Mark Osborne explains why aggregators buying 100 FBA businesses looked profitable on paper but failed in practice. Smaller portfolios run by experienced e-commerce teams that share knowledge across a few brands outperform massive rollups, which struggle with shipping costs, tariffs, and operational complexity.
I mean, a lot of these were pretty big businesses that the aggregators were buying. I mean, they raised billions, some of them. I think it's more that when you, you know, let's take 100 FBA businesses, like the spreadsheet math on rolling those up and, you know, what the bigger the company is worth and all of that stuff and the economies of scale, like that all looks great. But I think the realities of like running 100 Amazon FBA businesses are different. And of course, like You know, that business model was also impacted by like some external stuff, you know, like the shipping, you know, and tariffs and all that kind of stuff. But yeah, I think it's a team who really understands e-commerce businesses or a certain type of monetization can do really well having a few different businesses that they cross-pollinate and not have like the complexity of, like I say, 100 FBA businesses, basically. Right.
How Can You Maximize Your Business Value Before Selling? with Randy Katz Video
