The Aggregator Bubble: Why I Walked Away From Millions and Never Looked Back
I Turned Down Big Money in 2021. Now Thrasio’s Collapse Proves I Was Right.
In late 2021, I made the bold decision to turn down a massive funding offer to become an Amazon aggregator. At the time, people thought I’d lost my mind. Fast forward to today, with Thrasio’s struggles splashed across headlines, that decision now looks like one of the smartest moves I’ve ever made.
For those who aren’t familiar, Thrasio was the poster child for the Amazon aggregator model. They raised billions of dollars, bought up successful Amazon brands, and promised to turn them into unstoppable juggernauts.
At its peak, Thrasio was valued at $10 billion. But things unraveled fast: massive layoffs, a CEO shakeup, and now, rumors of bankruptcy protection for some of their assets.
What went wrong?
It boils down to a fundamental misunderstanding of how Amazon works.
The aggregator playbook seemed simple: buy profitable Amazon brands, consolidate operations, pump in capital, and scale fast. But that’s not how sustainable growth works on Amazon.
After 17 years in ecommerce, I’ve learned that success on Amazon is about more than throwing money at advertising or snapping up as many brands as you can. It’s about mastering the platform’s unique dynamics.
Here’s the truth that aggregators ignored
Sustainable growth on Amazon is built on understanding the delicate balance between paid and organic visibility, knowing what drives customer behavior, and staying focused on long-term brand building.
What many aggregators did was take thriving brands and, in their rush to scale, strip them of the very foundations that made them successful.
They prioritized short-term growth metrics over the customer loyalty and trust that took years to build.
Thrasio’s downfall isn’t just about rising interest rates or tough market conditions.
It’s a cautionary tale about what happens when you treat Amazon like a financial engineering problem instead of the relationship-driven, customer-centric platform it is.
For those of us who’ve been in the trenches, this isn’t shocking. Amazon rewards patient, methodical growth. It’s a marathon, not a sprint.
The brands that succeed on Amazon are the ones that invest in understanding their customers, building quality products, and growing at a pace that doesn’t compromise what makes them great.
The lesson here is clear:
There are no shortcuts to sustainable success on Amazon. The aggregators thought they could hack their way to dominance with big budgets and fancy operations.
Instead, they’ve ended up with bloated portfolios, declining brand values, and mountains of debt.
The opportunity on Amazon hasn’t disappeared. If anything, it’s bigger than ever.
But the path to success requires more than just capital. It requires discipline, focus, and a commitment to building brands the right way.
That’s why I walked away from the aggregator craze in 2021.
Sometimes, the best opportunities are the ones you don’t take.
What’s your take on the state of Amazon aggregators?
Drop your thoughts in the comments below! I’d love to hear what you think.
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