Why Amazon Aggregator Thrasio Sticks to Native Ecommerce Experts Over Legacy Vendors

If you’re not in the Amazon business, you may not be familiar with Thrasio.

But it’s one of the largest and fastest growing Amazon brand aggregators on the scene. The startup is essentially a holding company that buys and scales unbranded e-commerce products that sell well on Amazon and consolidates them under one roof, in some cases acquiring them directly.

Last October, Thrasio raised $1 billion, bringing its total to over $3 billion. This stock has helped the company amass over 300 e-commerce brands, mostly focused on Amazon.

However, the new funding didn’t just go towards new acquisitions.

Last year, Thrasio launched a process of evaluating potential SaaS media services and e-commerce consultants who could help connect competitive Amazon marketplace data that Thrasio uses to select brands to acquire.

These types of service providers can also help individual brands understand their own advertising and pricing strategies on Amazon, said Dan Parker, vice president and head of data and analytics at Thrasio.

As the largest and best-known of the “Amazon aggregators,” Thrasio is no stranger to Amazon’s advertising and sales dynamics. But it can still be difficult to “think about a business problem and turn it into a data problem,” Parker said.

For example, what are the most attractive attributes for potential product acquisition on Amazon? It’s a business issue.

But Thrasio needs to boil that down into different sets of data and metrics that can be tracked across platforms and tied to each brand, such as share of promotion categories and placements, organic sales rates vs. click-throughs, and metrics like Amazon’s inventory performance. Index. The latter is Amazon’s measure for connecting visibility on the platform to supply chain factors, including how efficiently a product can be packaged and shipped.

In January, Thrasio selected e-commerce consultancy Momentum Commerce to help with Amazon’s market intelligence. Momentum offers data services to the Amazon marketplace in general, Parker said, but it also helps sellers with search and advertising services.

“The data we use to target market acquisitions and the data we use to monitor the performance of our own brands on the platform [are] two sides of the same coin,” he said.

Momentum is a smaller, newer data and advertising provider, but it’s necessary, said Parker, who pointed out that the problem Thrasio is trying to solve isn’t exactly in the wheelhouse of the big portfolio companies. e-commerce advertising technology or agencies.

“For a sophisticated player operating at scale on Amazon, a traditional media services company isn’t going to cut the mustard,” said John Shea, CEO and Founder of Momentum Commerce. “And working with black box software isn’t going to cut the mustard.”

But how can promotions on a platform, like Amazon, be affected by Walmart’s prices? And how is the timing of inventory availability and warehousing factored into the ability to forecast campaigns? These are familiar questions for Momentum Commerce, Shea said, but not for agencies or consulting services that weren’t born for businesses in the e-commerce marketplace.

Beyond Amazon, Thrasio is also adding retail and e-commerce expertise on other platforms. Parker, who was previously head of retail solutions for Wayfair, noted that Thrasio’s brands sell in other marketplaces, such as Walmart, Target, Best Buy and even Chewy, the online pet retailer. .

This dynamic encompasses what Parker calls “indirect e-commerce,” meaning sales made through third-party marketplaces rather than the brand’s own direct-to-consumer site.

Today, Thrasio’s sales and acquisitions are focused on Amazon, but the company plans to dig even deeper into e-commerce.

As Thrasio assembles its data and advertising infrastructure, it will continue to focus on particular data and expertise related to e-commerce market dynamics.

“As we think about the future, we are expanding the channels we operate on,” Parker said. “So we need a technology platform built for and scalable not just on Amazon, but to respond to the dynamics of all major channels and markets.”


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