🤝 Aggregators Merge

Hey there 👋,

Welcome back to another issue of Inversal, which features honest, real-life stories on actual e-commerce turnarounds, plus market trends, strategies, and insights.

In today’s issue:

• Heyday & Branded merge

• Quick hits

• Mobile overtakes desktops

• Amazon FBA Pitfalls

• X post of the week

🚀 Amazon Aggregators Shrink: Branded and Heyday to Merge

Amid a consolidating market for Amazon aggregators, two of the biggest players, Branded and Heyday, are planning to merge. The aggregator space, which once saw a surge in companies buying and scaling Amazon brands, is now undergoing significant contractions. Both companies, which together manage dozens of brands, are seeking to combine their operations in a bid to stay competitive as the industry faces tougher market conditions and profitability challenges.

The deal signals a critical shift in the aggregator industry, which has struggled with high acquisition costs, inventory management issues, and a slowdown in e-commerce growth post-pandemic. With fewer acquisitions and rising pressure to optimize operations, Branded and Heyday hope their merger will create a more resilient entity capable of better navigating the shrinking landscape.

• 📉 Industry Contraction: The number of active Amazon aggregators has dramatically decreased, with many smaller players exiting the market or consolidating with larger entities.

• 🤝 Strategic Merger: Branded and Heyday's merger reflects a broader trend of consolidation, driven by the need to achieve scale and reduce operational costs.

• 💰 Funding Crunch: The once-easy flow of venture capital into the aggregator space has dried up, with investors now more cautious about the sector's long-term viability.

• 📦 Operational Challenges: Both companies have faced difficulties in efficiently managing the brands they acquired, highlighting the complexities of scaling multiple Amazon businesses under one roof.

• 🚀 Future Outlook: The merger could set the stage for more strategic consolidations in the industry as remaining players seek to build sustainable business models in a tougher market environment.

This merger underscores the evolving dynamics in the e-commerce landscape, where the once-booming aggregator model is now grappling with the realities of a more competitive and less forgiving market. The success of this merger could determine the future trajectory of the entire aggregator sector.

Link to Article →

⏩ Quick Hits

• Amazon is simplifying European expansion for sellers by automatically enrolling more ASINs in Pan-European Fulfillment by Amazon (Link)

• A group of Amazon sellers have filed a formal complaint against Amazon for seizing funds from around 2,300 sellers, accusing the company of routinely suspending small business accounts without explanation (Link)

• 30 secrets from flipping 3 unprofitable 9-fig eCom brands (Link)

📱 Mobile Devices Overtake Desktops in Online Shopping

The way consumers shop online is shifting dramatically, with mobile devices now surpassing desktops as the primary shopping method, according to Adobe's latest report. The data reveals that a growing number of consumers prefer the convenience of mobile shopping, leading to significant implications for retailers and marketers. Key drivers of this trend include improvements in mobile payment technologies and user experience, which are making mobile shopping faster and more seamless than ever.

• 📈 Mobile Dominance: Mobile devices account for more online purchases than desktops.

• 🛒 User Experience: Enhanced mobile UX and payment systems are key growth drivers.

• 🌍 Global Impact: This trend is consistent across various global markets, not just in the U.S.

Retailers need to prioritize mobile-first strategies to stay competitive in the evolving e-commerce landscape.

Link to Article →

🚨 Avoid These Amazon FBA Pitfalls

Many Amazon FBA sellers fall into common traps that can derail their success. Critical missteps include neglecting cash flow management, underestimating competition, and mishandling product research.

Sellers often launch products without fully understanding market demands, leading to overstock and financial strain. Additionally, poor inventory management can result in lost sales due to stockouts or wasted money on excess inventory.

• 🧮 Cash Flow Crunch: Many sellers overlook cash flow, leading to unexpected shortages.

• 📊 Competitive Blindness: Failing to analyze competitors often results in underperforming products.

• 🔍 Research Gaps: Insufficient product research can cause misaligned inventory with market needs.

Mastering these aspects can significantly boost profitability and sustainability for Amazon sellers.

Link to Article →

🐦 Post of the Week

That’s it for this week.

If you have any questions or would like to know more about how Inversal can help you, just hit reply or send us a message.

Thanks!

Marc Roca
Founder & CEO
Inversal
X | Linkedin

Marc has founded, acquired, and operated more than 30+ e-commerce brands since 2017. He is also the founder of the third-ever Amazon Aggregator.