E-commerce roll-ups and the rise of Thrasio biz model
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The rise of e-commerce roll-ups
In the past, roll-ups were mainly proceeded by private equity firms, large conglomerates, and institutional buyers whereby companies acquire businesses in the same market and merging them under a single entity to scale.
Today, there are new companies that consolidate independent private label brands with decent revenue. They are the aggregators of e-commerce brands. Unlike marketplaces that connect buyers and sellers to acquire or sell off their brands (e.g. Flippa and Exchange Marketplace by Shopify), roll-up platforms are operational and resourceful. They:
have a thesis around e-commerce product categories they want to acquire
search across marketplaces like Amazon and Shopify
find winners and merge these companies
operate like a private equity firm, may fund and invest in buyout businesses
platform-agnostic or vertical-focused
grow them collectively using built-in technology, infrastructure, data analytics, operational expertise, capital, and economies of scale
(📥 Full version) 3 more specific strategies on how aggregators operate and scale
Key players around the world
Shopify aggregator: OpenStore
Home living & consumer electronics roll-up: Berlin Brands Group
Asia-Pacific focused consolidator: Una Brands (raised US$40 million) targets acquisition on Tokopedia, Lazada, Shopee, and Rakuten using a platform-agnostic approach by focusing on Shopify, Magento, or WooCommerce.
(📥 Full version) 1 more company that focuses on the Amazon platform
(📥 Full version) 5 more companies from emerging market
What problems do they solve?
Not being able to find ideal buyers ➝ help sellers get acquired. Roll-up platforms help successful e-commerce merchants or direct-to-consumer (D2C) brands to exit their businesses lucratively.
(📥 Full version) 3 more valid problems they are solving that actually make these platforms super profitable. You’ll also learn:
how do roll-up platforms create values for their clients?
what are the user pain points in getting a business acquired?
how do they tackle complexities in selling off businesses?
Roll-up companies are running the business using a private-equity model. They act like collaborators, operators, and venture capitalists (VC) at the same time. For example:
Thrasio acquires third-party sellers on Amazon focusing on everyday consumer brands, scale the business, and offer exit options for the sellers. In 2020, Thrasio profits $100 million on $500 million in revenues.
Heyday provides tech stack, capital, advice, and insights to help consumer product brands accelerate the next level of growth.
(📥 Full version) 2 more specific ways to monetize as e-commerce aggregators. You’ll also learn:
different ways to partner with potential acquisition targets
different ways to expand your roll-up portfolio
As e-commerce entrepreneurship is exploding, there will be more successful independent merchants who will need to find a way to exit their brands. Here is the market potential snapshot:
Growing numbers of independent sellers. In 2020, more than 50% of Amazon's gross merchandise volume (GMV) was coming from third-party, independent sellers.
(📥 Full version) 3 more market evidence in detail to help you answer the “why now” questions for your investors or partners. You’ll also learn:
insight from Amazon financial statement
impact of D2C brands
insight from the emerging e-commerce markets and why there are untapped opportunities to monetize
(📥 Full version) 4 specific product ideas and business opportunities that are solving problems. You’ll unlock:
one specific product idea in SaaS
one vertical-focused roll-up platform idea
a solution to help aggregators find the next acquisition winner
specific business idea to participate in a roll-up partnership
What you’ll unlock:
🌟 how do roll-up platforms create values for their clients?
😭 what are the user pain points in getting a business acquired?
💦 how do they tackle complexities in selling off businesses?
🙌 different ways to partner with potential acquisition targets
💪 different ways to expand your roll-up portfolio
🧠 insight from Amazon financial statement
🚚 impact of D2C brands
🎁 insight from the emerging e-commerce markets and why there are untapped opportunities to monetize
💻 one specific product idea in SaaS
🥳 one vertical-focused roll-up platform idea
🎖 a solution to help aggregators find the next acquisition winner
👍 specific business idea to participate in a roll-up partnership
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