Growing a brand today is challenging. Marketplace giants have set high consumer expectations for fast shipping, easy returns, and prompt customer service. To meet these demands, brands often collaborate with strategic partners known as Ecommerce Accelerators and Ecommerce Aggregators.
These two options offer distinct paths to achieving rapid online growth. Aggregators acquire smaller brands, scaling them to generate profit through increased sales. In contrast, Accelerators form deep partnerships with brands, purchasing products at negotiated wholesale rates and profiting from reselling those items.
Choosing the right model depends on your business goals. Let’s delve into what each model entails for ecommerce brands to help you make an informed decision.
What is an Ecommerce Accelerator?
We define an Accelerator as something that causes events to happen or develop more quickly. In this case, it’s an organization that helps brands sell across the internet quicker.
Usually, fulfillment is a key capability of Ecommerce Accelerators. Brands need to be able to offer 2-day shipping, at minimum, to earn an Amazon Prime badge. To meet that need, significant warehouse space, a trusted workforce, and an inventory management system are required. That said, not all Ecommerce Accelerators can offer this (nationwide or globally). If your brand needs a fulfillment partner, be sure to understand the capability of the Ecommerce Accelerator that you’re considering.
Another key capability lies in marketplace integration or marketplace management. Some Accelerators only focus on Amazon, but others partner with many online retail channels, getting your brand in front of new and different customers. This service may also include aspects like advertising, customer service, reverse logistics, data and growth planning, content management, creative services, and more. Each accelerator operates slightly differently – whether through the marketplace integrations they can offer, account management level, global footprint, or service level customization.
What is an Ecommerce Aggregator?
An aggregator, in its simplest form, is an entity that collects materials from various sources. Ecommerce Aggregators acquire small brands or companies that sell online, primarily focusing on smaller, private-label brands operating under the Amazon FBA model.
While the Ecommerce Aggregator model has been around since the early days of online marketplaces, it saw significant growth in 2020, spurred by the ecommerce boom during the COVID-19 pandemic. For instance, Win Brands Group initially acquired Shopify businesses, eventually generating $5M-$30M in revenue and expanding into multiple channels. This kind of growth contributed to the ecommerce aggregator industry becoming a $16 billion market.
Ecommerce Aggregators scale brands similarly to Accelerators by employing teams of experts to handle marketing, merchandising, and inventory management. However, the key difference is that Aggregators purchase and own the entire company, whereas Accelerators partner with brands on a product basis, allowing the original business to retain ownership.
Spreetail: The Omni-Channel Ecommerce Accelerator
Spreetail is the #1 oversize omni-channel accelerator, and your partner in achieving growth without the added operational costs. Our ecommerce experts source products from top-notch manufacturers, list them in prime marketplaces, and fulfill orders in just 2 days from any one of our seven distribution centers around the country. Ready to take your brand to new heights? Connect with one of our buyers and explore the exciting growth opportunities waiting for you.
Growth Marketing Manager
