Entering the Chinese market with 1 billion, Olsam once again sets off a wave of Amazon store acquisitions!

Now the wave of capital acquisition of Amazon stores is rising, and there are constant news of financing from acquisition companies. Many of them immediately set their sights on China after obtaining funds.

77 acquisitions raised nearly $10 billion in total

"If an acquisition company offers to buy out your high-quality store (brand) at a one-time price that is several times the annual profit, would you be willing to sell it?" Similar questions have been raised repeatedly in the past six months.

Today, the wave of capital acquisition of Amazon stores continues to rise. Since the first $8 million in funding in April last year , in just one and a half years, various acquisition companies have received nearly $10 billion in financing. Marketplace data shows that there are currently 77 acquisition companies holding nearly $10 billion (about 64.5 billion yuan) to focus on third-party sellers on the Amazon platform to purchase high-quality stores (brands) in bulk.

It is worth noting that most of these companies have been established for less than a year, but their growth rate is astonishing. Among them, 24 acquired companies have raised more than US$100 million in financing.

Olsam Group is a representative one among them. It recently received US$165 million (approximately RMB 1.06 billion) in Series A financing .

Olsam was clear about the purpose of the funds : to expand the acquisition of high-quality Amazon FBA stores (brands) and to help expand its platform and staffing. At the same time, they immediately set their sights on acquisitions in China.

" Chinese sellers account for up to 60% of the global sellers , and we also believe that the Chinese market is one of our most important markets . " Ollie Horbye, co-founder of Olsam , said that Olsam's new round of financing has laid a solid foundation for their future cooperation with many Amazon sellers. As Olsam continues to develop, they will acquire multiple Chinese brands in the next one to two years.

After selling their stores, Chinese sellers did not leave Amazon

Acquisition firms are pouring into China with large amounts of capital, and Amazon sellers are making their choices.

For sellers, there are many reasons for selling their Amazon stores (brands). Some want to buy a house in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, some use it to pay for their children's education, and some want to exit the current product category and explore another category with greater potential.

Ollie believes that the third option is the choice of most Chinese sellers. Compared with European sellers, most Chinese sellers choose to reinvest their funds on Amazon after selling their stores, while many European and American sellers choose to use the money to improve their personal lives or invest in other areas.

"If an acquisition company finds me, I will definitely sell." A Dongguan seller whom the editor had previously contacted said that the brand he runs has reached a bottleneck and he wants to invest in another promising product, but his funds are limited. If he can sell the existing store to obtain funds to develop new product categories, that would be great.

The situation is different for sellers in Europe and the United States. For example, after Andreas, a German seller, sold the Amazon store he and his partner operated to a German acquisition company, he first bought a favorite Lamborghini sports car and drove it around the country roads. Adam St. George, a seller who sold his store to an American acquisition company, went to Hawaii for a month-long vacation with his family.

These sellers who remain on Amazon hold a lot of money, which means that competition will become increasingly fierce in the future. It may be a good thing for sellers to have the opportunity to cash out and leave at this time.

Although many sellers have successfully completed transactions with acquisition companies, this is an emerging business model after all, so many people are still skeptical and have many questions, such as one of the most frequently asked questions: "How to operate a store after it is acquired? "

Revenue increased by more than 100% year-on-year, and the brand became stronger after the acquisition

"Taking the brand to a higher level" is exactly what Olsam is good at and passionate about. It is reported that through supply chain, marketing and brand management expertise, efforts are made to make the brand achieve better results within a year and leave a deep impression in the minds of buyers.

"I think Chinese sellers have a strong supply chain, but generally lack a good brand story." Ollie said that after acquiring the stores (brands) of Chinese sellers, Olsam will focus its operations on packaging brands, marketing and brand building. He hopes that through Olsam's operations, it will be able to create a brand like Nike and increase their revenue by at least 10 times.

In this regard, Olsam has already achieved successful experience with sellers in other countries.

Olsam previously acquired Peak Coffee, a British brand that sells a variety of coffee capsules. Its best-selling product, the rotating coffee pod holder, has 3,500 reviews on Amazon and an average rating of 4.8. The brand ranks second in the market.

Many people would think that such an excellent brand would leave very little room for the acquiring company to improve and increase profits. However, what is unexpected is that after Olsam took over the operation, the brand has achieved tremendous growth, with revenue increasing by more than 100% year-on-year. Not only that, its click-through rate in March increased significantly, and the click-through rate (CTR) of ads also increased from 0.3% to more than 0.5%.

The success of this series is due to a new brand and creative update by Olsam, such as a comprehensive redesign of the brand logo and packaging. In addition, it has also expanded into the US market and optimized advertising spending.

Olsam has many similar cases. For example, Enjoy Native, a brand that sells tobacco pouches, deodorant bags and other products on Amazon.com, was transformed into a sophisticated consumer brand by Olsam through reshaping its brand image and creative appeal and improving the brand's inventory management from the supply chain. Finally, in March, the off-season, it achieved record sales.

"Today's Amazon market is different from previous markets. It is increasingly difficult for small and medium-sized sellers to survive. In fact, a more professional and powerful group management model is needed to better operate this business." Ollie said that after taking over the brand from Chinese sellers, Olsam will, with strong financial support, inject international elements into them, carry out branding operations, and promote it globally.

Olsam enters China with a strong presence, providing new options for sellers to sell their stores

Today, Olsam has entered China with a large amount of capital and set up the Chinese team's office in Shenzhen, where sellers gather. At the same time, Olsam has also deployed its own supply chain team in China, which has more than 20 years of experience in managing complex global suppliers.

Some people may ask, there are nearly a hundred acquisition companies now, what is the difference between Olsam and other companies? What are the advantages?

According to the editor, the differences and advantages include:

First, Olsam has a skilled operations team across finance, brand management and supply chain. If these functions are internalized, it will make the brand sold by sellers a smooth and seamless process.

Second, the core of Olsam is to develop brands. Instead of buying brands and waiting for them to appreciate, and then selling them at a high price, Olsam is to tap into the value of brands, expand them as much as possible, and eventually build them into a large international brand. The ultimate goal is to make the brand a synonym for the category, just like when it comes to sports shoes, consumers will first think of NIKE.

3. Olsam was founded by a former Amazon team that has managed thousands of international FBA brands, including some of the largest sellers in the UK and EU. In addition, the team has been part of Amazon's early operations team. Therefore, Olsam is far more than just buying brands. Instead, it can use their experience and funds to continue investing in its own operating platform and enhance existing brands by tracking millions of real-time data points on the market.

If sellers also want to sell their own stores (brands) to Olsam, please scan/long press the QR code below to add WeChat.

Olsam

Acquire Amazon Stores