Amazon aggregators are losing steam

After becoming one of the hottest sectors for VCs in 2021, funding for Amazon aggregators is way down.

Ecommerce sales blew up in 2020. Unsurprisingly, Amazon benefitted from the trend.

Amazon aggregators are losing steam

With increased shopping on the platform, a popular new startup sector emerged: Amazon aggregators (AKA “roll-ups”).

Amazon aggregators…

… buy and consolidate brands that sell on Amazon. Housing the brands under one company creates supply-line efficiencies and allows them to negotiate better deals with Amazon.

The 2020 ecommerce boom led to a very frothy funding market for the sector:

  • Thrasio, perhaps the best-known Amazon aggregator, raised ~$3.4B and acquired 200+ brands.
  • Perch, another aggregator, raised nearly $1B and acquired 80+ brands.

Overall, the sector raised $12B+ in 2021, per Financial Times.

But 2022 has been a different story

Funding for the sector has been stuck since the market took a turn for the worse in March, leading some aggregators to focus less on acquisitions and more on growing existing brands.

  • One analyst called 2022 “the year of survival” for aggregators, which could mean consolidation is coming.

If that’s the case, it’s only a matter of time before some aggregators get aggregated.

Topics: Amazon

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