--- title: Amazon aggregators are losing steam - The Hustle description: After becoming one of the hottest sectors for VCs in 2021, funding for Amazon aggregators is way down. image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/741422462-HS-News-Brief_2022-09-27T000526.614Z.webp --- # Amazon aggregators are losing steam ![Rob Litterst](https://thehustle.co/wp-content/uploads/2023/01/Rob-Litterst-pic.png?width=48&height=48&name=Rob-Litterst-pic.png) [Rob Litterst](https://hs-sbup.thehustle.co/author/rob-litterst) [Rob Litterst Twitter profile ](https://twitter.com/robbylit) Published: September 27, 2022 Updated: October 11, 2023 Ecommerce sales blew up in 2020. Unsurprisingly, Amazon [benefitted](https://www.nytimes.com/2021/04/29/technology/amazons-profits-triple.html) from the trend. ![Amazon aggregators are losing steam](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/741422462-HS-News-Brief_2022-09-27T000526.614Z.webp?width=595&height=400&name=741422462-HS-News-Brief_2022-09-27T000526.614Z.webp) With increased shopping on the platform, a popular new startup sector [emerged](https://thehustle.co/%f0%9f%a4%9d-amazon-roll-ups-explained/): Amazon aggregators (AKA “roll-ups”). #### **Amazon aggregators…** … buy and consolidate brands that sell on Amazon. Housing the brands under one company creates supply-line efficiencies and allows them to negotiate better deals with Amazon. The 2020 ecommerce boom led to a *very* frothy funding market for the sector: - **Thrasio,** perhaps the best-known Amazon aggregator, raised ~$3.4B and acquired 200+ brands. - **Perch,** another aggregator, raised nearly $1B and acquired 80+ brands. Overall, the sector [raised](https://www.ft.com/content/fc30da6b-7d86-45b2-bf91-ae1193b5def4) $12B+ in 2021, per *Financial Times*. #### **But 2022 has been a different story** Funding for the sector has been stuck since the market took a turn for the worse in March, leading some aggregators to focus less on acquisitions and more on growing existing brands. - One analyst called 2022 “the year of survival” for aggregators, which could mean consolidation is coming. If that’s the case, it’s only a matter of time before some aggregators get aggregated. 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