👋 I’m , a product builder. I’ve built multiple apps using the method: , , , , , , +more Zoe Chew rapid MVP sneaker app personal FAQ meal kit app virtual event app SaaS tracker food delivery content app At , I’m on a quest to understand the . I analyze profitable industries & biggest players, and how you can compete and monetize—at the intersection of Internet platforms & consumer tech. Venturescale future of the Internet Today’s post is about . Read here if you’re interested in the , , , or e-commerce acquisition platforms Web3 creators economy future of social networks FinTech & wellness tech B2C online marketplaces . 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 in the same market and merging them under a single entity to scale. acquire businesses Today, there are new companies that consolidate independent private label brands with decent revenue. They are the . Unlike marketplaces that connect buyers and sellers to acquire or sell off their brands (e.g., and by Shopify), roll-up platforms are operational and resourceful. They: aggregators of e-commerce brands Flippa Exchange Marketplace 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 3 more specific strategies on how aggregators operate and scale (📥 Full version) Key Players Around the World (made in profits, acquired more than 100+ brands), , , and Amazon-focused aggregators: Thrasio $100 million Heyday Perch Branded Shopify aggregator: OpenStore Home living & consumer electronics roll-up: Berlin Brands Group (raised ) targets acquisition on Tokopedia, Lazada, Shopee, and Rakuten using a approach by focusing on Shopify, Magento, or WooCommerce. Asia-Pacific focused consolidator: Una Brands US$40 million platform-agnostic 1 more company that focuses on the Amazon platform (📥 Full version) 5 more companies from emerging market (📥 Full version) What Problems Do They Solve? Roll-up platforms help successful e-commerce merchants or direct-to-consumer (D2C) brands to exit their businesses lucratively. Not being able to find ideal buyers ➝ help sellers get acquired. 3 more valid problems they are solving that actually make these platforms super profitable. You’ll also learn: (📥 Full version) 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: acquires third-party sellers on Amazon, focusing on everyday consumer brands, scale the business, and offer exit options for the sellers. In 2020, Thrasio recorded a profit of on $500 million in revenues. Thrasio $100 million provides tech stack, capital, advice, and insights to help consumer product brands accelerate the next level of growth. Heyday 2 more specific ways to monetize as e-commerce aggregators. You’ll also learn: (📥 Full version) 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: In 2020, more than of Amazon’s gross merchandise volume (GMV) was coming from third-party, independent sellers. Growing numbers of independent sellers. 50% 3 more market evidence in detail to help you answer the “why now” questions for your investors or partners. You’ll also learn: (📥 Full version) 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 4 specific product ideas and business opportunities that are solving problems. You’ll unlock: (📥 Full version) 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 Want more? Consider the members-only version: 🔺 3 more on how aggregators operate and scale specific strategies 📝 6 more new market players 🧐 3 more they are solving that actually make these platforms super- profitable valid problems 🖍 3 more in detail to help you answer the “why now” questions (most important slide in a pitch deck!) for your investors market evidence 🚀 4 and business opportunities that are solving problems specific product ideas [1] Find me on Personal Site / Twitter / LinkedIn 🔥 [2] Weekly market insights in your inbox — Click here to join my newsletter 💌 👉 Get the full report here This article is part of my ↗️ where I share insights on building things in tech. Join me :) Note: resource newsletters Also Published At: https://whizzoe.substack.com/p/e-commerce-roll-ups-and-the-rise
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