# \[Marketplace Pulse\] The Amazon Aggregator is Dead
**URL:** https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285
**Category:** News for Ecomm Sellers
**Tags:** small-business, brand-awareness, amazon
**Created:** [January 31, 2024, 9:21pm UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285 "2024-01-31T21:21:30Z")
**Posts on this page:** 15
**Page:** 2
### Author:  [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)
#### Post date: [February 1, 2024, 2:43am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/21 "2024-02-01T02:43:55Z")
They won’t go to crap. They will go to the industry norm. Nobody can win on Amazon with an industry norm unless they want to make 10 points.
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### Author:  [@Tried\_Tested](https://sellersasksellers.com/u/Tried_Tested)
#### Post date: [February 1, 2024, 2:44am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/22 "2024-02-01T02:44:20Z")
You can demand a higher multiple if your partner agrees to be vertically integrated into the acquisition - your partner benefits on PV of money at a higher multiple upon exit - you can also cleverly word it to where if your partner sells his manufacturing business it nullifies the pricing agreement - plenty of options - I doubt its gonna be a sticking point if you and partner get 7-8x multiple just on pricing alone.
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### Author:  [@Tried\_Tested](https://sellersasksellers.com/u/Tried_Tested)
#### Post date: [February 1, 2024, 2:45am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/23 "2024-02-01T02:45:45Z")
His margins are asinine and his ad spend is racecar tuned - all he needs is B&M footprint and he’s sitting on a fat golden goose or in this case geese
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### Author:  [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)
#### Post date: [February 1, 2024, 2:48am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/24 "2024-02-01T02:48:05Z")
[ ](https://media.tenor.com/sIIWySsegagAAAAM/curb-your-enthusiasm-larry-david.gif)
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### Author:  [@Gandalf](https://sellersasksellers.com/u/Gandalf)
#### Post date: [February 1, 2024, 3:54am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/25 "2024-02-01T03:54:25Z")
Dang, I’d sell my business in a heartbeat at that rate. We’re not manufacturers or hold any IPs, though.
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### Author:  [@Tried\_Tested](https://sellersasksellers.com/u/Tried_Tested)
#### Post date: [February 1, 2024, 3:55am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/26 "2024-02-01T03:55:40Z")
that’d be the golden key - ip and competitive advantage
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### Author:  [@Gandalf](https://sellersasksellers.com/u/Gandalf)
#### Post date: [February 1, 2024, 3:58am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/27 "2024-02-01T03:58:09Z")
Actually, I got in a call from with of those aggregators in 2021 as well. We are / were very well positioned in our industry but they were looking for brand ownership, which became apparent halfway through the call, making it a waste of time.
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### Author:  [@GGX](https://sellersasksellers.com/u/GGX)
#### Post date: [February 1, 2024, 4:28am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/28 "2024-02-01T04:28:28Z")
That’s because they’re looking to market and build those brands.
For those of you who don’t know, the simplified version of an aggregator is as follows:
They buy a bunch of small brands and then invest a bunch of advertising money to turn them all into big brands. The idea was solid when it was 1 company doing it. When there’s 100 companies all bidding up PPC against each other, they all go bust and Amazon takes all the money in advertising fees.
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### Author:  [@Tried\_Tested](https://sellersasksellers.com/u/Tried_Tested)
#### Post date: [February 1, 2024, 4:57am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/29 "2024-02-01T04:57:39Z")
A bit more complicated…they thought any operator could run them - they learned the hard way that not just anyone can run amazon stores - so they hired a whole bunch of people who couldn’t do their job well as well as managers who were either SMEs or ended up getting the bulk of the jobs - and now if an aggregator has 30 brands that becomes very difficult to manage.
But additionally, capital was cheap and now its not - so it made sense to pay 6x SDE for a store when your interest rate is 0 + 2.5% - not when it’s 10%
Further, when you’re doing such large cap raises - people at the top are going to do whatever they can do take large pay packages and just bounce - which will have the entire house of cards folding
But as a business model being an operator is still a solid choice - the ROI on $'s on very tight margins like mine is about 100% and the ROII is about 57% - which is an insane return (we’re not talking about margins on GMV/Revenue).
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### Author:  [@papy](https://sellersasksellers.com/u/papy)
#### Post date: [February 1, 2024, 5:11am UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/30 "2024-02-01T05:11:56Z")
> [@Tried\_Tested](#):
>
> they thought any operator could run them - they learned the hard way that not just anyone can run amazon stores
⬆⬆⬆ They thought it was set and forget lololololol.
> [@Tried\_Tested](#):
>
> capital was cheap and now its not
People were willing to invest in an experiment.
The experiment failed.
On to the next shiny thing.
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### Author:  [@lake](https://sellersasksellers.com/u/lake)
#### Post date: [February 1, 2024, 8:32pm UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/31 "2024-02-01T20:32:11Z")
> [@ASV\_Vites](#):
>
> Dead? IDK about that. We get approached all the time, including today.
How do you tell the difference between an aggregator and a con man looking to defraud consumers using your IP?
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### Author:  [@Tried\_Tested](https://sellersasksellers.com/u/Tried_Tested)
#### Post date: [February 1, 2024, 8:34pm UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/32 "2024-02-01T20:34:53Z")
Once its sold - it’s not really your problem - unless you’re resolving climate effects, pollution, poverty, war, and the myriad other problems that exist in the world.
So an LOI is a start
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### Author:  [@GGX](https://sellersasksellers.com/u/GGX)
#### Post date: [February 1, 2024, 8:38pm UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/33 "2024-02-01T20:38:55Z")
The con man actually makes money
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### Author:  [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)
#### Post date: [February 1, 2024, 8:40pm UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/34 "2024-02-01T20:40:13Z")
Is this a joke? What’s the punchline? haha and just kidding.
I can’t tell the difference nor do we ever respond to these types of things. The one time we did, it was a sizeable known “business” that reached out and we just wanted to get some thoughts on what they were thinking in terms of value without sharing a single detail.
Most information, including our sales, are easily obtained so they had a pretty good idea already.
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### Author:  [@system](https://sellersasksellers.com/u/system)
#### Post date: [May 1, 2024, 8:41pm UTC](https://sellersasksellers.com/t/marketplace-pulse-the-amazon-aggregator-is-dead/3285/35 "2024-05-01T20:41:10Z")
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