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Amazon FBA Aggregators & Rollups

April 9, 2021 in Blog
Amazon FBA Aggregators and Rollups

As the ecommerce business is booming, also many acquisition companies have emerged.

In this article, we’ll examine what an FBA aggregator is (also known as an FBA rollup), what they are looking for and a list of all of the FBA aggregators out there.

Related Listening: Episode 364: The Controversy Behind the FBA Rollup Strategy

Institutional Buyers of Amazon FBA Ecommerce Businesses

There are countless rollups out there but we’ve compiled a list of some of the most popular Amazon FBA Rollups in a spreadsheet:

What’s an FBA Aggregator?

FBA Aggregators or Rollups are a group of investors that are interested in buying tons of Amazon FBA businesses willing to both exploit economies of scale by bringing them all together and also capitalizing on low selling multiples.

Entrepreneurs have always talked of selling their e-commerce company at some point in their business journey. If you don’t know how to start we recommend you to read our guide on How to Sell Your Ecommerce Company For Top Dollar.

When you decide to sell your business, you might be surprised how many investors are willing to pay you a good amount of money in exchange for your business, such as FBA rollups or eCommerce rollups.

What are Amazon FBA Business Acquirers Looking for?

Lately, acquisition companies have started buying up Amazon third-party storefronts with the purpose of building lucrative portfolio businesses and with the goal of growing them to the next level. 

Each Amazon FBA Business Acquirers has its own criteria, but there are some general requirements that everyone will have to follow, such as:

  • Private Labeled Products: You sell your own branded products – most rollups aren’t looking for retail arbitragers or drop shippers.
  • Brand Registry: You have registered under Brand Registry your trademarks, i.e. you have a defensible brand.
  • Sales: depending on the acquirer, but some will ask you a minimum of 80% of sales through Amazon and some others will ask you a minimum of 30%. It’s one case where diversification isn’t always a selling point.
  • Margins: Will depend on each acquirer, some will require a minimum of 15% net margins and some will be agreed with 10% net margins, but definitely not lower.
  • Amazon Fulfilment (FBA): Many sellers are still merchant fulfilled but the majority of rollups are looking to avoid brands that rely on in-house logistics. Being part of the Fulfilled by Amazon program will be one of the strong points of valuation since most of the acquirers don’t want to deal with logistics services and because of the simple reason that your product/s will have Prime status.
  • No Black Hat Tactics: If you have made a deal with the devil that may result in the deactivation of your account, no acquirers will want to have to do with it.
  • Not a fad: acquirers want a forward-looking business, nothing short-lived. Acquirers are looking for businesses and products that have a great scope that sells today and tomorrow.

Have you sold your ecommerce business to any Amazon FBA acquirer? How was your experience? Tell us about it in the comments section below.

  • About The Author: Helena Fernandez Morano
    Specialized in Marketing, Consultancy and Political Communication. She presumes to belong to a very talented pool of political scientists, who always manages to create new paths in the midst of uncertainty. And that spirit marks her trajectory. When she is not writing and immersing herself in the eCommerce world,  she is seeking to be part of projects with scope, to be accompanied by people from whom to learn every day and with whom to experience new challenges.

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2 Comments

  • Charlie
    April 13, 2021 Reply

    Hi Guys,

    We were hoping to get some direction to an ongoing issue.

    1. We are a New Zealand company (Limited Company)

    2. We will soon be required to get Liability insurance as per Amazon's policy/requirements

    3. As we are a New Zealand-based company - do you have direction, as to various insurance businesses who would insure us ?

    4. What we have found recently - is that USA - based insurance companies, will only insure us, if we have a US-based LLC + EIN + US-mailing address

    5. As Canadian companies yourselves - maybe you have found insurance businesses that have both met your needs, & maybe ours too !

    Best Regards,
    Charlie. B

    • Dave Bryant
      May 5, 2021 Reply

      Get insurance from a local NZ broker. You're going to pay through your teeth but you can get it. We did.

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