Amazon aggregators, companies using massive capital to acquire and roll up top sellers to gain economies of scale, continue to fall on hard times as market forces have squeezed the model and forced them to shift their focus from an arms race to a profitable growth trajectory. They now look to grow existing brands and launch new products, only sparingly doing new acquisitions, an expert says.
Razor Group, a Berlin-based aggregator of top-selling brands, and Factory 14, the UK rollup which it acquired in 2022, are being sued by two companies and their founders — Kettlebell Kings and Tribe WOD — in interlocking charges of breach of contract and failure to live up to purchase agreements by not adequately funding their growth and expansion.
Talk of consolidation in the overcrowded Amazon aggregator space has come to fruition, as Berlin-based SellerX is acquiring Elevate Brands of Austin, giving the new company a combined portfolio of 80 Amazon brands, 40,000 products and a $431 million run rate. It was the second such deal after Suma and D1 Brands tied up in late May.