process for everything from legal paperwork to transition logistics, which minimizes disruption to the business.
  • Operational efficiency: Post-acquisition, aggregators leverage their expertise to optimize your Amazon business operations. It includes improving your supply chain management, inventory control, and logistics, leading to reduced costs and increased sales and profit margins.

    For example, Shirley’s baby products brand, Bliss n’ Baby, was getting too big to handle and grow further. She was facing manufacturing and supply chain issues. That’s when she sold it to the aggregator company SellerX with over 144% YoY net sales growth.
bliss n' baby brand acquisition by sellerx aggregator company
  • Enhanced marketing and expansion opportunities: Their expertise in elevating brand visibility and driving sales can significantly boost your sales on Amazon. Aggregators often expand your product lines and may introduce them to international markets, increasing your customer base and revenue potential.
  • Retainer seller involvement: Some aggregators offer sellers the opportunity to stay involved with the business post-acquisition through consulting roles or performance-based incentives. It allows you to benefit from the continued success even after selling your business.
  • Risk mitigation: Selling your business to an aggregator can mitigate the operational, financial, and market risks associated with scaling and managing your business.
  • Focusing on core competencies: If you’re a seller who prefers to focus on innovation and product development rather than business management, selling to an aggregator can be your best bet. You can dedicate your time and skills to what you do best while they handle the operations and sales.
  • Long-term stability: Aggregators aim for long-term success and stability of their acquired businesses. This approach ensures your business generates consistent revenue and profit.

What Questions Should You Ask an Amazon Aggregator When Selling Your Business?

When selling your business to an Amazon aggregator, ask detailed and strategic questions to ensure you're making an informed decision.

Here are essential questions you should ask:

  1. What product categories do they specialize in?
  2. What are they specifically looking for in Amazon brands?
  3. What is their track record and long-term plan for the brands they acquire? Do they intend to hold, sell, or IPO your brand?
  4. How are they funded?
  5. What is the structure of their payment offer? Is it all-cash, earn-out, or stock options? Do they offer any seller financing or rollover equity?
  6. What does their acquisition process look like? How long will it take? What level of involvement do they expect from you post-sale? Who will be your point of contact?
  7. How will they improve your business post-acquisition in marketing, supply chain, etc.? What is their exit strategy for your brand?
  8. Are there any non-compete clauses or other restrictions that might limit your future business activities?

By asking these questions, you can fully understand the aggregator's business model, evaluate the fairness of their offer, and ensure that their vision and capabilities align with your expectations and goals.

The Challenges of Selling Your Business to an Aggregator

The aggregator market is becoming increasingly saturated, which can impact business valuations. Factors that include market conditions, business performance, and timing are crucial in determining the final sale price.

Additionally, consider your potential involvement post-sale, as some aggregators may require a transitional handover period.

The Potential Risks or Downsides of Selling to Aggregators

While selling your Amazon FBA business to an aggregator can offer numerous benefits, there are potential risks and downsides to consider:

  • Loss of control: Once you sell your business to an aggregator, you may lose control over its operations, branding, and strategic direction. It can be challenging if you are emotionally attached to the business or have a specific vision for its future.
  • Cultural clashes: Integrating your business into a larger organization can lead to cultural clashes – differences in business practices, values, and management styles. Choose an aggregator that fits your core values, like Elevate Brands found SellerX.
  • Valuation discrepancies: There is a possibility of discrepancy between your perceived value of the business and the aggregator's offer. Negotiations can be complex, and you may need to settle for a lower price than expected.
  • Performance pressure: Aggregators often have high-performance expectations and may implement aggressive growth strategies. This operational demand can create pressure and stress, especially if you remain involved in the business post-sale.
  • Non-compete clauses: Many aggregators include non-compete clauses in their agreements, which can limit your ability to start or operate a similar business in the future. It can restrict your entrepreneurial freedom and future business opportunities.
  • Long-term Vision: Aggregators may have a different long-term vision for the business, which might not align with your original goals. You should be willing to accept them if you sell your business to the aggregator company.

Understanding these potential risks against the benefits is crucial when considering selling your Amazon FBA business to an aggregator. Be bold enough to negotiate terms that align with your personal and business goals.

The Future of Amazon Aggregators in the Ecommerce Landscape

The future of Amazon aggregators looks promising, with continuous growth expected in the coming years. Trends such as increased competition and consolidation among aggregators will shape the market dynamics.

You should stay informed about these trends to remain competitive, be able to leverage opportunities for your Amazon business growth, and make profitable exits.

Final Thoughts on the Role of Amazon Aggregators

Amazon aggregators play a pivotal role in the ecommerce ecosystem by acquiring, optimizing, and scaling successful Amazon FBA businesses. They offer substantial benefits, including access to capital, operational expertise, and lucrative exit opportunities for sellers.

By understanding how Amazon aggregators work, what they look for in a business, and the potential advantages and challenges of selling to them, you can make informed decisions about your business growth and exit strategies.

As the market evolves, staying informed about the latest trends and top players in the Amazon aggregator space will be crucial for maximizing your business' potential and profitability.

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