The term refers to a company that acquires smaller, successful businesses that operate on Amazon’s marketplace. These entities consolidate multiple brands under a single organizational umbrella, aiming to achieve economies of scale and operational efficiencies. For example, an investment firm might purchase several independent sellers specializing in home goods to form a larger, more diversified enterprise.
The increasing prevalence of these consolidators reflects a growing maturity in the e-commerce landscape. Their activities provide exit opportunities for entrepreneurs who have built profitable Amazon businesses, while simultaneously enabling the expansion and optimization of established brands through centralized management, enhanced marketing strategies, and improved supply chain logistics. This business model has attracted significant investment due to the potential for amplified revenue and profitability.
