Mo Money Mo Problems

Billions of dollars are flowing into Amazon brands right now. Aggregators, private equity, and buy-side investors are chasing every seller doing seven figures and up. If that much smart money is betting on ecommerce, it is worth asking what they see that the average shopper never thinks about.

Michael Maher talked with Jake Barnett, VP of Business Development at Fortunet, about what two years on the buy side of Amazon acquisitions taught him, and why the deal terms sellers get today look nothing like they did when the aggregator wave started.

The Aggregator Land Grab Is Real

Jake Barnett described a market that went from a handful of buyers to roughly seventy aggregators, collectively raising billions of dollars to acquire Amazon-native businesses. The thesis is straightforward: ecommerce is the future of retail, and within ecommerce, Amazon still commands the largest share of demand.

"THRASS has really paved the way, but they're one of something like 70 of these aggregators that are out there now. Collectively, they've raised something like 7 billion in capital, just devising mostly Amazon businesses."

— Jake Barnett, VP of Business Development at Fortunet

That capital isn't chasing new launches. It's defending brands that already rank, already convert, and already have reviews. Buyers would rather pay up for proven performance than gamble on something unproven.

Brand Now Moves The Valuation Needle

Two years ago, Jake Barnett assumed brand mattered little on Amazon. Shoppers search for a product, compare reviews, and buy. Today he sees it differently. Sellers with strong photography, A+ content, and a real story behind the product are pulling higher valuations, not just higher conversion rates.

"Some of the most attractive brands that I see, both from a valuation perspective, as well as just from a sales and profitability perspective, are ones that have very nice brands, and really emphasize that... Brand does seem to matter more on Amazon."

— Jake Barnett, VP of Business Development at Fortunet

Michael Maher pushed further, arguing that Amazon's growth has made differentiation harder to fake. When search results are commoditized, a story and a consistent visual identity are what separate a brand buyers want to acquire from a listing they'll pass on.

Amazon Didn't Kill Small Business, It Replaced One Generation With Another

A common complaint is that Amazon destroyed small business. Jake Barnett's view, shaped by hundreds of seller conversations, is more nuanced. He regularly meets founders who arrived with almost nothing and built multi-million dollar operations selling on and off Amazon.

"Maybe it killed the old small business person, but it's given birth to a whole new generation."

— Jake Barnett, VP of Business Development at Fortunet

Michael Maher added that roughly 54 percent of shoppers now start product research on Amazon, well ahead of Google. That single stat explains why even brands with no intention of selling on Amazon still need a presence there. If people check your reviews on Amazon before buying anywhere else, ignoring the platform costs you sales at Target, Walmart, and your own website too.

Advertising Has Become The Price Of Entry

Conversion rate benchmarks have climbed fast. Jake Barnett noted that sellers who once competed comfortably at a 20 percent conversion rate now need 30 percent or higher just to stay in the game, as aggregators pour money into content, imagery, and advertising spend that smaller sellers can't easily match.

• Expect margins to compress in competitive categories as aggregator-backed brands outspend on ads and content.
• Treat early unprofitability on new launches as a deliberate investment, not a failure signal, if the advertising strategy is sound.
• Build a real brand identity, photography, and story, not just a listing that ranks.
• Don't abandon your own website in favor of Amazon or vice versa. Traffic and reviews flow both directions.
• Watch conversion benchmarks in your category closely. What worked a year ago may no longer be competitive.

What This Means For Brands

The money flowing into ecommerce isn't a bubble chasing hype. It's a bet that Amazon-native brands with real differentiation will keep compounding value, and that the sellers who treat their listing like a brand rather than a commodity will be the ones aggregators fight to acquire. Whether or not you plan to sell your business, building toward that standard now protects your margins and your future options.