Ecommerce aggregators
Ecommerce aggregators, and the other way to sell.
An ecommerce aggregator buys several small online brands and runs them together. Here is how that works, how it differs from a broker or a direct buyer, and what to ask before you sell.
What an ecommerce aggregator is
An ecommerce aggregator is a company that buys small online brands, most often Amazon FBA brands, and operates them together under one roof. The idea is to share what a single small brand struggles to afford alone: sourcing, logistics, advertising and finance. The model took off around 2020 and 2021, when a wave of funded roll-ups began buying third-party seller brands at speed.
What happened to the aggregator wave
Online shopping growth slowed as pandemic-era demand cooled, and several of the best-known aggregators bought less, restructured or closed. Thrasio, one of the largest, filed for Chapter 11 in February 2024, citing slowing ecommerce growth and economic uncertainty (CNBC). The market is smaller and more selective than it was, and each aggregator has its own criteria.
How selling to an aggregator usually works
You share your numbers, the aggregator reviews them, and if there is interest you get a letter of intent, then a detailed due diligence review, a purchase agreement and a handover period. Deal structures vary. Some pay part of the price at close and part later, so read how and when you get paid. Before you commit, ask:
- How much is paid at close, and how much is deferred or conditional?
- What happens to your suppliers, listings, reviews and customers after the sale?
- What will due diligence need from you, and how long will it take?
- Are you asked to stay on, and for how long?
Aggregator, broker or direct buyer
Three different things get lumped together. This is how they differ for a founder deciding who to sell to.
| Aggregator | Business broker | Direct buyer (Cadence) | |
|---|---|---|---|
| What it is | A company that buys and operates several brands | An intermediary that markets your business to buyers | The buyer itself |
| Who you deal with | The aggregator's acquisitions team | The broker, then the buyer | The buyer, from the first email |
| Typical focus | Often Amazon FBA brands with a sales track record | Depends on the broker | Health and wellness brands, roughly $100K to $2.5M a year |
| Commission | Not charged by the buyer | Usually a percentage of the sale price, paid by the seller | None. No listing, no auction, no commission. |
| Process | Their own review and due diligence | Listing, buyer outreach, offers, due diligence | A short note, mutual NDA, the numbers, a written offer, close and handover |
None of these is right for everyone. If your business is outside our range, or you want several competing offers, a broker or an aggregator may suit you better. More on that in ecommerce business broker or direct buyer.
Where Cadence fits
Cadence is not an aggregator and not a broker. We buy small online health and wellness brands directly from the founders who built them, and you deal with the buyer from the first email. Shopify and other DTC stores, Amazon brands and multichannel brands are all in scope. If it isn't a fit, we'll tell you plainly.
Source: CNBC, "Top Amazon aggregator Thrasio files for bankruptcy", February 28, 2024.
Questions
Ecommerce aggregators: the short answers.
What is an ecommerce aggregator?
A company that buys small online brands, often Amazon FBA brands, and runs them together to share sourcing, logistics, advertising and finance.
Are ecommerce aggregators still buying?
Appetite varies by company. The market is smaller and more selective than during the 2020 to 2021 wave, and Thrasio, once among the largest, filed for Chapter 11 in February 2024 (CNBC). Ask each aggregator about its current criteria before you spend time on a process.
Is Cadence an ecommerce aggregator?
No. Cadence buys small online health and wellness brands directly from the founders who built them. There is no listing, no auction and no commission.
What should I ask an aggregator before selling?
How much is paid at close and how much later, what happens to your suppliers, listings and customers, and what they will need during due diligence.
Can I sell my online business to Cadence instead?
If it is a health or wellness brand with real repeat customers, yes. Email info@cadenceacq.com with your brand name, store URL and rough annual revenue.