At BRANDED, our mission is to become the world’s leading consumer products company. We do that by acquiring high-quality brands from innovative and successful Amazon e-commerce entrepreneurs. But we’re different from other aggregators. At BRANDED we’re strategically focused on the most attractive consumer products categories and we truly add value to the brands we acquire. We have the financial and human capital to accelerate both FBA and DTC businesses with investments of time, technology, and expertise across sourcing, logistics, product development, and marketing. And as an international business, we understand the different nuances of each market and its consumers.
If you’re a brand that’s interested in working with BRANDED, here’s what you can expect from the acquisition process.
Relationship building
When an Amazon FBA entrepreneur reaches out to us to inquire about BRANDED acquiring their brand, they’re oftentimes not 100% sure they want to sell. That’s understandable. We recognize that selling a business in which a founder has such an enormous financial and emotional investment is one of the biggest decisions of their lives.
As an initial step, we meet with the entrepreneur to get to know more about them, their business, their brand and why they’re interested in exploring a sale. From there, we review the company’s financials and hold a follow-up conversation to explore more. Following these two conversations, we can often present an offer within a week.
BRANDED is passionate about making the process easy and transparent. We treat our prospective acquisitions with professionalism and transparency so that they feel like a client from day one.
How BRANDED works
Every entrepreneur is unique and has different objectives. BRANDED is flexible in our approach to buying FBA businesses. We typically acquire 100% of a business and we often pay all or most of the consideration up front. In certain cases, we structure additional payments over time, so sellers can participate in the future growth of the business.
In special cases, we also allow FBA business owners to retain a minority equity position in the business, so they can turbo-charge their exits. These partnership deals often involve the business owner joining BRANDED and managing their business on our platform. In partnership deals, the owner is typically able to retain a portion of their team and BRANDED supports them with sourcing, supply chain, marketing and administrative resources. After a year or two, the owner exits the business completely. We are flexible with each seller on percentage ownership, the role they wish to maintain, and which team members stay with the brand.
BRANDED looks for real commitment from sellers and as a result we do not generally participate in wide auctions. We are a strategic group looking for like-minded entrepreneurs.
What BRANDED looks for in Amazon FBA sellers
We seek out unique, innovative entrepreneurs. Here are six key characteristics that we look for in evaluating the strength of an Amazon FBA entrepreneur.
1. Maniacal product focus
We really like people that geek out on their own products and have a passion for what they’re building. That passion tells us that their product is probably different from anything else on the market and will survive in the long term.
2. A willingness to bet on themselves
We recognize that owners have the best insight into their businesses’ near-term potential and we seek to partner with those eager to share in that upside.
3. A comprehensive understanding of the market
They understand the competitiveness in their given market — the players, who’s ahead, and what their competitors are doing. They can clearly articulate exactly how they’ve positioned their products to compete and win in the marketplace.
4. A deep, authentic connection with target customers
These entrepreneurs are their own best customers. They know what their customers want and how to advertise to them.
5. Sharp commercial focus
Amazon is a great marketplace but it’s competitive. You have to figure out your edge in order to get traction, get reviews and stand out. We look for owners who approach selling on Amazon as a “craft,” and have developed unique methods and tools to stay ahead while still playing by the rules.
Requirements of working with BRANDED
Beyond the entrepreneur, we also take a close look at their business before moving forward with an acquisition, including:
- A strong track record in their market
Brands that have been in business for a few years are more established than newer brands that have less brand equity. These older brands are also more likely to have more product reviews, and higher ratings and higher repeat customers. These customer reviews tell us a lot about the brand.
- A special, in-demand “evergreen” product
We look for products that are on the cusp of becoming a brand itself. These special products clearly meet and exceed their customers’ needs and you can see it in the reviews. Patent protection is great, but it’s not a requirement. We also target “evergreen” products for which there will be sustained demand for years to come. We also look for private label businesses and not resellers.
- Healthy financials
At BRANDED, we’re focused on working with brands that are growing fast, profitable, and have annual revenue of $4-5M or more.
- Key product categories
There are what feels like infinite different product categories in the e-commerce ecosystem. At BRANDED, we are focused on “brand-able” product categories, including Beauty & Personal Care, Health, Home, and Hobbies — all categories for which brands really matter and consumers have a passion for the products they use.
BRANDED was founded by sellers, for sellers. Our innovative, digital-first approach will help your business scale. With global consumer goods experience, we will help you discover the potential of your FBA business.
