E613: Another Aggregator Bubble? Pattern Files to Go Public

In this episode, Dave delves into the business model and financial performance of Pattern.com, a previous guest on the podcast and the biggest seller on Amazon, as they prepare to go public. He talks about why Pattern's business model is a little odd, and their business statistics like revenue and profit margins. Will Pattern be able to go public? Here's what Dave thinks. 

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Pattern.com is one of the biggest sellers on Amazon, among Anker and Sports Research. 

They are one of the few sellers on Amazon to make it to the top while also filing to go public, but will Pattern succeed? 

Personally, I'm not so sure. 

They have a little bit of an odd business model while also marketing themselves a little oddly. We also explored this in more depth in our blog post here.

The Big Takeaway

• Pattern is one the largest sellers on Amazon, who shifted from selling their own products to becoming exclusive distributors.
• As an exclusive distributor, Pattern buys inventory instead of taking it on consignment.
• Their revenue growth is significant, but profit margins are low.
• Comparing against traditional straightforward business accelerators, analysis shows competitors have better profit margins.
• The company markets itself as a SaaS provider, but operates more of a brand accelerator. 
• The market for brand accelerators is becoming crowded which will make it hard for Pattern to receive new clients consistently.

Timestamps

• 00:00 – Introduction to Pattern's IPO and Business Model
• 05:04 – Financial Performance and Profit Margins
• 09:49 – Comparative Analysis with Other Companies
• 14:59 – Do we think Pattern can go public? 

As always, if you have any questions or anything that you need help with, leave a comment down below if you're interested.

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Thanks for listening!

Until next time, happy selling!