What is an Amazon Brand Aggregator and Why do They Prefer FBA Brands?
Amazon aggregators have become increasingly popular in recent years, and for good reason. They provide a valuable service to Amazon sellers by acquiring and consolidating brands on the platform. But what exactly is an Amazon brand aggregator, and why do they prefer FBA brands over other types of online brands?
What is an Amazon Brand Aggregator?
An Amazon brand aggregator is a company that acquires and consolidates brands that are sold on Amazon. They typically look for successful brands with a proven track record of sales, positive customer reviews, and high-quality products. Once they acquire a brand, they use their expertise and resources to optimize the brand’s performance on Amazon, which can result in increased sales and profitability.
Why do Amazon Aggregators Prefer FBA Brands?
Fulfillment by Amazon (FBA) is a program that Amazon offers to sellers, which allows them to store their inventory in Amazon’s fulfillment centers. Amazon then takes care of the shipping, customer service, and returns for those products. This makes selling on Amazon much easier and more efficient for sellers, and it also provides several benefits for Amazon brand aggregators.
One of the main reasons why Amazon aggregators prefer FBA brands is that they have a higher chance of success on the platform. FBA brands typically have faster shipping times, which is a major factor in Amazon’s search algorithm. They also have access to Amazon’s Prime program, which provides free two-day shipping to Prime members. This can result in higher conversion rates and more sales for the brand.
In addition, FBA brands often have higher product margins than other types of online brands. This is because Amazon takes care of many of the costs associated with selling on the platform, such as shipping and customer service. This means that FBA brands can focus more on product development and marketing, which can result in higher-quality products and better customer experiences.
Characteristics of an Appealing Amazon Brand
So what characteristics should an Amazon brand have to be appealing to Amazon aggregators? Firstly, it should have a proven track record of sales and positive customer reviews. This demonstrates that the brand has a loyal customer base and a strong reputation on Amazon.
Secondly, the brand should have high-quality products that are in demand on Amazon. This means that the products should be unique, innovative, and solve a specific customer need. Brands that have a clear value proposition and a strong brand identity are more likely to be successful on Amazon.
Finally, the brand should have a strong online presence outside of Amazon. This means that they should have an active social media presence, a well-designed website, and a clear brand message. Brands that have a strong online presence are more likely to attract new customers and build a loyal following.
In conclusion, Amazon brand aggregators provide a valuable service to Amazon sellers by acquiring and consolidating brands on the platform. They prefer FBA brands over other types of online brands because they have a higher chance of success on the platform and often have higher product margins. An appealing Amazon brand should have a proven track record of sales and positive customer reviews, high-quality products that are in demand on Amazon, and a strong online presence outside of Amazon.
To learn more about how to create a successful Amazon brand, check out our blog on Amazon Branding Strategy.
Flummox is a brand acceleration house specialized in acquiring locally proven Amazon-native brands and expanding their reach by opening distribution across Europe on Amazon and other online marketplaces. Reach out if you’re interested in learning more!
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