Amazon's brand acquisitions continue, and two more companies have received financing!

Heros from the UK recently received $200 million in financing . Heros said it will use the funds to acquire more brands. Heros was founded in November 2020 and is the first Amazon brand acquisition company in the UK . When the company was first established, it received $65 million in financing . Currently , the company prefers to acquire categories such as babies, pets, sports, personal health , household, and gardening .

As for the other company, it is Powerhouse91 from India . The company has not yet announced how much money it has raised. It is worth mentioning that this is Powerhouse91's third round of financing this year. According to ET Online , Powerhouse91 has acquired and started operating three different categories - personal care, sports and fitness, and general health. Powerhouse91 said that it will develop into home kitchens, gardening and outdoor areas in the future.

The founders or teams of acquisition companies such as Heros and Powerhouse91 generally have deep retail experience. They maximize profits by integrating small and medium-sized retail brands together and leveraging resources and expertise in marketing, inventory management and technology.

For small and medium-sized sellers, inventory and supply chain issues are like a sword of Damocles hanging over their heads. Once interrupted, they will be destroyed. In addition, many sellers believe that Amazon's policies and practices are "capricious." This has doubled their sales pressure. Many sellers have chosen to join acquisition companies.

However, not all brands and stores are in the eyes of the acquisition company.

According to the Heros official website, the acquired brands need to meet four conditions. First, 90% of the store's products are delivered through Amazon FBA. This is because they take various logistics factors into consideration. One of the reasons is that FBA sellers are more likely to qualify for Prime sales. The second condition is that these products have a large number of good reviews and rank high in natural searches for relevant keywords. In addition, the brand's focus area cannot be too biased, and it is best to be a market with growing search volume and stable prices. The last condition is about revenue. The store must have made at least $200,000 in profit in the past year.

Although the brand acquisition standards of different companies may vary to a greater or lesser extent, it is certain that they all favor products that are of good quality, promising, and delivered through FBA.

Amazon Brand Acquisition

Financing