Nearly $1 billion in fresh capital was committed in 2020 to firms looking to acquire Amazon sellers and brands (money invested is a mix of equity and debt). The market had a breakout year because of three factors: the pandemic accelerating spending on Amazon, Thrasio raising hundreds of millions of dollars, and Anker, an Amazon-native brand, going public.
- January 2021. Former Zulily execs raise $150M for new firm Cap Hill Brands
- January 2021. Thrasio Grabs Another $500 Million To Fuel Shopping Spree Of Amazon Sellers
- November 2020. SellerX Raises $118M to Buy Up and Grow Amazon Marketplace Businesses
- November 2020. Heyday Raises $175 Million to Buy Amazon Businesses
- November 2020. Razor Raises €25 Million to Acquire and Scale Amazon Brands
- November 2020. Heroes Raises $65M in Equity and Debt to Become the Thrasio of Europe
- October 2020. Perch Raises $123.5M to Grow Its Stable of D2C Brands That Sell on Amazon
- September 2020. Boosted Commerce: $87 Million Funding and Acquisition of Six Amazon Fulfillment Companie
- August 2020. Razor Raises €4 Million Seed Round
- July 2020. Thrasio Raises $260M, Reaches Unicorn Status With $1B Valuation
- April 2020. Thrasio Raises $100 Million in Fresh Capital
- April 2020. Perch Raises $8M to Acquire Top Performing ‘Fulfillment by Amazon’ Products and Companies
The capital pouring in is validating the Amazon marketplace as something serious. The businesses that sell on Amazon have grown mainly relying on measurable demand, controllable unit economics, and the predictability the data-rich marketplace provides through tools like Jungle Scout, Helium 10, and others. The firms rolling up those businesses use the same principles to evaluate and value them and grow them post-purchase. The types of companies those firms are looking to acquire are most often private-label sellers that use Amazon as one of their primary sources of distribution (some are also looking at brands using Shopify). There is no demand for resellers, nor do other marketplaces play a significant role.
Amazon-dependency is both the most significant risk and the fuel that powers those firms. But there are dozens of additional challenges yet to be resolved. For example: transferring the scrappiness of a one-person seller to an employee of a firm, long-term risk of brands on Amazon, building a brand vs. being operationally efficient, buying brands vs. building brands in-house, avoiding suspensions, and others. Money for most of those firms came first; they will spend the next year figuring out the model that could work and scale.
There are 34 companies in this list. Most are based in the United States; however, there are also companies operating in United Kingdom, Switzerland, Germany and Spain.