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

  • Amazon-focused aggregators: Thrasio (made $100 million in profits, acquired more than 100+ brands), Heyday, Perch, and Branded

  • 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

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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?

Business models

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

Why now?

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

Business opportunities

  • (📥 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

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Get the “Pro Member” version of the report:

  • 🔺 3 more specific strategies on how aggregators operate and scale

  • 📝 6 more new market players

  • 🧐 3 more valid problems they are solving that actually make these platforms super profitable

  • 🖍 3 more market evidence in detail to help you answer the “why now” questions for your investors

  • 🚀 4 specific product ideas and business opportunities that are solving problems

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

Become a Pro Member


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