The Strategist

Investors spend $1B in total to buy small Amazon traders


12/23/2020 - 04:26



According to the Financial Times (FT), seven European and US start-ups have raised a total of $950m since the start of the year to buy small companies trading on Amazon.



Tedder
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According to analysts, sales of independent merchants on Amazon will amount to more than $200bn this year, with thousands of such sellers generating more than $1m a year in revenue. 

This situation is attracting investors who hope to merge independent merchants and create major players trading on the site.

According to the FT, rather than creating new brands on Amazon, investors want to buy up dozens of existing independent brands that have proven success on the site and consolidate them into multi-brand merchants. 

"We want to be something like a digital Procter & Gamble," Co-founder of one of the startups, SellerX, which invests in independent merchants, told the FT, "It is a huge market with 2 million merchants, it is very fragmented, and there is great potential for synergies".

source: ft.com




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