Can't bear it anymore! Amazon's top seller officially files for bankruptcy

Earlier, Packable announced layoffs and liquidation, which made many sellers sigh. It is reported that Pharmapacks, a brand under Packable , was once the largest seller on Amazon's US third-party market and also a top seller on Walmart, mainly selling health, personal care, beauty and home products.

On the Amazon platform, searching for Pharmapacks-related products, you can find that many products dominate the BSR list, and the number of reviews for its products is as high as tens of thousands.

As one of the fastest-growing private companies in 2015, Packable has also captured the favor of a lot of capital, winning financing from many investors including Carlyle Group, Fidelity and Lugard Road Capital.

That is to say, such a rapidly developing enterprise, under multiple blows, has no choice but to leave.

In March of this year , Packageable canceled its SPAC listing transaction due to "unfavorable market conditions"; in April, the company's founder and CEO Andrew Vagenas resigned; supply chain problems also caused a large amount of inventory out of stock and delayed purchase orders; revenue in 2021 also gradually slowed down.

In the layoff and liquidation notice released by the company some time ago, it stated: "Packable has failed to obtain new financing, and both internal and external financing plans have failed. Given that the company has no viable financing options, it can only cease operations, liquidate all remaining collateral, and close the business."

There are signs that Packable has problems. In its 2021 financial report, half of the company's revenue was spent on sales and distribution costs, and 20% of its revenue was spent on warehousing and management costs. Compared with ordinary companies, it requires more funds to operate.

In its future planning, Packable expects that after receiving the financing, it will suffer losses for three years and will not be profitable until the fourth year. Of course, this is also its prediction based on its optimistic market development prospects.

In addition, according to the latest news from the bankruptcy court's online hearing, Packable currently needs to deal with nearly US$272 million in debt and plans to sell remaining inventory worth US$79 million in the next six months.

There is no doubt that in the current market environment, with unfavorable financing, staff turnover and multiple supply chain issues adding pressure, even the industry's top sellers will not be able to turn the situation around and will have to choose to leave.

Of course, the collapse of Packable is also a warning to Chinese sellers: if a business wants to operate for a long time, it cannot rely solely on huge revenue, and cash flow and profits are indispensable.

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