Amazon Aggregators List to Sell Your FBA Business

Selling your FBA businesses to Amazon aggregators is a great step in the right direction if you want to sell your business and make an exit or want to sell part of your equity to take some chips off the table. Amazon FBA aggregators have gained significant popularity in the last few years, with some launched within the last year. They have huge capital to spend on Amazon FBA businesses and are always searching for brands they can invest in. Explore the benefits and considerations of selling your Amazon business to an aggregator, including valuation factors and deal structures.

What are Amazon aggregators?

Amazon aggregators are big firms with large capital to acquire and scale Amazon businesses. They are also known as consolidators or acquirers. They invest their funds in any Amazon FBA attractive to them, scaling the business to a level that will generate continuous revenue for the company, stakeholders, and investors. Aggregators know and understand the type of FBA business to acquire and what it takes to expand the company. For example, Thrasio is an example where they’ve purchased so many brands, they understand what works and what doesn’t. If your main business is as an Amazon seller, get to know the big names in this space to take the next step when the opportunity arises.

The Process of Acquisition and Scaling

Learn about the rise of Amazon aggregators and their role in acquiring and scaling Amazon FBA businesses. Once they acquire your Amazon business, they will work on every aspect of your business to holistically scale it, including keyword research, listing optimization, SEO, PPC, product research, etc. Understand the process of working with Amazon aggregators, including due diligence, negotiations, and post-acquisition integration, to maximize value and achieve a successful exit strategy.

Technically, this is what they should do, but it doesn’t always happen. With the sheer number of acquisitions these companies make, don’t expect your product or brand to get the love it deserves. From others’ experience, products go out of stock shortly after, aggregators are not able to order on time, the rank drops, the sales drop, and your final payout can drop if you decided to do a performance-based earnout.

Market Trends and Valuation Multiples

With so many aggregators entering the space, it became crowded, and exit multiples skyrocketed and they chased the sellers. Many aggregators are feeling the pinch of overpaying for acquisitions, struggling with supply chain, and now cutting back on acquisitions and the crazy shopping spree. Knowing what you could get and who the major players are will help you move quickly if you need to sell. The current shift in multiples is as follows:

• Previous Exit Multiples: 3.5x ~ 6x
• Current Top End Multiples: 3.3x ~ 4x

That’s a big drop. But all is not lost.

Benefits of Selling to Aggregators

Aggregators pave the way for small-scale Amazon businesses to exit the business with cash in their pockets in a private transaction. Since aggregators have enough funds, they do not resort to external financing to acquire a brand, making the acquisition process smooth and fast. Deals can close in 30 days or less if your financials and data are organized and ready to go.

There are many reasons for selling, but ultimately, it is to take chips off the table or walk away for most Amazon sellers:

• Sick of the daily grind?
• You have a winner but can’t keep up?
• Want to get out before a crash?
• Do you know someone else who will want it in their portfolio?
• Want to take some money off the table and operate as a partnership?

If the product has thousands of reviews, high sales velocity, and ranks high, someone will be interested in buying it. Most aggregators only pick the best of the best brands with clearly defined potential to transform them into international businesses. If you attract an aggregator to acquire your company, you can rest assured that your business will be one of the best in your target niche.