By Jon Elder, CEO at Black Label Advisor
A lot has changed in the Amazon Aggregator space since Covid, and sadly, there is a lot of bad information out there! I have the distinct privilege of holding regular calls with some of the top aggregators in the space and now I get to share with you what they are looking for! If you nail the following things, you will be lightyears ahead of other Amazon sellers.
1. 100% FBA is DOA now
Yes, you read that right. If you are 100% FBA by revenue, you just lost the entire market. Buyers are no longer interested in Amazon-only brands.
Not only does it present a massive risk to them but they don’t want to be the ones to build out secondary channels like Walmart and Shopify. The expectation is that you are selling on multiple platforms prior to an exit.
2. Very few home runs
Now, this may come across as counterintuitive, but it makes a lot of practical sense for an aggregator. If most of your revenue comes from one hero product, that has the inherent risk that aggregators are “allergic” to.
They want to see your revenue spread out evenly across a diverse product catalog. Think 25+ unique products with each sharing revenue percentage.
3. Intellectual Property is King!
For years, buyers of Amazon businesses didn’t really care about intellectual property protection like design patents but that has all changed.
This is especially true if you are selling unique designs that do well online. Aggregators want to buy an asset with protection. The threat of Chinese sellers copying you is very real and they understand the power of design patents now. If you don’t have any IP, expect aggregators to hit the pause button when looking at your brand.
About The Author
Meet Jon Elder, the founder of Black Label Advisor, Jon spent 5+ years building my own 7-figure Amazon business and ended up doing over $10M in sales and became the top 3,000 seller on Amazon. Then, in 2019, he had a multiple 7-figure exit and launched Black Label Advisor to help sellers at all levels thrive on Amazon.
Jon offers exclusive one-on-one consulting to help others achieve their Amazon business goals. Jon is personally involved in every aspect of the business, working with a limited number of brands to ensure his clients' success.