Amazon Aggregators are Booming, But How Many Will Survive?

Amazon Aggregators May Cannibalize Each Other

FBA Aggregators Must Prove They Can Grow Brands

  • Sourcing and shipping: Different brands manufacture products in different factories, different cities, and different countries. Global logistics are complicated enough for one brand, much less a collection of them. One of the most crucial (and elusive) efficiency gains aggregators can make is to consolidate where their brands source products and how they ship them. Consolidation comes with many advantages, yet there are risks, as we saw during the pandemic.
  • Marketing and SEO: Driving traffic to newly acquired brands provides aggregators a rich opportunity to attract new customers in ways beyond search advertising on Amazon. Social media management, listing optimization, and targeted Google ads all play a role in the machinations of brand growth.
  • Technology: Brand management (and all the moving parts involved) rely on a multitude of programs and software. Individual brands will each have their own set of necessary tools. To leverage economies of scale, aggregators need to establish consistent tools and processes across the board, which is a massive undertaking.

Brand Aggregation Demands Comprehensive Marketplace Services

The Survival of the Fittest and Best Equipped

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