The Amazon marketplace is currently valued at $300B with potential to double in the next 5 years.

Amazon merchants make prime acquisition targets

Amazon’s marketplace has an estimated 5+ million sellers and here's 3 big reasons investors love them:

  • There is a strong relationship between Amazon and the customers and Amazon is likely to keep growing market share with them.
  • Warehousing and shipping is all handled by Amazon, which allows roll-ups to quickly cut costs and boost profits by consolidating supply lines.
  • Negotiating better deals with Amazon is possible with enough brands under a roll-up paving the way for better prices or personalized service.

Some companies now involved in Amazon roll-ups started as sellers and therefore understand what it takes to grow an Amazon marketplace brand along with being able to relate to their acquisition targets. 

Some other roll-ups focus on specific product categories but with others their strategy is different, for example, having a preference for businesses with patents.

The roll-up market is crowding fast

More competition and more bidders naturally lends itself to bigger deals which is great news for Amazon merchants, but for roll-ups differentiation will be key.

Watch as the  roll-up market gains steam - if this is your area of expertise, take note!