The time period refers to an organization that acquires smaller, profitable companies that function on Amazon’s market. These entities consolidate a number of manufacturers beneath a single organizational umbrella, aiming to realize economies of scale and operational efficiencies. For instance, an funding agency would possibly buy a number of impartial sellers specializing in dwelling items to kind a bigger, extra diversified enterprise.
The rising prevalence of those consolidators displays a rising maturity within the e-commerce panorama. Their actions present exit alternatives for entrepreneurs who’ve constructed worthwhile Amazon companies, whereas concurrently enabling the enlargement and optimization of established manufacturers by way of centralized administration, enhanced advertising methods, and improved provide chain logistics. This enterprise mannequin has attracted vital funding as a result of potential for amplified income and profitability.
