e-Commerce aggregators: The new kid on the block you should pay attention to
eCommerce Aggregators allow small businesses to quickly sell their products online by aggregating them into one place.
This means that instead of building and maintaining your website, you can use an aggregator to list your products on their platform and reach a larger audience.
These eCommerce Aggregators typically offer services such as payment processing, order fulfillment, and customer service,
making it easier for small businesses to focus on creating and marketing their products.
Some popular eCommerce Aggregators include Amazon, eBay, Etsy, and Shopify.
Each platform has unique features and benefits, so it’s essential to research and choose the one that best fits your needs.
For example, Amazon is a well-known platform with a large customer base, but it can be competitive and may charge higher fees than other aggregators. On the other hand, Etsy is an excellent option for small businesses selling handmade or unique products.
At the same time, Shopify is a popular choice for companies that want more control over the design and functionality of their online store.
If you’re a small business owner looking to launch an online brand and promote your store to customers worldwide, consider using an eCommerce Aggregator to get started.
These platforms can save you time and money by handling the technical aspects of selling online, so you can focus on creating and promoting your products. And with the right strategy and marketing efforts, you can use an eCommerce Aggregator to take your business to the next level.
To learn more about eCommerce Aggregators and how they can help your business, read this blog post or reach out to our customer support team at Payoneer. We’re here to help you succeed in eCommerce with our full suite of payment solutions for sellers.
Definition of an eCommerce aggregator
An eCommerce Aggregator is a platform that brings together resources and products from various brands and sellers in one place (across the same verticals).
This makes it easier for consumers to compare and shop for different products.
There are two main types of eCommerce Aggregators:
- Rollup companies: These aggregators purchase successful eCommerce brands that sell on platforms like Shopify and Amazon.
By acquiring multiple brands in the same industry and pooling resources, rollup companies can create economies of scale, reduce overhead, optimize business operations, and increase revenues (ROI). - Comparison shopping platforms: These aggregators build a website or app that collects offers from different brands, allowing consumers to compare and choose the best option easily. These platforms can help consumers make informed decisions and give brands increased exposure for their products & services.
eCommerce Aggregators can benefit consumers and brands by making shopping more convenient and efficient and increasing brand visibility.
If you’re a small business owner – online seller or dropshipper – consider using an eCommerce Aggregator to reach a larger audience and streamline your sales process.
The Aggregator business model explained
The aggregator business model is centered around achieving economies of scale. eCommerce Aggregators that acquire brands can use their size and pooled resources to invest in areas that individual brands may not have access to, such as optimizing performance on marketplaces like Shopify & Amazon. They can also develop in-house expertise and pool resources to increase profitability and reach.
One advantage of the aggregator business model is the ability to perform well in search engines. Due to their high traffic volume, aggregators often have an inherent advantage in search results. This can help them reach a larger audience and drive profits. Overall, the aggregator business model is designed to make the combined profits of multiple brands bigger than they would be individually.
As competition in the e-commerce space becomes more intense, the advantage of being an aggregator becomes increasingly essential, leading to a sharp rise in the popularity of these types of platforms in recent years. With eCommerce Aggregators, the whole truly is greater than the sum of its parts!
The dominant eCommerce aggregators – the sellers’ watchlist
eCommerce Aggregators are platforms that bring together products from various brands and sellers in one place. Here are some of the leading aggregators in the industry:
- Win Brands Group: This aggregator is a direct-to-consumer brand scale platform that uses best-in-class tech partners to create & scale innovative brands.
It acquires customer-focused companies with an established track record and then utilizes its shared-services platform to upscale these companies to the next level.
This omnichannel platform specializes in acquiring and building category-defining brands.
The company starts by identifying customer-focused companies with a solid and demonstrable track record. It then uses its Shared Services platform, which includes a team of industry-leading experts, to take these companies to the next level. In this way, Win Brands Group helps businesses grow and expand their reach in the retail market.
- Thrasio: Valued at approximately $10 billion (give or take), Thrasio is a global eCommerce Aggregator focusing on several verticals, including home, cleaning, kids activities, outdoor, culinary, and fitness. The company owns popular brands such as Brush Hero, Wise Owl Outfitters, Mixology, Bikeroo, and Turbo Mops.
With the completion of a $1 billion funding round, Thrasio plans to expand further by acquiring more companies.
In addition to its focus on various verticals, Thrasio is known for using data and technology to optimize operations and drive growth.
The company has a strong track record of successful acquisitions and is expanding rapidly.
- Growve: This aggregator focuses on brands in beauty, personal care, active lifestyles, dietary supplements, health & lifestyle foods, home & leisure, pet care, and nutrition.
It has acquired and operates over 25 world-class brands and has a team of 500+ with expertise across the board.
Growve features experts in creative services, digital marketing, marketplace & supply chain management, distribution, accounting, manufacturing, and regulatory services.
The company is committed to helping its brands succeed and has a strong track record of growth and success.
- Perch: This aggregator is geared towards lifestyle products, including apparel, home & kitchen, toys, and beauty.
This aggregator’s portfolio includes popular brands such as Azmed, Satina, Homestead, and Hot Pop.
Perch assists the brands it acquires with product innovation, geographic expansion & channel expansion, supply chain efficiency, and marketing-related functions.
Perch is a relatively new entrant to the eCommerce Aggregator space. Still, it has already made a name for itself with its focus on lifestyle products and its commitment to helping brands grow through innovation and expansion.
- Unybrands: This company is a serial acquirer of Amazon FBA, e-Commerce, and direct-to-consumer brands.
These operations use technology & data to scale brands globally on the Unybrands multichannel platform.
The company works alongside multiple partners and focuses on strategic growth and sustainable operations. - Heyday: This aggregator buys and grows direct-to-consumer merchants and brands that have demonstrated traction.
Heyday raised $555 million to invest in technology expansion, business development, and additional assets.
Heyday is geared toward Asian markets and makes sizable investments in data science, supply chain, marketing & advertising activities.
Heyday is a groundbreaking brand creation platform that works with entrepreneurs to build the next generation of consumer products companies through a digital-first approach.
The company is focused on helping eCommerce sellers, and dropshippers bring innovative products to market and achieve success in the e-commerce space. By leveraging its expertise and resources, Heyday helps entrepreneurs turn their ideas into thriving businesses.
- Elevate Brands: This aggregator specializes in acquiring consumer-leading Amazon brands and helping them reach their full potential. Elevate Brands works to make the process as smooth as possible for e-Commerce sellers, and its portfolio includes brands such as Active Chews, Essential Value, and Will’s Wine.
Elevate Brands is known for its expertise in helping brands achieve success on Amazon and other marketplaces. The company has a comprehensive brand growth approach, including product development, marketing, and customer service.
Summary: How to Benefit from eCommerce Aggregators
eCommerce Aggregators are new trends shaping the e-Commerce arena.
They are platforms that combine products from various brands and sellers in one place, making it easier for consumers to shop and compare different products.
They offer a range of services to help small businesses focus on creating and marketing their products, including:
- Payment processing
- Order fulfillment
- Customer service
Aggregators can benefit consumers and brands by making shopping more convenient and efficient and increasing brand visibility.
If you’re a small business owner looking to sell online, consider using an eCommerce Aggregator to reach a larger audience and streamline your sales process. These are the ideal tools and resources to reach new markets, establish trust and credibility, and boost ROI.
Payoneer is a trusted & established payment solution for sellers that can help you manage all your business payments, including:
- Multi-currency receiving accounts
- Capital Advance to invest in your business
- Paying suppliers or VAT requirements
Open an account to see how easy and cost-effective it can be to manage your business payments.
FAQs
- What are eCommerce Aggregators?
eCommerce Aggregators are platforms that combine resources and products from various brands and sellers in one place, making it easier for consumers to compare and shop for different products.
There are two main types of eCommerce Aggregators: rollup companies and comparison shopping platforms.
Rollup companies purchase successful e-commerce brands and pool resources to create economies of scale and increase profits, while comparison shopping platforms build websites or apps that collect offers from different brands and allow consumers to compare options easily.
- What services do eCommerce Aggregators offer?
eCommerce Aggregators typically offer a range of services to small businesses, such as payment processing, order fulfillment, and customer service. These services help small businesses focus on creating and marketing their products rather than worrying about the technical aspects of selling online.
- What are some popular eCommerce Aggregators?
Some popular eCommerce Aggregators include Amazon, eBay, Etsy, and Shopify. Each platform has its unique features and benefits, so it’s essential to research and choose the one that best fits your needs.
- How can eCommerce Aggregators benefit small businesses?
eCommerce Aggregators can benefit small businesses by making it easier to sell online and reach a larger audience. They handle the technical aspects of selling online, such as payment processing and order fulfillment, and can also offer additional services, such as customer support. This can save small businesses time and money, allowing them to focus on creating and promoting their products.
- How can Payoneer help small businesses succeed in e-Commerce?
Payoneer is a payment solution for sellers that can help small businesses manage their payments, including multi-currency receiving accounts, Capital Advance to invest in their business and paying suppliers or VAT requirements.
Payoneer’s complete solution comprises a suite of powerful resources to manage your eCommerce store. As a result, we make it easier for small business operators, sellers, and dropshippers, to take care of their payments and succeed in eCommerce.
With our comprehensive suite of tools & resources, aligned with the power of eCommerce Aggregators, you can promote & grow your brand.