Amazon FBA Aggregators Explained: Over $1 Billion in Capital Raised!
Amazon FBA aggregators now what are they why are so many people talking about them and how are they shaping the industry of buying and selling online businesses today in this video.
I’m going to talk about everything going on in the amazon fba aggregator space. I’m even going to share with you one of the aggregators, that’s raised more than a billion dollars and is the fastest company to become a unicorn status so let’s dig in and dive deep into what’s going on with amazon fba aggregators and how this can impact you, whether you’re looking to buy amazon fba businesses or if you’re looking to sell an amazon fba business.
We’re going to cover both of those aspects so let’s go ahead and get started right now.
Now starting off what exactly is an amazon fba aggregator and essentially an aggregator is a heavily funded private company with the main goal of acquiring and growing profitable online businesses and in this example we’re gonna mainly focus on fba aggregators and most of these fda aggregators are doing physical products or somewhere in the e-commerce amazon fba space, sometimes dealing with drop shipping and a lot of these aggregators are starting to get into other industries.
I would say the 80 focus is going to be on companies acquiring profitable companies, that are selling physical products now with fba aggregators getting involved in this space. It’s completely transformed the industry and i’m going to talk about every aspect from how it impacts brokers how it impacts buyers and also sellers now starting off with brokerages.
This is going to put some more competition with people buying and selling online businesses now there’s going to be sellers who want to sell directly to these aggregators and essentially they’re going to be taking away some of that thunder from brokerages but on the flip side because there’s so much more knowledge about how to sell an fba business.
It will probably even out or probably actually be a net positive for brokerages because so many aggregators are getting involved in the space. It’s just letting more people know if you have an fba business.
You have a profitable asset that can be sold and once all these sellers understand that they go out there and do their own research to find where they’re going to get the most money with a brokerage or with an fba aggregator and that’s going to be overall better for the industry it’s going to grow the pie bigger for everyone including sellers and that brings us to our next point.
Is the fba aggregator actually good for sellers or not? Just over the past year alone, multiples have dramatically increased for fba businesses about a year ago. Businesses in fba space were selling around 25 x monthly net profit and now on average they’re selling for 30x and above which is a much higher and huge increase in multiples.
I haven’t seen this big of an influx since I’ve been involved in this industry for the past five and a half years overall i think it’s an absolutely great thing for sellers because it’s just giving people an extra choice to kind of compete so you can get a valuation from a brokerage and get a valuation from an aggregato rand you can just go with the best options.
I think overall it’s great for sellers because they can kind of compete for getting a higher valuation and in the end getting more money in your bank account for your business that a year ago wouldn’t be worth as much as it is today so what if you’re a buyer looking to acquire amazon fba businesses.
This is definitely going to impact you and you’re going to be essentially competing with these aggregators that have hundreds of millions of dollars some cases even billions of dollars and essentially they’re going to be able to move a lot faster on deals they’re going to have a lot more leverage than a normal one or two person buyer that’s looking to acquire their first amazon fba business.
These fba aggregators are true pros they have a lot of experience in the private equity industry they understand how acquisition process works and how to use their leverage to get the best deals and to acquire the best businesses, because they have so much capital.
They have a uniform process they have a lot of other things working for them that are just going to make it a lot more appealing for sellers to to sell their business with these aggregators versus somebody who’s buying their first business.
I would say for buyers it’s going to be adding more competition it’s driving up the multiples and
overall it’s gonna make things just a little bit harder.
If you’re looking to buy an amazon fba business you’re gonna have to move a lot faster you’re gonna have to deploy probably a little bit more of your capital and a big portion of that being front so not as big of an earn out because a lot of these aggregators are able to put up all cash deals, so they’re willing to wait and a lot of these best fba businesses know their value and understand that they can wait out and hold off for a better deal now.
On the flip side looking at the other perspective how this might help buyers is I think the aggregators again are building this bigger pie so there’s going to be a much bigger inventory of amazon fba businesses, because the word’s out that people can sell these assets so looking at at the silver lining that’s going to be the good side for people, who are looking to buy these amazon fba businesses or e-commerce businesses.
There’s just going to be a much bigger influx of businesses but you’re still going to have to move fast you’re going to have to put in a good offer and don’t expect any of your lowball offers to be taken seriously because there is so much competition to buy these good businesses.
So now you’re probably wondering about this aggregator that I talked about at the beginning of the video their name is thoracio and they’ve raised more than a billion dollars and have become one of the biggest aggregators in the space and the fastest company to become a unicorn,which is extremely impressive.
I’ve had the pleasure of working with and even meeting some of the guys at thracio and they are top notch people and if you’re looking for help with navigating this space maybe you have an amazon fba business you’re looking to sell.
My position in this industry is to help you get the most money possible and what i’m going to do here is i’m going to link a video right up here that’s going to show you how I helped one amazon fba seller get more than 200 000 in his exit, so he was navigating waters on his own.
But after working with me we were able to get him an extra 200k in the bank and that was just a great transformation with him.
Go ahead and watch that video if you’re looking to sell your amazon fba business if you’re looking to buy an amazon fba business I’ll leave another video up here for you that will definitely give you some insights on buying and selling online businesses and as always there’s going to be some links in the description.
If you want to set up a free buyer or seller consultation with me there’s some links below where you can do that we can hop on a call and we can see how we can fit and either buying an online business or helping you sell your online business.
So I’ll leave those links below in the description and lastly if you learned something new in this video make sure to give it a like and don’t forget to subscribe take care and thank you so much.
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More About This Topic:
Amazon FBA aggregators are an essential part of any successful e-commerce business, it is essential to know what they are, why so many people are talking about them, and how they can be shaped to help you get the results you want in your e-commerce business. .What is Amazon FBA?Amazon FBA, or Fulfillment by Amazon, allows entrepreneurs to sell their products on the website and have them shipped to an Amazon warehouse. In other words, if you have a product that you want to sell online, but you don’t have the space or infrastructure at your business to stock and ship your items.