PrivCo Logo

How Amazon has changed e-commerce

How Amazon has changed e-commerce
March 11, 2021

The Daily Stack is a daily private market insights newsletter by PrivCo, a private company intelligence platform. Read our previous insights.
If you have friends who would enjoy reading this newsletter, please forward this email to them.

The rise of Amazon has completely changed the game for e-commerce, and the pandemic has only driven Amazon's success further. Now, investments are being poured into companies that are aggregating brands that are doing well on the e-commerce giant. In fact, Amazon third-party sellers sold over 55% of the goods on Amazon in the last quarter of 2020, making the business of helping these sellers scale more lucrative than ever. 

How it works 
Amazon seller acquisition companies or marketplace aggregators find opportunities with successful third-party brands selling on Amazon and buy their Amazon account, inventory, and intellectual property. Some companies will offer a revenue share model or a complete buy-out. The acquiring company will then leverage in-house experience in logistics, marketing, and other areas to turn already successful Amazon hits into revenue generators rumored to reach up to 4X the pre-sale revenue profile of a particular brand. 

The players and the money
This business model isn’t actually a new one. Empire Flippers were founded in 2011 and have been turning around businesses since. But the buzz with newcomers like Thrasio, which has already reached unicorn status, can be tied to the pandemic and backing by deep-pocketed VCs and corporations. Thrasio's latest funding in February was a whopping $750MM, and other smaller startups are getting similarly attractive funding, including:
💰 Branded, which started operations in 2020, just raised $150MM in February led by Target. 💰 Boosted Commerce, also founded in 2020, raised its first round of equity in September 2020 from multiple angel investors as well as VCs. 
💰 Unybrands, another 2020 company, raised its first seed funding in February. 
💰 Perch was founded in 2019 and has had three rounds of funding, with its last one in October at over $120MM. 
💰 Win Brands Group was founded in 2017 and raised its latest round of $50MM of funding in February.

Crafting craze gets real with IPOs
Crafting brands Jo-Ann Stores and Cricut have both filed for IPOa. Meanwhile, Michaels went private after acquisition.
[Read More]
Investing in Underinvested
Goldman Sachs looks at the racial wealth gap in a Black Womenomics research study with plenty of interesting finds. It's a must-read during Women's History Month.
[Read More]
Since last week, PrivCo has added:
582 Companies | 210 Funding Activities | 138 M&A Deals

Funding & Deal Highlights:

Stodge raises $35MM led by Greylock Partners
Digital Marketing Software & Internet Services • Round B • San Francisco, CA

Aero raises $20MM
Travel Software & Internet Services • Round A • Charlottesville, VA

TytoCare raises $50MM
Health Care Equipment • Equity• New York, NY

Eco raises $26MM led by Andreessen Horowitz
Fintech Software & Internet Services • Equity • San Francisco, CA

Janux Therapeutics raises $56MM led by Avalon Ventures
Biotechnology • Round A • La Jolla, CA

BlossomHill Therapeutics raises $71MM from multiple investors
Biotechnology • Round A • San Diego, CA

Refraction AI raises $4.2MM led by Pillar VC
Robotics Software & Internet Services • Seed • Ann Arbor, MI

Neeva raises $40MM co-led by Sequoia Capital and Greylock Partners
Search Software & Internet Services • Seed • Mountain View, CA

Dream Games raises $50MM
Video Games Software & Internet Services • Equity • Istanbul, Turkey

Wind Point Partners acquires Food Science Corporation
Consumer Products • Acquisition • Essex Junction, VT

Novaria Group acquires The Young Engineers
Industrial Products • Acquisition • Lake Forest, CA

Dropbox acquires Docsend for $165MM
Content Management Software & Internet Services • Acquisition • San Francisco, CA

Takeda acquires Maverick Therapeutics
Biotechnology • Acquisition • Brisbane, CA

Motion Acquisition acquires DocGo for $1.1BN
Health Care Services • Acquisition • New York, NY

Forward to a Friend Forward to a Friend
Not a subscriber yet? Sign up here!
Have an interesting topic you want us to include. Let us know!
Copyright © 2021 PrivCo Media, LLC. All Rights Reserved.
Unsubscribe | | Contact Us
PrivCo Logo

© 2024 PrivCo Media, LLC


HomeSign inContactPricing