Amazon aggregators have seen massive investment and deal flow since 2020, but the activity has been slowing as the valuations of top sellers has increased, according to a report on M&A activity in the sector from investment banking firm Capstone Partners. There were just 30 acquisitions of major FBA brands in Q1 vs. 159 in all of 2021.
Shopify, a certified rock star of the pandemic shutdowns that saw sales and profits soar as consumers flocked to sellers on its platform, is finding itself challenged in 2022 as growth slows significantly and the ardor of investors has cooled off.
Amazon is taking another step to build its ecommerce fulfillment domination by allowing its 200 million-plus Prime members to purchase products from other retailers, who will be charged fees to offer Prime-like services like free two-day and next-day delivery.
In an effort to lure in more third-party sellers as it battles Amazon’s dominant marketplace, Walmart is offering new sellers a 50% discount on commissions for 90 days, while also extending savings on Walmart’s version of FBA to new signups. Discount are available to new merchants who sign up by May 31 and start selling by June 30.
Too often, ecommerce marketplaces are looked at like a new feature, such as adding search capability. Thus, the marketplace project is not set up to overtake the main business, but pitched as a 12-24-month project to so many vendors.. The perspective is inside out. It’s rarely done outside in, from a customer-first point of view.
Fortia Group is pursing a vacant corner of the brand aggregator market, launching a new financing syndicate that gives entrepreneurs who have exited their ecommerce business an opportunity to invest in aggregators and reap the rewards of their growth.
Marketplaces are no longer just for deep-pocket companies. With headless commerce and API-driven marketplaces, and platforms like Salesforce, Adobe and Shopify, retailers looking to layer in a marketplace to sell 1P/3P products have never had it easier. Hear from two who made it happen, and what the journey looked like.
Marketing is always changing, and it’s hard to keep up with trends. Amazon understands this pretty well, but the ecommerce giant’s phenomenal growth means new challenges for sellers on its 3P marketplace. But help is on the way! Here’s how to set up the ultimate Amazon marketing strategy to stand out from the crowd.
Amazon is providing a new avenue for consumers who receive defective products sold by third parties that cause personal or property damage: Amazon itself will help facilitate the claim process, but the seller remains liable for any damages. Starting Sept. 1, Amazon’s policy calls for consumers to contact Amazon directly to file the claim.
Unybrands, a Miami-based aggregator of successful brands both on and off Amazon, has raised another $300 million to pursue its manifest destiny of acquiring 20 companies in 2021, building out its platform and doubling headcount to 50. Unybrands CEO Ulrich Kratz said the company is tracking ahead of its acquisition goal.