The Aggregator Gold Rush
Between 2020 and 2022, billions of dollars flooded into companies buying Amazon FBA brands. Thrasio, Perch, Heyday, and dozens of others raised enormous venture capital funds. The thesis was simple: buy successful small businesses, apply professional management, and create value through consolidation. For sellers, this created an unprecedented exit market.
What Went Wrong
Many aggregators discovered that running acquired Amazon businesses was harder than buying them. Integration challenges, rising Amazon fees, and difficulty maintaining growth post-acquisition eroded returns. Several major aggregators faced financial difficulties. The easy money era ended.
The Impact on Valuations
During the peak, some businesses sold for 50x to 60x monthly profit — well above historical norms. As aggregator demand decreased, multiples returned to more sustainable levels of 24x to 40x. This normalisation reflects a healthier market where valuations are based on genuine fundamentals.
Aggregators That Survived
Not all aggregators failed. Those that were selective in acquisitions and had sustainable funding continue operating. The surviving aggregators represent a more mature version of the original concept.
What This Means for Independent Sellers
The aggregator wave proved that Amazon FBA businesses have real, transferable value. Even with reduced aggregator activity, the exit market remains active through traditional brokers and individual buyers. Independent sellers who build strong businesses still have viable exit options.
Lessons for Business Building
The aggregator era reinforced what makes businesses valuable: diversified products, strong brands, sustainable margins, documented operations, and consistent growth. Building for long-term value has always been the better strategy.
The Future of Amazon Business Sales
The exit market is maturing. Professional buyers, private equity firms, strategic acquirers, and experienced entrepreneurs increasingly participate alongside remaining aggregators. This diversified buyer pool creates a healthier market. Sellers who build genuinely strong businesses will always find buyers.