The real story here is in the second line of the article below:

“Amazon’s dominance of e-commerce has spawned an entirely new sub-economy.”

Not only has Amazon’s dominance of e-commerce created a world in which aggregators can acquire more and more brands to create a huge valuation, but it has also created a space for business owners to sell their businesses in a competitive market.

Services like Flippa claim to provide the ability for businesses to negotiate with more than one brand, and they may do just that. However, it’s often even better to take control of the entire process and run it professionally and competitively.

If you are interested in taking control of your own exit, schedule a complimentary exit strategy consultation here.

  • The business of gobbling up top Amazon sellers is hot right now as VCs pour billions into aggregators.
  • Now, a new matchmaking service that pairs aggregators with the best FBA sellers has launched.
  • Flippa, the startup behind the service, has added 21 aggregators including giants like Thrasio.

    Amazon’s dominance of e-commerce has spawned an entirely new sub-economy.

    Digital-first brands that sell everything from weighted blankets to iPhone cases have drawn attention from aggregators, cash-rich businesses dedicated to buying up the site’s biggest sellers.

    Now, that sub-economy even has its own matchmaking service that aims to line up online brands with the right buyer.

    Austen and Australia-based marketplace startup Flippa has just launched the service that connects Fulfilled By Amazon (FBA) sellers directly to a network of FBA aggregators, including US heavy-hitters Thrasio and Europe’s SellerX and Berlin Brands Group.

    Flippa, which was founded in 2009, raised $11 million in its first-ever venture-backed round in September 2021 to expand operations amid the pandemic-driven e-commerce boom.

    Flippa, which was founded in 2009, raised $11 million in its first-ever venture-backed round in September 2021 to expand operations amid the pandemic-driven e-commerce boom.

    E-commerce businesses, blogs, SaaS companies, and apps have long been bought and sold on Flippa, which currently has 6,136 live listings. Some 173 of those are FBA businesses, which rely on Amazon’s logistics service to store, process, and ship out products.

    There are 89 FBA aggregators worldwide that gobble up successful FBA brands to operate under one parent company, according to Marketplace Pulse. They have collectively raised more than $13 billion since March 2020.

    “This is the most frothy acquisition market I’ve seen in my time,” Flippa CEO Blake Hutchison told Insider.

    FBA businesses must be valued between $500,000 and $25 million to use the service. Hutchison expects $1 billion worth of Amazon assets to be acquired industry-wide in 2022, and $15 million worth to be processed through his platform.

    It works by first valuing the business. Flippa’s valuation engine crunches 12 years of its marketplace sales data together with a seller’s Amazon data to establish a valuation. The company’s valuation, age, revenue, and product categories are then used to find a match with a relevant aggregator.

    On the aggregator side, a company sets up ‘buyer mandates’ outlining the type of FBA it is looking for. When a match is found, an email is automatically sent out to the head of acquisitions at the aggregator.

    Flippa said this will improve deal flow for aggregators while lowering fees and increasing exposure for sellers. There are currently 21 aggregators on the platform, which Hutchison hopes to grow to 50 within six months.

    Traditionally, Amazon FBA business owners can only sell direct to an aggregator or go through a deal broker.

    “What these business owners are looking for is a fair, impartial process to compare and ultimately sell without having, I guess, the wool pulled over their eyes, or without having some sensibility to what the opportunities are with other buyers, including other competitive aggregators,” Hutchinson said.

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