In the ever-evolving world of eCommerce, Amazon aggregators have emerged as a dominant force, reshaping the way brands grow and operate on the platform. These aggregators acquire and manage a portfolio of Amazon brands, optimising their performance and scaling them to new heights. For many Amazon sellers, partnering with an aggregator like Blue30 presents a lucrative opportunity to exit their businesses and benefit from professional expertise. This guide will explore what Amazon aggregators are, how they operate, and why they might be the perfect solution for private-label sellers looking to scale or sell their brands.

What is an Amazon Aggregator?
An Amazon aggregator is a company that acquires multiple brands on Amazon, managing and growing them under its umbrella. The aggregator model involves purchasing successful Amazon businesses, optimising their operations, and scaling them to maximise profitability. Aggregators invest in improving listings, optimising advertising strategies, and leveraging Amazon’s Fulfilment by Amazon (FBA) services to handle logistics efficiently.
Amazon aggregators have gained traction by creating a single domain that offers high-quality products at competitive prices, enhancing convenience for customers. Brands acquired by aggregators continue to operate independently but benefit from the aggregator’s resources and expertise. This often leads to increased sales and brand visibility, making it a win-win scenario for both the aggregator and the original business owner.
How Amazon Aggregators Make Money
Amazon aggregators typically generate revenue through a combination of strategies:
Commission-Based Earnings: Aggregators earn commissions from the sales of the brands they acquire. By enhancing the visibility and performance of these brands, they drive higher sales volumes, which directly translate into increased revenue.
Brand Acquisition and Optimisation: Aggregators often purchase brands outright and streamline their operations. They invest in optimising product listings, running targeted ads, and improving supply chain efficiency to boost profitability.
Long-Term Growth Strategies: Many aggregators focus on scaling brands internationally and expanding their reach beyond Amazon to other eCommerce platforms. This diversification helps to drive long-term growth and increases brand value.
The Role of FBA in Amazon Aggregation
Aggregators rely heavily on Amazon’s FBA service to manage logistics, warehousing, and customer service. By using FBA, aggregators can efficiently handle the fulfilment process, allowing them to focus on scaling the brands through marketing and product optimisation. Here’s an example to illustrate:
Imagine four separate Amazon brands:
Brand 1 sells snowboards
Brand 2 sells skis
Brand 3 sells helmets and goggles
Brand 4 sells winter apparel
An aggregator could acquire these brands and unify them under a single entity that specialises in winter sports gear. By leveraging FBA, the aggregator streamlines fulfilment, reduces operational costs, and increases profitability.
Why Amazon Aggregators are Interested in Acquiring Brands
Amazon aggregators actively seek to acquire brands that have proven sales records, growth potential, and strong market positioning. Key factors that make a brand attractive to aggregators include:
Product Demand: Aggregators are interested in brands that offer products in high demand. Conducting thorough market research and developing unique products that cater to specific customer needs can make your brand more appealing.
Private Label and FBA Integration: Aggregators prefer brands that use private labelling and Amazon’s FBA services, as this simplifies logistics and enhances operational efficiency. Brands that maintain control over their manufacturing and supply chains are particularly attractive.
Strong Financial Performance: Aggregators target brands with solid financials, typically looking for annual sales in the range of £800,000 to £2 million and profit margins between 10-20%. These businesses offer room for growth and improved profitability through optimisation strategies.
Reliable Supply Chain Partnerships: Aggregators value brands with established and reliable manufacturing partnerships. A clean supply chain ensures a smooth transition during the acquisition process, reducing risks associated with supplier changes.
Alignment with Aggregator Strategy: Each aggregator has a specific acquisition strategy, focusing on particular product categories or brand profiles. Brands that fit within these strategic frameworks are more likely to attract offers.
The Benefits of Partnering with an Amazon Aggregator
Partnering with an Amazon aggregator like Blue30 offers several advantages for brand owners:
Immediate Financial Gains: Selling your Amazon FBA business to an aggregator provides immediate cash flow. Instead of waiting for potential future profits, you secure a guaranteed payout based on the agreed sale price.
Enhanced Brand Growth: Aggregators bring extensive eCommerce expertise, investing in PPC campaigns, professional product imagery, and listing optimisation. This accelerates brand growth, potentially leading to higher earnout payments if your deal includes such provisions.
Reduced Operational Burdens: Running an Amazon business can be time-consuming, especially when dealing with supply chain issues, customer service, and day-to-day management. Selling to an aggregator allows you to step back from these responsibilities and focus on new ventures or enjoy a well-deserved break.
Potential for Increased Earnings: Even after selling your brand, you may continue to benefit through earnout agreements tied to the aggregator’s performance. As the aggregator scales your former brand, your earnings from the sale can increase significantly.
Protection from Market Risks: Aggregators absorb the risks associated with market fluctuations, economic downturns, or changes in Amazon policies. Once your earnout is completed, you are no longer exposed to these uncertainties, making the sale of your business a safer long-term financial decision.
The Acquisition Process: How it Works
Selling your Amazon business to an aggregator involves several stages:
Initial Contact and Evaluation: The process begins with either party reaching out. Aggregators often identify potential acquisitions through Amazon sales data. After an initial review of key metrics such as revenue, profit margins, and growth potential, both parties sign a confidentiality agreement to protect sensitive business information.
Detailed Business Analysis: If the preliminary review is positive, a more comprehensive analysis follows. This includes financial audits, operational reviews, and assessments of market positioning and competition.
Offer and Negotiation: The aggregator will then present a valuation based on factors like EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) or SDE (Seller’s Discretionary Earnings). The offer includes a term sheet outlining the purchase price, payment structure, and any earnout provisions. Both parties negotiate terms to reach a mutually beneficial agreement.
Due Diligence: A final due diligence process verifies all aspects of the business, including legal, financial, and operational details. This ensures there are no hidden liabilities and that the business complies with relevant laws and Amazon policies.
Closing the Deal: The final stage involves signing the purchase agreement and completing the payment. This is followed by a transition period, during which the seller may assist with handing over operations to ensure a smooth transfer.
What Amazon Aggregators Look for in Brands
Understanding what aggregators seek can help you position your brand for acquisition. Key criteria include:
Product Demand and Market Fit: Aggregators look for brands with products that customers want. Strong market research and a clear understanding of customer needs are crucial.
Private Label and FBA Use: Aggregators prefer private-label brands that use Amazon’s FBA service, as this reduces complexities in supply chain management.
Sales Volume and Profit Margins: Brands with annual sales around £800,000 to £2 million and profit margins of 10-20% are typically attractive to aggregators.
Reliable Supply Chain: A solid relationship with manufacturers and a clean supply chain are essential. Aggregators are not interested in dealing with supply chain issues post-acquisition.
Strategic Fit: Aggregators have specific acquisition criteria, often focusing on certain product categories or business models. Brands that align with their strategy are more likely to receive offers.
Types of Buyers and Sellers in Amazon Aggregator Deals
Understanding the different types of buyers and sellers can help you find the right match for your business.
Types of Buyers:
Strategic Buyers: Companies that acquire businesses to complement their existing operations, aiming to create synergies and drive growth.
Financial Buyers: Private equity firms and investment funds interested in profitable businesses with strong financial returns.
Amazon Aggregators: Specialised buyers focusing on acquiring and scaling Amazon FBA brands, leveraging their eCommerce expertise.
Types of Sellers:
Private-Label Brands: These sellers develop their own branded products, controlling the entire process from manufacturing to sales.
Third-Party Sellers: Sellers who resell products from other manufacturers. Aggregators are less interested in these due to the complexities involved.
Niche Brands: Brands focusing on specific product categories or customer segments. These are appealing to aggregators looking to diversify or enter new markets.
Established Brands: Businesses with a strong sales track record and growth potential, often commanding higher valuations.
Leading Amazon Aggregators
Here are some of the top players in the Amazon aggregator market:
Perch: Known for its focus on home brands and advanced optimisation techniques, Perch has a portfolio of over 80 brands, including various categories. They invest heavily in ad optimisation, merchandising, and global expansion.
Unybrands: Specialising in brands within sports, lifestyle, personal care, and household products, Unybrands uses proprietary technology to scale brands on and off Amazon, enhancing performance marketing and launching new product lines.
SellerX: Based in Berlin, SellerX acquires brands with high star ratings and year-round demand. Their strategy focuses on brands generating over £800,000 in revenue, and they have a portfolio of over 40 brands selling more than 25,000 products.
Determining the Value of Your Amazon Business
Before selling to an aggregator, it’s crucial to understand your business’s value, which depends on several factors:
Profit Margins: Higher profit margins generally lead to better valuations. Aim for margins in the 10-20% range, typical for appealing brands.
Growth Trajectory: Demonstrating consistent growth makes your business more valuable. Aggregators look for brands with a clear upward sales trend.
Diverse Revenue Streams: Brands with diversified income, such as international sales or multi-platform presence, can command higher valuations.
Risk Factors: Factors like market saturation, dependency on a single supplier, or significant seasonality can negatively impact your valuation.
Conclusion: Is Partnering with an Amazon Aggregator Right for You?
Deciding to partner with an Amazon aggregator involves weighing the benefits of immediate financial gain and professional brand management against the potential future earnings of running your business independently. For many Amazon sellers, the opportunity to sell to an aggregator offers a path to scale their brands beyond what they could achieve on their own, all while enjoying the security of a lucrative exit.
Whether you’re looking to cash out or take your brand to new heights with expert support, Amazon aggregators represent a compelling option in the dynamic world of eCommerce. Understanding their strategies, valuation methods, and acquisition processes can help you make an informed decision that aligns with your long-term business goals.
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