Brand aggregators are taking the eCommerce industry by storm. With Amazon brand aggregators raising more than $15 billion, and $6.388 trillion in eCommerce retail sales projected for 2024, its clear success lies ahead.
However, it takes time and effort to win the attention of a brand aggregator.
In this article, we’ll explore some scenarios where it makes sense to hand over the reins to your eCommerce store. We’ll also share what attracts brand aggregators and some ways to amplify your business value to achieve the asking price you deserve.
Table of contents
- 4 Undeniable signs it’s time to sell your eCommerce store
- 7 Characteristics brand aggregators look for in an eCommerce business
- How to enhance your brand’s perceived value to aggregators
- What it takes to sell to a brand aggregator
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4 Undeniable signs it’s time to sell your eCommerce store
Selling an eCommerce store can be an emotional experience that presents a challenging workload as well as financial commitments. However, there are some instances when parting ways with your store is the best option.
1. You have a strong business valuation
When your store numbers add up to a healthy figure or the market is on an upward trend, selling your eCommerce business can help you get ahead financially. You’re able to ask for the best-selling price and walk away knowing you acquired a fitting reward for your hard work and dedication.
2. The business needs more than you can offer
Perhaps your business demands expert-level marketing skills, but you’re a numbers person, or maybe you love design, but the strong growth needs an experienced CEO at the helm. Whatever the case, if your eCommerce business requires more than you can give and you’re unable to hire the right talent, it could be time to part ways.
3. You’re ready for a new challenge
If you’re bored, catching the Sunday blues every day, or have a nagging feeling you’ve accomplished your mission with the store, it may be best to move on. Speak with friends and family to process how you’ve been feeling about your business and seek help from a business coach to ensure it’s not a simple slump.
4. Your niche’s growth has taken a hit
When market growth declines or stagnates, shoppers have started to search for better options, which is a bad sign. If creative product launches, marketing, and sales strategies fail to help you overcome this dip, getting out while your store is still valuable is a wise move.
7 Characteristics brand aggregators look for in an eCommerce business
Selling to a brand aggregator is one of the hottest opportunities eCommerce brands can access right now, so expect a high barrier to entry. Aggregators analyze a wide variety of business elements before deciding to invest. Here are some of the top attributes to secure before approaching a brand aggregator:
- Strong profits — A solid ROI is critical to give investors confidence they’ll make a healthy return on any capital they put in. So, the higher your projected and achieved ROI, the more appealing your company is.
- High revenue — Large amounts of money coming in consistently signifies product-market fit and a developing brand. It also suggests your business has enough funds to reinvest into growth strategies while covering operational costs, making it appealing to brand aggregators.
- Growth potential — All aggregators are interested in brands with room to develop. Whether it’s untapped channels, product categories, or territories, emphasize this is only the start of your eCommerce business’s success to have brand aggregator inquiries flooding in.
- Reputable brand — The more recognizable and respectable your brand is, the more likely you’ll grab attention and close deals. Being known for something your target audience values like affordability, quality, or sustainability can pay huge dividends.
- Established products — Often, road-tested products a business has put time, energy, and cash into optimizing form its baseline income. So, the more products you can launch and maintain successfully, the more ground you’ll gain in your niche and the greater appeal you’ll have.
- Happy customers — Customers keep businesses alive, so their satisfaction should be your top priority. Showcasing the fantastic results, you’ve helped customers achieve through user-generated content also encourages other shoppers to take a chance on your business. A respectable following of loyal customers is a big mark in your favor.
- Efficiency — Your store should run like a well-oiled machine, from the front end to the back end. Brand aggregators are on the hunt for eCommerce companies that thrive on streamlined processes, optimized tech stacks, and cost-effective strategies.
How to enhance your brand’s perceived value to aggregators
You’ve built your eCommerce business to a healthy size, developed a strong following, know your brand has great value, and are ready to sell. Now, it’s time to show brand aggregators what makes your business so amazing.
Improve product quality and selection
Aggregators look for brands that can outdo their competitors in customer satisfaction and sales. A great way to accomplish this is to develop new products, improve overall quality, and expand your lines based on customer feedback, trends, and store data. For example, if you sell baby toiletries, you could expand into baby bottles and cleaning tools.
Prioritize income generation
Expanding your sales makes your eCommerce business highly attractive, so work to increase sales velocity and consistency by implementing a multi-faceted marketing plan. Launch regular offers that excite and intrigue even your most infrequent buyers while piquing the interest of new prospects and rewarding loyal consumers. Some marketing strategies to master include:
- Affiliate marketing
- Influencer marketing
- Social media marketing
- Email marketing
- Pay-per-click ads
- Pop-ups and events
Tip: If you lack the team, time, or skills to grasp each marketing strategy, don’t panic. Work with a reputable eCommerce marketing agency instead to achieve excellent results.
Implement strategies to boost average order value
It takes significant effort to close sales, so you should squeeze every dollar you can from them. Test and blend different strategies to increase your store’s average order value and reorder rate. A few order-accelerating sales strategies you can implement include:
- Buy one, get one offers
- Mix-and-match promotions
- Cross-sells and upsells
For example, consumable products like coffee and skincare work well in a subscription model. You can then increase the perceived value and conversions by combining the subscription model with various bundles and pricing tiers.
Build a solid brand
While your brand finds favor among your current clientele, you need to take it a step further. Make your brand recognizable and prominent globally.
Invest in branded packaging, banners, logos, and visuals across every sales channel to create a consistent look and feel your target audience will remember. For example, if you sell on Amazon, invest in global trademarks and programs like Brand Registry.
Streamline your fulfillment process
No matter how many products you sell or channels you use, fulfillment should always be seamless. Make it your mission to reduce complexity in your brand’s supply chain.
Depending on your store’s fulfillment setup, this could look like removing unnecessary steps in your process to increase speed or choosing carriers that provide great value for the money. This is where working with a reliable 3PL or 4PL is beneficial. The right fulfillment provider can help you:
- Take advantage of economies of scale for better savings
- Achieve optimal picking, prepping, packing, and shipping efficiency
- Reduce error rates
- Increase customer satisfaction
- Upgrade your post-purchase experience to diminish buyer’s remorse
- Make returns painless to improve brand memorability and return buyers
- And much more
Lower your operating costs
Finding the right balance between investing and saving is essential to keep your business afloat and growing. Make it a habit to review your expenses regularly and eliminate any services or tools that won’t compromise service quality once removed.
For instance, if you pay for five warehouse spaces near one another, see if you can consolidate them into two or three hubs in key areas. Also, look out for expenses that may go unnoticed but rack up bills fast, like:
- Unused tech
- Admin fees
- Agency staff costs
Increase cash availability
Liquidity allows you to take advantage of opportunities, recover more quickly from disaster, and stay agile — traits that are enticing to brand aggregators. Set standards and procedures to gain optimal cash levels, such as:
- Establishing a 6- to 12-month nest egg for essential expenses
- Building a rapport with manufacturers and suppliers to gain favorable payment terms
- Securing flexible credit lines specifically for eCommerce brands
What it takes to sell to a brand aggregator
Selling your store is a serious decision. But once you make your choice and follow it through, passing the baton to a brand aggregator is an excellent opportunity. You ensure your legacy will remain strong in capable hands while earning a handsome return.
With some administrative planning, financial pruning, and logistical optimization, you can transform your eCommerce business into a hot commodity for brand aggregators to snatch up.
Pick a business area to improve and take the journey step by step. Before long, you’ll have a top-notch eCommerce business that brand aggregators will be eager to buy.
Don’t let lackluster shipping processes dull your shine. Revamp your fulfillment to maintain polished logistics.