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13-Billion Dollars Raised
Investors are pouring money into the Amazon space. They’re acquiring hundreds of brands and bringing them under one roof, an Amazon Aggregator business.
We’ve seen consolidation in countless sectors historically and the Amazon FBA space is no different. Aggregators are jumping into the market with large funds bringing high levels of professionalism into the brands they acquire and accelerating their growth. The aggregators in turn hope to produce profits for their investors.
The below information can help you better understand who Amazon aggregators are, and how to sell your business to them if you’re interested.
Before exploring the list we must understand a few things.
Amazon FBA Aggregators
Amazon FBA Aggregators What are Amazon Aggregators looking for?
Although every aggregator company has its own criteria,
here are some general criteria your business should meet:
here are some general criteria your business should meet:
- Registered Brands: Aggregators look for brand sellers who are selling their own branded/private labeled products or are the manufacturers of the products. If you need a trademark, you can order one from us and complete your brand registry in under 7 days.
- Fulfilled by Amazon: Most aggregators are purchasing fulfilment from Amazon merchants because they don't want to deal with logistics and because it's easy to qualify for Prime status. Sixty-six percent of the top 10,000 Amazon sellers use FBA, according to Marketplace Pulse.
- Profits and Margins: Each acquirer is different but most require a minimum of $200k annual net profit.* Some require $500k annual net profit.* Most say minimum 15% net margins while others will be okay with 10% net margins but not any lower.
- Number of SKUs: More revenue, fewer SKUs. For example, $1M revenue with 1-2 SKUs is more preferable than $1M sales with 50 SKUs.
- Sales through Amazon: Each acquirer is different. Some ask for a minimum of 80% of sales through Amazon whereas some accept 30% approx.
- Loyal Customers: A loyal customer base is a great sign.
- Niche: Each acquirer has a different niche interest according to their expertise.
- No Black Hat Tactics: You must never engage in activities that may result in a future deactivation of your account.
- Not a Fad: Acquirers look for businesses with a great future scope that don't look like they'll fade out with time.
Why sell your Amazon FBA business?
Selling on Amazon can be more difficult and time-consuming for most sellers than they had imagined. More than half of Amazon sellers are doing their business as a side hustle and one-third as full-time jobs. Limited resources restrict them from expanding their business, hiring more employees, and improving their marketing strategy/funds. Researchers claim that even for Amazon Sellers who are seeing profits find it hard to manage inventory and the supply chain. Meanwhile, aggregators are loaded with funds and a professional team.
Institutional Buyers of Amazon FBA E-Commerce Businesses:
Below is a growing list of Amazon FBA business acquirers, or Amazon Aggregators. They have large funds, and are aggressivly consolidating brands under one umbrella.