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Top Amazon aggregators and their funding

Apr 20

Amazon aggregators are currently one of the most popular trends in eCommerce. These firms buy consumers brand products that have a sizable following on Amazon. Aggregators prefer to purchase companies that are not only lucrative but also establish market leadership via a large volume of favourable reviews and high ranks on Amazon's search engine results page.

Why are Amazon aggregators on the rise?

The rise in popularity of  top amazon aggregators is directly related to consumers' increased desire for microbrands over famous names. Customers today prefer to support smaller firms with compelling entrepreneur stories and a genuine enthusiasm for the unique things they develop, rather than purchasing from conglomerates that mass-produce hundreds of products with little emotion.

Amazon aggregators see value in owning and cultivating consumer-loved brands. Amazon aggregators' owners and partners acquire small Amazon FBA companies from businesses that are ready to sell but lack the skills to expand their businesses themselves.

Below, are some of the biggest and most successful Amazon aggregator companies.

  • Thrasio (USA)

It is a brand value accelerator company that is based in Boston that focuses on brand acquisition and development for the Amazon market.

Thrasio employs around 700 employees, including marketing professionals, professionals of supply chain and vides, as well as development marketers. Thrasio has gained over 100 vendors in the previous 24 months. Automobile parts, baby & child apparel, electronic parts, kitchen, fitness equipment, décor and household, instruments of music, outdoor equipment, personal services, games, toys, skills and pets as well as garage and yard, are all included in the categories.

Among the franchises, it obtained and expanded are Angry Orange Odor Eliminator (growing from $2.1 million to $21.4 million in deals), Beast Gear (growing from $3.9 million to $5.7 million in sales), and Becky Cameron Comforter Group ( growing from $29.3 million to $67.5 million in sales). Their most recent purchase is Bonstato, a Germany based brand incubator.

Revenues are expected to reach USD 1.4 billion in 2021 and exceed USD 3 billion in 2022

Thrasio's latest valuation, after raising more than $3.4 billion, is between $5 and $10 billion, intending to double when listing times come.

  • Alphagreen Group (U)

It is a wellness-focused healthcare worldwide incubation and acquisition company.

Through the group's distribution networks and a vast external channel network, the firm assists brands in scaling.

Brands incubation is based on customer demand as determined by its market and other resources. Distribution occurs via a variety of eCommerce platforms, including direct-to-consumer, Amazon, and affiliates.

The group purchases successful medical and lifestyle brands of the highest calibre. Alphagreen leverages information and its network of partners to certify existing goods, estimate growth in future, and help automate asset management once bought.

Scaling brands via growth hacking knowledge, pre-existing technology infrastructure, and a seasoned workforce.

Yawns, a sleep company, and, Europe's biggest health marketplace, are among its portfolio companies.

The business has obtained £3.5 million in pre-seed financing and a loan facility to aid with acquisitions.

  • Berlin Brands company (Germany)

Berlin Brands company was created in 2005 as the original aggregators. The group, headquartered in Berlin, operates thirty-four e-commerce sites and sells over 3,700 goods every day. Since December 2020, 14 brands have been hatched and others have been bought. The Company works in twenty-eight countries.

Among the acquisition criteria are the following:

  • Revenues ranging from EUR 1 million to EUR 100 million
  • A 4.5-star average rating on Amazon
  • Ideally, the SKU catalogue will contain fewer than 500 SKUs, including high-ranking and best-sellers SKUs.
  • Amazon generates more than 70% of its income.

Kitchen and Home, electronics, Sports, Garden & Do-It-Yourself, craft and art, Toys, Gear, and Utensils are just a few of the categories available. They have raised a total capital of $1Bn. Their investors in equity are Bain Capital, Ardian

  • UnyBrands (USA)

Ulrich Kratz (CEO), Christian Harnischfeger (CFO) and Eugen Miropolski founded the buyer based in Miami in late 2020 to obtain 20 companies each year. The emphasis is on excellence rather than quantity. Household items, personal and pet care and infant products are all areas of emphasis. The objective is to increase brand value by 20% to 40% every year. Presently, 12 companies have been bought in Germany, the United Kingdom, and the United States. Each letter of intent is reviewed and permitted by the Asset Committee before being presented to the retailer. The group employs around forty-five people.

70% to 80% of income must originate from Amazon, to enable the brand to expand outside of Amazon, including eBay, Walmart, and Etsy.

The sales must exceed $1 million, with a cost of things sold margin of around 30% and an EBITDA margin of at least 20%. When seasonality is low then it becomes a critical thing to consider while brand hunting.

Contract sourcing is accomplished by a combination of the flow of broker deals, conference attendance, Amazon scraping, and public relations. They raise total capital of $325m. 

  • Factory 14 (Luxembourg)

It is headquartered in Luxembourg, was founded by a diverse group of former private equity, venture capital, and marketplace experts. It has funded $200 million (primarily in debt) to buy Amazon brands. Professional Motorbike Tool, a cycling group winner, was one of the purchases.

The criteria include that income must come mostly via Amazon, with a minimum of $500k in yearly sales.

A minimum of twelve months of operational experience. Healthcare, personal care, athletics, children and animals, housing & kitchen, and garden are just a few of the categories. The emphasis is on firms registered in Europe and North America. They raised a capital of $200m.

  • D1 Brands (USA)

Its primary objective is to acquire Amazon FBA businesses in the USA, Canada, the United Kingdom, and the European Union. Agnostic to categorization. A minimum of 24 months of operational experience is required. At the moment, the aggregator owns around 20 products.

It divides its study into four categories: brand, advertising, distribution network, and competition. The brand analysis considers factors such as the star ranking of the top five SKUs by the Last Twelve Months of Revenues, as well as the average star rating throughout the whole catalogue, the number of reviews for the top five SKUs, and any review of black activity/product suspensions.

Organic search and sponsored traffic search metrics such as TACOS are included in market research. PPC approach and who is responsible for it. Off-Amazon growth avenues include lists of emails, groups of Facebook, and Instagram followers. Additionally, what frequency does Amazon offer promotions and how fine do they perform?

Details on the Quality Control method and the most recent IPI (Inventory Performance Index) score.

Competition analysis entails the following:

  • Brand protection and ranking of best items in subcategories
  • Analyze your placement in comparison to the competition
  • The normal price point of the best-selling goods

They have raised a total capital of $134.5m

Investors in equity are ID8 Investments, CoVentures and Crossbeam Venture Partners

  • Win Brands Group (USA)

Win Businesses Group, established in 2017, concentrates on purchasing Amazon eCommerce brands in North America, the United Kingdom, and the European Union to increase revenues by 250 per cent within the first 12-months following purchase. The organisation collaborates with entrepreneurs to discover potential areas of value creation and provides a 30-, 60-, or 90-day strategy that addresses brand positioning, supply chain, and public relations. It now has three brands: Gravity, which is focused on sleep, Homesick, which is focused on house scents, and Qalo, which is focused on silicone wedding bands. They raised a total capital of  $50m.