Steven Pope (MyAmazonGuy) teams up with Tyler Jefcoat (Seller Accountant) to discuss their prediction that here will be a massive amount of acquisitions and mergers in the Amazon Seller world in 2018 and in the next 3 years. Investors are starting to gobble up brands selling on Amazon, typically brands that are 80-90% of their sales specifically on Amazon.
Amazon is entering the maturity phase.
Amazon is entering the maturity phase. Amazon has grown grown grown and now it’s maturing. What happens when a company like Amazon matures is they make it harder for sellers to participate as a seller on Amazon. Barriers and additional rules like Hazmat reviews, gating, higher threshold metrics that accounts have to adhere to, and increasing fees. It’s now ripe for sophisticated sellers to gobble up competition and bring additional resources into the same house. Investors can bring 5-20 different Seller Central accounts into the same company and have on person to run the following areas just like a single company:
- Marketing & Sales
- Accounting & Finance
- Merchandising & Product Growth
- Customer Service
By bringing multiple brands together, you can have deeper expertise focused in these areas. You can have a rockstar (who you pay exceptionally well) run all the accounts in any of those specific job function. As a single account you wouldn’t be able to afford that expertise. But as a group, you have one person over each of those areas.
So watch our discussion so you can learn what it means for you as an potential investor, or a seller (regardless of whether you are selling your business):