An Amazon aggregator is a company that buys successful Amazon brands, groups them under one roof, and scales them up. Think of them like private equity firms, but they only focus on the Amazon marketplace. They use their capital and expert teams to grow promising businesses, which can be a golden ticket exit for a smart Amazon seller.
What Are Amazon Aggregators and How Do They Work?
If you’ve poured your energy into building a successful Amazon business, you’ve probably reached a fork in the road. Do you keep grinding it out, handling everything from inventory to PPC yourself? Or is there a way to cash in on all that hard work?
This is where Amazon aggregators come in. They’re looking for established Fulfillment by Amazon (FBA) brands with a solid track record, offering sellers a clear path to a profitable exit.
Their business model is straightforward: find great brands and make them even better by using economies of scale. As a solo seller, you might struggle to negotiate better rates with suppliers or fund a huge advertising campaign. An aggregator has the money, the expertise, and the operational power to do both.
The Aggregator Playbook
Most Amazon aggregators follow a similar playbook that unfolds in a few key stages:
- Acquisition: They constantly scout for brands that fit their specific criteria. We’re talking stable revenue (often $1M+ annually), healthy profit margins, and a strong position in their niche.
- Optimization: Once a brand is acquired, the aggregator’s team gets to work. They’ll improve marketing, streamline the supply chain, and fine-tune listings to a degree that’s often out of reach for a single entrepreneur.
- Growth: With a solid foundation, they push for growth. This could mean launching products into new international marketplaces, expanding the product line, or driving traffic from off-Amazon channels like TikTok and Google.
This model is built to operate within the Amazon ecosystem. The aggregator industry is part of a global e-commerce market valued at $4.3 trillion. Amazon itself is expected to generate around $490 billion in gross merchandise value (GMV) by 2025.
Third-party sellers, the main targets for acquisition, are responsible for about $300 billion of that GMV. With roughly 35,000 FBA brands making over $1 million a year, the field is ready for this kind of consolidation.
This visual shows the typical journey an aggregator takes, from first contact to full-scale growth.
It’s a systematic process designed to identify, check, and grow brands to maximize their potential and return on investment.
The Aggregator Business Model at a Glance
Simply put, the aggregator model is about applying specialized expertise at scale. The table below shows their core functions and what it means for the brands they buy.
| Phase | Aggregator’s Action | Goal for the Acquired Brand |
|---|---|---|
| Identification & Acquisition | Vets thousands of FBA brands based on revenue, profitability, and growth potential. Conducts due diligence and makes a cash offer. | Provide the founder with a profitable and clean exit from the business. |
| Integration & Optimization | Onboards the brand into its existing systems. Deploys specialist teams for supply chain, marketing, and listing optimization. | Improve operational efficiency, lower costs, and increase conversion rates. |
| Scaling & Expansion | Injects capital for inventory and marketing. Expands into new channels (e.g., international Amazon sites, retail) and launches new products. | Achieve significant revenue growth and capture a larger market share. |
By centralizing these functions, aggregators can execute high-level strategies across their entire portfolio, something a solo entrepreneur would find nearly impossible.
Why This Model Works
An aggregator’s real strength comes from centralizing resources. Instead of one person trying to be an expert in PPC, inventory forecasting, and customer service, they have entire teams for each role.
This allows them to apply sophisticated, data-driven strategies across dozens of brands at once, creating efficiencies a single brand owner can’t match. For the seller, it’s a chance to see the brand they built reach its full potential, while they walk away with a significant payout and move on to their next project.
How the Amazon Aggregator Market Has Matured
Let’s be real: the Amazon aggregator space is completely different from a few years ago. The “gold rush” is over. That frantic period of aggressive spending, high valuations, and a buy-at-all-costs mindset has cooled down. What we have now is a smarter, more strategic, and more sustainable market.
This slowdown was inevitable. The early boom, fueled by a flood of investor cash, created a very competitive environment. Aggregators were tripping over each other to buy brands, pushing valuations to unrealistic levels. Something had to change.
From Hyper-Growth to Smart Growth
The big wake-up call came when giants like Thrasio had to restructure. When the biggest player in the industry hits the brakes and reorganizes, it sends a message. The old playbook of growth at any cost was officially broken. The focus has shifted from just getting bigger to getting better and more profitable.
So, what does that mean for you as a seller? It means today’s Amazon aggregators are much more selective. They aren’t just impressed by top-line revenue numbers anymore. Now, they’re digging deep into the actual health of a business.
The new playbook for a successful aggregator is built on operational excellence, not just rapid expansion. They’re now looking for brands that are not only successful but also resilient and efficient.
This shift changes what makes a brand an attractive acquisition target. Healthy profit margins, clean financials, and a supply chain that won’t break under pressure are now essential. If you’re considering an exit, understanding this new reality is key to setting realistic expectations.
The New Financial Reality
The numbers really show this market shift. By 2025, the Amazon FBA aggregator market is still projected to hit over $25 billion in annual deal volume, so it’s a huge space. But the deal dynamics have changed. Back in 2023, it wasn’t unusual to see acquisition multiples as high as 6.5 times EBITDA. By mid-2024, those multiples have settled into a more realistic 5.2x, due to higher interest rates and less speculative buying.
Today’s serious aggregators are focused on brands with solid financials. Specifically, they’re looking for businesses with:
- EBITDA margins over 20%: Profit is now the most important factor.
- Owned intellectual property: This means patents, trademarks, or unique supply chain setups that give you a real competitive advantage.
- Stable growth: They want to see a history of steady, manageable growth, not just a few volatile sales spikes.
What This Means for Your Exit Strategy
This market maturity is actually great news for serious sellers. It pushes the speculative, fast-money buyers aside and leaves the well-funded, operationally sharp aggregators who are looking for real, lasting value. They appreciate the solid foundation you’ve built, especially if your focus has been on creating a durable private label brand on Amazon.
As this evolution continues, many experts are watching to see if the Amazon acquisition boom is entering its next, more stable chapter. For brand owners like you, this means that while the wild bidding wars might be over, the opportunity to secure a life-changing exit with the right partner is stronger than ever. The key is building a business with fundamentals that can stand up to the tough questions from today’s smarter buyers.
Getting to Know the Players in the Aggregator Space
The world of Amazon aggregators is not one-size-fits-all. It’s a crowded field with different kinds of buyers, and each one has its own investment strategy, operational plan, and a specific “type” of brand they’re looking for. Understanding who’s who is your first step to finding the right partner for your business.
Think of it this way: selling your brand is like finding a new home for a pet. You wouldn’t hand it over to the first person who showed up. You’d want to know they have the right environment, resources, and experience to help it grow. It’s the same idea here. Some aggregators are huge, well-funded companies, while others are smaller, boutique firms that focus on a specific niche.
The Major Players
At the top are the large, heavily capitalized firms. These are the names you see in the news, the ones that have raised hundreds of millions or even billions in funding. Think of companies like Perch, SellerX, and the restructured Thrasio.
Their strategy usually looks like this:
- Broad Category Focus: They are often category-agnostic, buying brands in everything from kitchen gadgets to sporting goods.
- Large-Scale Operations: They have large, centralized teams handling everything from supply chain logistics to PPC management.
- Ambitious Growth Targets: Their main goal is to build a huge portfolio and use economies of scale to dominate.
For a seller, this can mean access to a global distribution network and resources you could only dream of. The potential downside? Your brand might be just one of many in a vast portfolio, which could mean less personal attention than you’d get from a smaller buyer.
Niche-Specific Buyers
More recently, we’ve seen the rise of smaller, more specialized Amazon aggregators. These firms decided that instead of trying to be everything to everyone, they would become masters of one area. You’ll find aggregators that focus only on specific categories, such as:
- Pet supplies
- Baby products
- Health and wellness supplements
- Outdoor and sporting goods
- Home and kitchen
These niche players bring deep category expertise. They already understand the customer demographics, the right marketing channels, and the product development trends that matter in your space. If you’ve built a great pet brand, selling to an aggregator that already owns five other successful pet brands can be a huge advantage. They speak your language from day one.
The real power of a niche aggregator is their focused expertise. They aren’t just buying another Amazon brand; they’re investing in a market they already know inside and out, which can lead to smarter, more targeted growth.
The aggregator ecosystem has grown, with over 90 active companies around the globe as of 2025. Out of those, at least 53 have announced funding, and 32 have secured over $100 million each. While the U.S. is the main hub, there’s a strong international presence in places like the UK, Germany, Singapore, and Japan. You can get more details on the global aggregator landscape at Saras Analytics. This worldwide spread shows how far the aggregator model has come.
Knowing the difference between these types of players helps you build a smart, targeted list of potential buyers who are most likely to see, and pay for, the unique value you’ve created.
What Makes a Brand Attractive to an Aggregator?
So, what exactly gets an aggregator’s attention? It’s not just about impressive revenue numbers anymore. The market has matured, and now Amazon aggregators are looking under the hood for signs of a truly healthy, scalable, and defensible business.
They’re not just buying your product listings; they’re buying a well-oiled machine they can improve and grow. Understanding their checklist is the first step to seeing your own business through a buyer’s eyes. This shift in perspective can help you focus on what truly builds long-term value.
Profitability Is the New Bottom Line
The number one metric on any aggregator’s dashboard is Seller Discretionary Earnings (SDE). This goes beyond simple net profit. SDE gives a much clearer picture of the cash flow a new owner can expect. It’s calculated by taking your net profit and adding back certain expenses a new owner wouldn’t have.
These “add-backs” typically include things like:
- Your Salary: The compensation you pay yourself as the owner.
- One-Time Expenses: Costs from a failed product launch or a major rebranding that won’t happen again.
- Personal Perks: That personal car lease or family cell phone plan you’ve been running through the business.
Aggregators are looking for a clean and consistent SDE. Most are looking for brands with a minimum of $250,000 in annual SDE, though many of the bigger players won’t even look at anything under $500,000. A strong profit margin, ideally 20% or higher, is a huge positive signal. It shows an efficient business that isn’t just surviving on high volume and thin margins.
A brand making $1 million in revenue with a 25% margin is almost always more attractive than a $2 million brand with a 10% margin. The first one is a cash-generating asset; the second one might just be a lot of hard work.
Brand Defensibility and Market Position
A strong brand is one that can defend its position. Aggregators are very cautious about “fad” products or those in hyper-competitive categories where copycats appear overnight. They want to see built-in protections for your market share.
Here are the key factors they look for:
- Intellectual Property: A registered trademark with Amazon Brand Registry is the absolute minimum. Patents, even design patents, are a huge plus.
- Product Niche: It’s more valuable to dominate a specific, well-defined niche than to be a minor player in a huge category. Think “organic dog treats for small breeds” instead of just “dog treats.”
- Supplier Relationships: Do you have an exclusive agreement with your manufacturer? Is your supply chain complex and hard to copy? These are significant advantages.
A business with powerful branding and high customer loyalty is a prime target. Great reviews, a high rate of repeat purchases, and a solid social media following show that you’ve built a real community, not just a product listing. Investing in your brand’s story is a direct investment in your exit value. For more on building that loyalty, check out our guide on customer retention management.
To give you a clearer picture, here’s a quick rundown of what’s on an aggregator’s evaluation checklist when they’re looking at a potential acquisition.
Table: Aggregator’s Key Evaluation Criteria for FBA Brands
| Metric or Factor | What Aggregators Look For | Why It Matters to Them |
|---|---|---|
| SDE (Seller Discretionary Earnings) | At least $250,000 – $500,000 annually. | This is their main measure of the business’s true cash flow and profitability. |
| Profit Margin | 20% or higher is ideal. | High margins indicate efficiency and pricing power, making growth more profitable. |
| Brand Defensibility | Trademarks, patents, unique niche. | They need to know the brand can withstand competition and isn’t easily copied. |
| Product Diversification | No single SKU generates >50% of revenue. | Reduces the risk of a single product’s failure or suspension crippling the business. |
| Sales History & Age | A stable track record of at least 18-24 months. | Proves the brand has longevity and isn’t just a short-term success story. |
| Customer Reviews & Ratings | Consistent 4.5+ star ratings. | Strong social proof is essential for maintaining sales velocity and trust. |
| Supply Chain Stability | Multiple suppliers, no history of stockouts. | A fragile supply chain is a major operational risk they don’t want to inherit. |
| Amazon Account Health | A clean record with no major violations. | A history of suspensions or policy issues is a massive red flag for future risk. |
Understanding these criteria is like having the answers to the test. It shows you exactly where to focus your energy to build a business that isn’t just successful today, but is also an attractive asset for a future sale.
Operational Health and Scalability
Finally, an aggregator needs to see that your business can grow without falling apart. They’ll look into your operational stability by examining several core areas. A clean operational record makes the due diligence process easier and signals a well-managed company.
They will analyze your:
- Supply Chain Stability: A history of stockouts or relying on a single supplier in a volatile region will raise red flags. Diversified suppliers and consistent inventory levels are huge selling points.
- Account Health: A clean Amazon Seller Central account with few, if any, policy violations or suspensions is non-negotiable.
- Age and History: Most aggregators want to see at least 18-24 months of stable sales history. This proves your brand has staying power beyond the initial launch hype.
- SKU Count: A focused catalog with a few “hero” products is often much more appealing than a large collection of hundreds of SKUs. The classic 80/20 rule often applies; they want the 20% of products driving 80% of the profit.
By focusing on these key areas, you’re not just building a better business for yourself. You’re building exactly the kind of asset that the top Amazon aggregators are actively looking for.
How to Prepare Your Business for a Successful Exit
Selling your brand isn’t something you decide to do on a Tuesday and close by Friday. The sellers who get the best valuations and the smoothest deals are the ones who start preparing months, or even a year, in advance.
Think of it like selling a house. You wouldn’t list it with dirty dishes in the sink. You’d clean it up, make repairs, and stage it to show its best features. Getting your business “sale-ready” is about turning it into a clean, transparent, and attractive package that an aggregator can easily understand and value. The goal is to eliminate red flags and present an operation a new owner can scale from day one.
Get Your Financial House in Order
This is the most important step. Amazon aggregators will put your financials under a microscope, and messy books are the fastest way to kill a deal or get a lowball offer.
You need clean, accrual-based Profit & Loss (P&L) statements for at least the last 24-36 months. While cash-based accounting is fine for taxes, accrual accounting gives a truer picture of your business’s health by matching revenues and expenses to when they were earned and incurred.
Your P&L should clearly break down key costs, such as:
- Cost of Goods Sold (COGS): The direct cost of your products, including manufacturing and freight.
- Amazon Fees: FBA fees, referral fees, and storage fees should all be itemized.
- Advertising Spend: All your PPC costs need to be tracked separately.
- Operating Expenses: Software subscriptions, VA costs, and any other overhead.
A clean P&L allows a buyer to easily calculate your Seller Discretionary Earnings (SDE), which is the foundation of their valuation.
Organize Your Legal and Operational Documents
During due diligence, a buyer is going to ask for many documents. Having everything organized ahead of time in a digital folder, often called a “data room,” shows you’re a serious, professional operator. It makes their job easier and builds trust right away.
Your data room should include:
- Supplier Agreements: Contracts, pricing sheets, and contact info for all your manufacturers.
- Intellectual Property: All trademark registrations, patent filings, and domain name records.
- Corporate Documents: Your LLC or corporation formation documents and operating agreements.
- Key Personnel Info: A list of key employees or contractors and their roles, especially if they are critical to the business.
Protecting your brand is essential here. If you haven’t already, securing your trademark through Amazon Brand Registry is a must. Our guide on the benefits of Amazon Brand Registry explains why this is a critical asset for building a defensible business.
Showcase a Stable and Growing Operation
Aggregators aren’t just buying your past performance; they’re buying your future potential. They want to see a business with a stable, predictable growth trajectory, not one with wild sales swings.
Focus on demonstrating operational stability in a few key areas:
- Inventory Management: Prove you have a solid system to avoid stockouts, which directly kill revenue and BSR.
- PPC Performance: Have clear data on your ad performance (ACoS, TACOS) that shows you can acquire customers profitably.
- Positive Review Velocity: A steady stream of positive reviews shows ongoing customer satisfaction and product quality.
As you get closer to a sale, avoid making huge, risky changes like a complete rebrand or launching into a totally new product category. Stability is what buyers pay a premium for. This whole process is strategic, and for those ready to go deeper, developing a smart business exit strategy is a great next step to make sure you’re covering all your bases.
Reader Takeaway: Start treating your business like an asset you plan to sell, even if you’re not ready today. Begin organizing your financials and legal documents now. This preparation not only maximizes your potential valuation but also makes you a more disciplined and effective business owner in the process.
Navigating the Acquisition Deal Process
So, you’ve done the hard work, built a solid brand, and now an aggregator is interested. What happens next? The acquisition process can feel intimidating, but understanding the steps ahead of time removes a ton of the stress.
The journey from the first email to a closed deal typically follows a clear path. Knowing these steps helps you stay in control and ensures there are no surprises when you get to the negotiating table.
The Letter of Intent: The First Handshake
The first formal step is receiving a Letter of Intent (LOI). Think of this as a non-binding “agreement to agree.” It’s where the aggregator outlines their initial offer, the proposed deal structure, and a general timeline.
This is a critical document because it sets the foundation for everything that follows. It will spell out the purchase price, usually presented as a multiple of your SDE, and break down how that money will be paid. The LOI will also include an exclusivity period, typically 60-90 days, where you agree not to shop your business around to other potential buyers.
Due Diligence: The Deep Dive
Once you sign the LOI, the aggregator starts due diligence. This is the most intense part of the process. Their team will go through every aspect of your business to make sure the numbers and story you presented are accurate. Get ready for a deep dive into your:
- Financials: They’ll want access to your Seller Central account, P&L statements, and supplier invoices to confirm your revenue and profitability.
- Operations: They will examine your supply chain, inventory management practices, and customer service history.
- Legal Standing: This involves verifying your LLC formation, trademarks, and any other official documentation tied to the business.
A clean, organized business makes this stage go much smoother. Any inconsistencies or red flags that pop up here can lead to the aggregator renegotiating the price or, in some cases, walking away from the deal entirely.
Understanding the Deal Structure
Your final payout is rarely just a single lump-sum check. Most deals with Amazon aggregators are structured with a mix of different payment types, designed to balance the risk and reward for both you and the buyer.
Here are the most common pieces of a deal you’ll see:
- Upfront Cash: This is the guaranteed payment you receive the day the deal closes. It’s usually the biggest part of the deal, often making up 60-80% of the total valuation.
- Stability Payment: Think of this as a fixed bonus paid out after a set period, usually 12 months after the sale. It’s dependent on the business maintaining a certain level of performance, acting as an insurance policy for the buyer.
- Earnout: This is a performance-based payment tied to the brand’s future growth. If the aggregator hits specific revenue or profit targets with your brand after they take over, you get an additional payout. It’s a way for you to benefit from the brand’s future success.
It’s important to understand how each of these components works. An offer with a huge earnout might look tempting, but a deal with more guaranteed cash upfront is often the less risky choice. During this stage, it’s also vital to have a clear view of all your business costs, including a complete breakdown of Amazon seller fees, as this will be heavily examined.
Reader Takeaway: The acquisition process is a marathon, not a sprint. Be prepared for a thorough review of your business. Understanding the different parts of a deal structure helps you evaluate offers based on what matters most to you: guaranteed cash now versus potential upside later.
Thinking about selling your brand to an aggregator? It’s a huge move, and it’s smart to have questions. This isn’t a decision you make lightly, so let’s clear up some of the most common things sellers ask.
How Long Does This Whole Process Actually Take?
From signing a Letter of Intent (LOI) to the money hitting your bank account, you’re typically looking at a 60 to 90-day timeline. The biggest chunk of that time is spent on due diligence. This is where the aggregator’s team goes through your business carefully to make sure everything checks out.
If you have clean financials and all your documents in order, things can move much faster. Delays almost always happen when buyers find something unexpected in the books or a problem in your supply chain.
Do I Really Need a Broker to Sell My Business?
Technically, no. You can go it alone. But honestly, working with an experienced e-commerce broker can be a huge help. They do this for a living. They know the market, have relationships with dozens of Amazon aggregators, and know how to structure a deal that gets you the best possible outcome.
Think of it this way: they handle the work of finding and vetting buyers while you keep your focus on running the business. A smooth-running operation during the sale is critical. For most sellers, the broker’s fee is a small price to pay for the higher valuation and better terms they often secure.
What’s Going to Happen to My Brand After I Sell It?
This is the question that keeps founders up at night. You’ve put your heart into building this brand, and the thought of handing it over is tough. Once the deal is done, the aggregator takes over completely. Their in-house teams, who are experts in marketing, logistics, and customer service, step in to run the show.
Some deals include a short-term consulting role for you to help with the transition and make sure it’s a smooth handover. But their goal is to grow the brand you started. They have the resources and capital to scale the brand in ways you probably couldn’t, like launching new products or expanding into international markets.
Reader Takeaway: The sale process is detailed but not a mystery. Getting your business ready before you even start talking to buyers and bringing in an expert broker can make the whole experience smoother and more profitable. It’s all about setting your brand up for its next chapter of growth.
