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PR Newswire
06-12-2021, 01:10 PM
There are talent management agencies for social influencers on FB. There are management firms helping you to rent out your properties on AirBNB. There will be people buying your businesses on Amazon.
Thrasio, Perch, and others are betting $9 billion that the consumer-goods conglomerate of the future will be built on Amazon
But Thrasio’s cofounders, Josh Silberstein and Carlos Cashman, have a plan. They started the company in 2018, after they got their hands on seller data through an Amazon software provider and quickly noticed a trend. As sellers approached $10 million in revenue, their profit margins would decrease and their sales would plateau.
“They’d say, ‘We don’t have the ability to manage supply chain, marketing and creative, and new products,'” Silberstein says.
Many small businesses face scaling challenges, but almost no one was focused on providing the Amazon-seller ecosystem with growth capital or exit options. Silberstein and Cashman, serial entrepreneurs, convinced investors to provide them with relatively cheap debt and began targeting sellers who had hit a ceiling.
Some aggregators will buy duds. Some will struggle to operate what they acquire. Some will lose share to price-competitive China-based brands, which comprise nearly half of the marketplace ecosystem. Caught in the heady rush of a chance to snag a piece of Amazon’s growth, aggregators may forget that they are embarking on a novel, untested strategy. (Even Thrasio, seemingly the aggregator to beat, has delayed a plan to go public via SPAC, following the abrupt departure of its CFO and “complications with its audits,” according to CNBC.)
https://www.fastcompany.com/90686788/thr...ggregators
Thrasio, Perch, and others are betting $9 billion that the consumer-goods conglomerate of the future will be built on Amazon
But Thrasio’s cofounders, Josh Silberstein and Carlos Cashman, have a plan. They started the company in 2018, after they got their hands on seller data through an Amazon software provider and quickly noticed a trend. As sellers approached $10 million in revenue, their profit margins would decrease and their sales would plateau.
“They’d say, ‘We don’t have the ability to manage supply chain, marketing and creative, and new products,'” Silberstein says.
Many small businesses face scaling challenges, but almost no one was focused on providing the Amazon-seller ecosystem with growth capital or exit options. Silberstein and Cashman, serial entrepreneurs, convinced investors to provide them with relatively cheap debt and began targeting sellers who had hit a ceiling.
Some aggregators will buy duds. Some will struggle to operate what they acquire. Some will lose share to price-competitive China-based brands, which comprise nearly half of the marketplace ecosystem. Caught in the heady rush of a chance to snag a piece of Amazon’s growth, aggregators may forget that they are embarking on a novel, untested strategy. (Even Thrasio, seemingly the aggregator to beat, has delayed a plan to go public via SPAC, following the abrupt departure of its CFO and “complications with its audits,” according to CNBC.)
https://www.fastcompany.com/90686788/thr...ggregators
