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.
While marketplaces have made it easier than ever to launch a digital-first brand, the process of getting products to a customer’s door has never been more complex, and marketplace aggregators will face challenges and frustrations handling the supply chain complications.
Pattern, which helps brands expand and grow revenue on marketplaces and other channels, has raised $225 million, bringing its total valuation to over $2 billion as it sees its role as a market accelerator as a more logical path to success than the growing ranks of Amazon brand aggregators.