With the emergence of COVID-19, E-commerce platforms have grown with great acceleration, and Amazon has become the global leading E-commerce platform. Millions of sellers are competing against each other for attaining market share in the complex ecosystem of Amazon.
In the few years, Amazon Aggregators came into the market with their unique business model. These aggregators raised billions of dollars in funds provided by their investors to implement their business objectives.
Also known as FBA acquirers, these companies received 13 billion dollars in funding by the end of 2021. Aggregators are acquiring small and medium FBA businesses and scaling them to supreme levels for generating revenues for their investors.
Pandemic has unleashed devastating consequences on supply chain procedures. Sellers feel it difficult to meet increasing consumer demand and deal with logistics operations. These supply chain problems are impacting the performance of even potential businesses.
The competition is devastatingly increased in the Amazon platform, and sellers are thriving to manage their supply chain due to the limited production of goods. To tackle supply chain problems, sellers have to spend a large amount of money. It can decline their existing profits leaving them under threat.
If it is difficult for you to manage these situations, then FBA aggregators can buy your business. They will acquire your brand and scale it according to their expertise. Brands acquired by these Aggregators have experienced an increase in their sales ratio above 30 percent after two months of their acquisition.
These Aggregators have extensive financial resources to purchase Amazon FBA brands. They have a team of experienced employees that are E-commerce experts. Aggregators can increase your brand revenues by using their latest technological and E-commerce abilities.
How Aggregators Can Benefit Businesses
In 2021, nearly 2 billion people bought products through online platforms. This increasing number of online shoppers has increased the demand for products. Aggregators have the resources to meet this increased level of demand and nurture their acquired small businesses to meet this demand. Small businesses could never do this on their own.
Aggregators go through a due diligence procedure to testify the potential of your business to grow. They always make sure that the business is a good fit for them and they can take care of it.
FBA acquirers know how to run online businesses, and thanks to their innovative strategies that can absorb and reduce business costs quickly and make the business profitable. As these aggregators acquire your business, they increase its inventory to expand in international boundaries like European countries and other states.
They use and implement their knowledge of logistics and other expertise to reduce shipping costs, develop advertising strategies, and optimize SEO possibilities. These techniques help them to grow acquired business faster. Small businesses cannot raise their business quickly without excessive financial resources.
Aggregators know about building your brands and enhancing customer service. They know that satisfaction of customers is the key to business success. Their team of experts has years of experience in the field of E-commerce platforms, making them capable of scaling acquired businesses.
FBA Aggregators provide excess to international markets by entering new markets. They invest heavily in advertising strategies to make the brand visible to consumers. Consequently, the sales of the acquired business are increased.
The main power of Amazon aggregators is their investment in the latest analytical tools to extract valuable business information. Aggregators analyze the valuation and potential of your business through these analytical tools. The statistics and insights released from these analytical tools enable these aggregators to construct useful strategies for business growth.
The world’s biggest investors provide funding to these companies, and they use this funding to scale brands. It’s clear that these funds make aggregators capable of investing in potential businesses and equal credit goes to the team of experts who use these resources effectively.
These aggregators have the unique advantage of fundraising and the availability of a professional team. These factors make acquired businesses capable of increasing brand revenues within the short term.
Are There Any Challenges That Can Arise for Aggregators?
Businesses can face different challenges in their operational journey that can create hurdles in their growth path. FBA aggregators also have to meet certain challenges in making their business decisions successful.
Before the business acquisition, please don’t go for the business purchase by analyzing its demand. By doing complete market research ensure that the product is not only under high demand but also capable of generating long-term demand.
Don’t ever hesitate to feel pressure to enter the new market. Keep an eye on your competitors working in the same market and make your move when you are comfortable for your success.
When expanding internationally, keep in mind the potential costs associated with that step. You have to pay taxes, shipment costs and face certain complications like Brexit.
Being an Aggregator, you can face different challenges in markets around the globe. Just focus on your strong points and enhance your customer service by knowing their needs and wants. You must ensure that you are fulfilling the customer demand.
Working on these challenges can also make aggregators capable of long-term revenue generation for their acquired brands.
Summary
FBA aggregators have acquired thousands of Amazon businesses and scaled them to optimize their growth and revenues. Having a team of experts, excessive funding, and availability of the latest analytical tools provide them a unique advantage over other sellers operating in the same market.
It’s hard for sellers to compete with these Aggregators due to a lack of financial resources. Aggregators acquire potential brands and implement innovative strategies to handle their growth, resulting in immense revenue generation.
