The Amazon aggregator boom that dominated 2020-2022 has given way to a dramatic shakeout in 2025-2026. Multiple high-profile aggregators have shut down, filed bankruptcy, or drastically scaled back operations. This consolidation affects not just sellers who sold to aggregators, but the entire Amazon ecosystem including valuation expectations, acquisition opportunities, and competitive dynamics. Understanding what happened and what comes next is crucial for sellers planning exits, competing with aggregator-owned brands, or navigating the changing marketplace landscape.
The Rise and Fall: What Happened?
Amazon aggregators raised billions in venture capital between 2020-2022, acquiring thousands of Amazon FBA businesses at premium valuations. The thesis was simple: consolidate fragmented brands, apply operational expertise, and achieve economies of scale. However, reality proved more challenging than the models predicted. Aggregators discovered that Amazon brands don’t create synergies as easily as traditional businesses, operational improvements are harder to implement than expected, and the brands they acquired often performed worse under new ownership than under original founders.
$15B+
Capital raised by aggregators (2020-2022)
60%
Aggregators that shut down or restructured (2024-2026)
-40%
Average revenue decline post-acquisition
2-3x
Current multiples vs 4-6x at peak
Major Aggregator Failures and Consolidations
Several prominent aggregators have exited the market or drastically restructured. Companies that raised hundreds of millions have shut down entirely, unable to service debt or meet investor return expectations. Others have sold portfolios at significant losses, sometimes for 30-50% of acquisition cost. A few are limping along, attempting to stabilize businesses while dealing with debt burdens and investor pressure. Only a handful of aggregators—those with strong operational expertise, conservative acquisition practices, or deep-pocketed patient capital—are thriving.
Seller Impact: Some sellers who accepted earnouts as part of their sale are receiving reduced or zero earnout payments as aggregators struggle. Sellers who took all-cash deals fared much better than those who bet on future performance.
Why the Model Failed for Most
The aggregator failures stem from fundamental miscalculations. Amazon brands proved more dependent on founder expertise and passion than expected—many declined without the original owner’s involvement. Promised synergies from consolidating multiple brands rarely materialized since each product requires specialized knowledge. Debt financing used for acquisitions became unsustainable when revenue declined rather than grew. Rising Amazon advertising costs and increased competition eroded margins across portfolios. Poor due diligence led to acquiring businesses with hidden problems or unsustainable growth.
Impact on Seller Valuations
The aggregator shakeout has significantly impacted business valuations. Peak multiples of 4-6x annual profit have fallen to 2-3x for most businesses. Buyers now conduct more rigorous due diligence, catching issues that previously slipped through. Sellers with strong documentation, diversified traffic, and consistent growth still command premium multiples. Earnouts have become standard rather than exceptions as buyers protect against post-acquisition performance declines. The easy money and frothy valuations of 2021-2022 are gone, replaced by more rational, sustainable valuations.
Current Market Reality: A business that would have sold for $2 million at 5x multiple in 2021 now sells for $1-1.2 million at 2.5-3x. However, quality businesses with strong fundamentals still find buyers at reasonable valuations.
Opportunities in the Distress
The aggregator failures create opportunities for savvy entrepreneurs. Aggregators are selling underperforming brands at deep discounts, sometimes for 1-2x annual profit. Experienced Amazon sellers can acquire these brands, apply operational expertise, and potentially revive them. This represents a reversal of the typical acquisition dynamic—sellers buying from aggregators rather than selling to them. Additionally, brands neglected by struggling aggregators are losing market share, creating openings for competitors to capture displaced customers.
Who’s Still Buying Amazon Businesses?
Despite the aggregator shakeout, healthy M&A activity continues from different types of buyers. Strategic acquirers including established brands expanding into Amazon are paying fair prices. Private equity firms with e-commerce expertise are selectively acquiring quality businesses. Individual buyers and smaller holding companies are purchasing businesses they can personally manage. Successful aggregators that survived the shakeout are cherry-picking the best opportunities at reasonable valuations. The buyer pool has changed, but it hasn’t disappeared.
What Makes a Business Attractive Today?
In the post-shakeout environment, buyers prioritize different characteristics than during the boom. Attractive businesses now feature consistent, sustainable growth rather than explosive but risky expansion, strong organic rankings reducing PPC dependency, diversified traffic sources beyond Amazon, documented systems and processes enabling smooth transitions, and healthy margins of 25%+ after all costs. Businesses dependent on a single product, heavy PPC spending, or recent unsustainable promotions face skepticism and lower valuations.
Building for Exit: Focus on fundamentals that create lasting value rather than vanity metrics that impressed 2021 buyers. Sustainable businesses built on solid foundations command better multiples from today’s sophisticated buyers.
Lessons from Failed Aggregations
The aggregator experience teaches valuable lessons for all sellers. Founder involvement often drives success more than systems alone—businesses need both. Diversification across multiple products and traffic sources provides crucial resilience. Operational complexity increases with scale rather than decreasing as aggregators assumed. Brand building matters more than aggregators appreciated—strong brands weather transitions better. Amazon expertise is specific and not easily transferable across widely different products. These lessons apply whether you’re building to sell or building to hold.
The New Normal for Exits
Sellers planning exits must adjust to the post-shakeout reality. Prepare for more extensive due diligence taking 45-90 days rather than 2-3 weeks. Expect buyers to require seller involvement post-close through transition periods or earnouts. Accept that multiples will be more conservative, reflecting realistic sustainable value. Focus on demonstrating business quality through strong fundamentals rather than growth at any cost. Build relationships with multiple potential buyers rather than assuming aggregators will compete aggressively.
Competing Against Struggling Aggregator Brands
For sellers competing with aggregator-owned brands, the shakeout creates advantages. Many aggregator-owned brands are being neglected due to parent company distress, with reduced inventory, outdated listings, and poor customer service. These brands are losing rankings and market share, creating openings for well-run competing products. However, some aggregator-owned brands are being operated expertly and remain formidable competitors. Assess each competitor individually rather than assuming all aggregator brands are struggling.
Looking Forward: What’s Next?
The aggregator model isn’t dead, but it has matured dramatically. Surviving aggregators have learned expensive lessons and adjusted operations accordingly. New entrants face much higher bars for raising capital. The era of massive funding rounds and aggressive acquisition targets has ended. What remains is a more rational market where professional operators can build value through genuine operational improvements rather than financial engineering. This is ultimately healthier for the entire Amazon ecosystem.
Strategic Implications for Your Business
Whether you plan to sell or hold your Amazon business long-term, adjust your strategy based on the new reality. Build sustainable fundamentals rather than optimizing for short-term metrics that impressed boom-era buyers. Develop operational systems that create value regardless of ownership. Maintain financial discipline and healthy margins rather than chasing growth at any cost. Stay informed about the M&A market even if not planning to sell—it affects competitive dynamics and business valuations.
Conclusion
The Amazon aggregator shakeout marks the end of an unusual period in e-commerce history. Billions in capital chased deals at unsustainable valuations, creating a brief seller’s market that has now corrected. What emerges is a more sustainable ecosystem where quality businesses find appropriate buyers at fair valuations, while weaker businesses must prove their worth or accept market pricing. For sellers, this means focusing on building genuine value rather than optimizing for frothy exit multiples. The opportunity to sell remains, but the path requires stronger fundamentals and more realistic expectations. Build a great business first, and valuation will follow—just perhaps not at the inflated levels of 2021-2022.