Understanding Amazon Aggregators: How They Can Transform Your Amazon Business

Amazon aggregators are quickly becoming key players in the e-commerce industry, offering Amazon sellers like you the chance to increase store visibility and drive higher sales. As an Amazon store owner, understanding these aggregators is crucial to leveraging their potential benefits for your business. This guide will walk you through what Amazon aggregators are, the factors they consider when acquiring brands, and how you can evaluate them to make the best decision for your Amazon business.

What are Amazon Aggregators?

These companies also referred to as acquirers or consolidators, specialize in purchasing and scaling private-label brands on Amazon. The aggregators bring a wealth of resources and expertise, from optimizing product listings to streamlining operations, and they have the capital to scale brands to new heights. By partnering with an aggregator, you can benefit from their knowledge and investment power, potentially taking your business to levels you’ve always aspired to reach.

Key Factors Aggregators Consider When Acquiring Brands

When evaluating potential acquisitions, aggregators look at various factors that can significantly influence their decisions. Here’s what you need to know to prepare your Amazon business for a potential acquisition:

1. Enrollment in Amazon Brand Registry
Aggregators prefer brands enrolled in the Amazon Brand Registry because it demonstrates a commitment to brand protection and provides additional tools for optimizing product listings. Registration makes it easier for aggregators to monitor intellectual property and maintain control over brand image on Amazon.

2. FBA Registration
Most aggregators favor brands using Fulfillment by Amazon (FBA). FBA offers streamlined logistics, ensuring efficient order fulfillment, which improves customer satisfaction and sales. Aggregators are drawn to FBA brands because they can focus on scaling and optimizing the business rather than managing everyday operational challenges.

3. Product Niche and SKU Diversity
Aggregators seek brands within profitable and sustainable niches on Amazon. They typically prefer a diverse range of SKUs to minimize risk but avoid brands with too many products that complicate management. Success in a specific niche, coupled with strong customer reviews, makes your business more attractive to aggregators.

4. Sales Performance on Amazon
Strong sales performance on Amazon’s solid sales history is vital for attracting Amazon aggregators. High sales volumes, consistent growth, and positive customer feedback signal to acquirers that your brand has the potential to scale and generate significant revenue.

5. Profitability
Aggregators target businesses with healthy profit margins, typically around 15-25%. Demonstrating a strong track record of profitability reassures aggregators that your company can succeed in the competitive Amazon marketplace.

What to Look For In an Amazon Aggregator

When considering selling your business to an aggregator, it’s essential to evaluate them thoroughly. Here are three critical characteristics of reputable Amazon aggregators:

1. Experience and Reputation
Ensure the aggregator has a solid track record of successfully acquiring and scaling Amazon FBA businesses similar to yours. Investigate their reputation for fulfilling acquisition terms and providing ongoing support post-acquisition.

2. Business Model, Terms, and Compensation
Aggregators operate under different business models, impacting the terms and compensation you receive. Compare various aggregators, focusing on their acquisition strategy, sales requirements, and profit expectations to find the best fit for your goals.

3. Expertise in Your Product Category
Choose an aggregator with expertise in your specific product category to maximize your success. Their familiarity with your niche will help them implement effective strategies to grow your brand and maximize revenue.

How Aggregators Impact Amazon Sellers

Collaborating with an aggregator can bring several benefits that align with your business goals:

1. Access to Resources and Expertise
Aggregators offer substantial resources, including capital for marketing, product development, and supply chain management. By partnering with them, you can leverage their networks and knowledge to optimize and grow your brand.

2. Streamlined Operations
Aggregators utilize advanced data analytics and operational systems to manage multiple brands efficiently. Joining an aggregator’s portfolio means benefiting from streamlined processes, improved customer support, and enhanced inventory management.

3. Increased Brand Visibility and Market Reach
Aggregators focus on scaling brands, leveraging vast marketing resources to enhance visibility and expand market reach. Reaching new audiences, and collaborating with aggregators can help you access new demographics and boost sales. 

4. Smooth Exit Opportunities
If you’re looking to exit, aggregators provide a smooth transition, offering fair compensation for your business. This makes the exit process seamless and rewarding for you as a seller.

Key Players in the Amazon Aggregator Space

Ready to explore aggregators? Here are some prominent aggregators known for acquiring and scaling Amazon brands:

• Thrasio: Specializes in acquiring high-quality FBA brands, with a focus on customer satisfaction and product quality.
• Berlin Brands Group: A Germany-based aggregator with a strong presence in 28 countries, helping third-party sellers optimize performance marketing.
• Perch: Targets top brands in specific categories, offering diverse acquisition opportunities.
• Benitago: Provides a comprehensive solution for e-commerce entrepreneurs looking for a hassle-free exit strategy.
• Elevate Brands: Led by industry experts, Elevate Brands focuses on growth through strategic acquisitions in North America, the UK, and the EU.

The Process of Selling to an Aggregator

Selling your Amazon FBA business typically involves three main steps:

1. Negotiating and Signing a Comprehensive Agreement
This step involves discussing the purchase price and setting expectations for both parties post-acquisition. The agreement outlines key aspects such as compensation and potential future collaborations.

2. Transferring Inventory and Intellectual Property
After signing the agreement, you’ll transfer your inventory and IP, including trademarks and patents. Aggregators take care of the transfer process, ensuring a smooth and hassle-free transition.

3. Collaborating on Marketing and Advertising Strategies
Aggregators may ask for your input in creating marketing materials and implementing advertising strategies to boost your brand’s visibility on Amazon.

Partner with Pro Seller Marketing

Partnering with the right aggregator can elevate your brand, streamline operations, and unlock new growth opportunities. But to maximize these benefits, you need a strategic approach.

At Pro Seller Marketing, we offer comprehensive Amazon full account management services designed to optimize every aspect of your business. Our team of professionals will work with you to improve your product listings, implement effective advertising strategies, manage your inventory, and more.