How an FBA Aggregator Bought a 100M+ Business with Chris Bell, CEO of Perch
Firing The Man · with Chris Bell · September 28, 2021 · 43 min
Summary
This episode provides a deep dive into the FBA aggregation model through the lens of Perch, a company that acquires and operates Amazon FBA businesses. Chris Bell, CEO of Perch, shares how his company scaled to over $100M in revenue, offering invaluable insights into the acquisition process, due diligence, and strategies for growing acquired brands. This is a must-listen for Amazon sellers considering an exit, or anyone looking to understand the mechanics of large-scale FBA operations.
Key takeaways
FBA aggregators like Perch look for specific criteria in businesses, including product category fit, sales volume, profitability, brand strength, and operational efficiency. Sellers should optimize these areas to increase their business's attractiveness.
The due diligence process for FBA acquisitions is rigorous, involving thorough evaluation of financials, operations, and market positioning. Sellers need to have their data organized and verifiable to streamline this process.
Scaling acquired FBA businesses involves operational improvements, marketing optimization, product line expansion, and leveraging technology. Aggregators apply these strategies to drive growth post-acquisition.
Exit strategies for Amazon sellers should focus on building a robust, profitable, and efficient business that can operate independently. This includes strong brand assets and well-documented processes.
Perch's success highlights the importance of a strong team and significant funding for managing a diverse portfolio of brands and executing future acquisitions effectively.
Episode 92 Chris Bell is Founder and Chief Executive Officer at Perch, a technology-enabled consumer products company that acquires and operates Amazon FBA businesses with winning products in their respective categories. Chris had designed and built the Wayfair Delivery Network, which has delivered over 3 million heavy bulky orders annually, before starting Perch. At Bain & Company, Chris worked with Fortune 500 companies on growth strategy and leading private equity firms on M&am...
What does this episode say about amazon & marketplaces?
FBA aggregators like Perch look for specific criteria in businesses, including product category fit, sales volume, profitability, brand strength, and operational efficiency. Sellers should optimize these areas to increase their business's attractiveness.
What does this episode say about supply chain & operations?
The due diligence process for FBA acquisitions is rigorous, involving thorough evaluation of financials, operations, and market positioning. Sellers need to have their data organized and verifiable to streamline this process.
What does this episode say about finance & fundraising?
Scaling acquired FBA businesses involves operational improvements, marketing optimization, product line expansion, and leveraging technology. Aggregators apply these strategies to drive growth post-acquisition.
What does this episode say about founder & leadership?
Exit strategies for Amazon sellers should focus on building a robust, profitable, and efficient business that can operate independently. This includes strong brand assets and well-documented processes.
What does this episode say about amazon & marketplaces?
Perch's success highlights the importance of a strong team and significant funding for managing a diverse portfolio of brands and executing future acquisitions effectively.
