Off the back of Amazon’s pandemic-fuelled success, a wave of aggregator businesses are buying up smaller Amazon sellers and growing their brands in Europe.

The aggregators are raising funds at a phenomenal rate — last month investors pumped $1.1bn into the sector in Europe in a single day.

But as the quest to become the digital Proctor and Gamble heats up, all might not be as rosy as it seems.

“I see it as a bubble,” says Danny McMillan who runs Databrill, an agency which helps Amazon sellers scale. “There’s more big money in the market compared to good quality brands that they need to buy because they need deal flow.”

Bidding wars are driving up prices to secure the best Amazon sellers. That’s driving up valuations, meaning some say companies are acquiring at a rate they won’t be able to make returns on. And an increase in interest rates ahead could also prove tricky.

Click here to view original web page at sifted.eu