📉 The rise and fall of SellerX
SellerX was founded in 2020 by Harvard Business School grads Malte Horeyseck and Philipp Triebel. They aimed to buy Amazon-native brands, quickly scaling by acquiring businesses with at least $1M revenue and 30% annual growth. SellerX attracted up to $900M in funding, including a $400M loan from Blackrock. However, by 2024, the company faced insurmountable debt and will be auctioned in Berlin on September 17. This marks a sharp decline for a company that once thrived by acquiring successful Amazon sellers.
💸 Investor funds couldn’t save the model
Billions were invested into Amazon Aggregators like SellerX, but many failed to scale effectively. SellerX isn’t the first to struggle; other aggregators also face financial challenges. Blackrock pulling its loan signals deep problems with the model, which relied on massive debt to finance acquisitions. The hope was that economies of scale and Amazon optimization would fuel quick returns, but the results fell short, leading to heavy losses.
🔑 Why sellers sold—and why it didn’t work
Many Amazon businesses that aggregators bought were one-person operations with great initial success. Owners sold because they hit a growth ceiling. However, aggregators struggled to replicate the original passion and drive of these founders. With a slowing global economy, these businesses often failed to grow further, making it difficult for aggregators like SellerX to maintain sales, let alone scale them.
🏚️ SellerX auction: Future of the model?
The upcoming SellerX auction will be a telling moment for the aggregator model. The sale will indicate whether there’s any long-term value left in these businesses or if the model is fundamentally broken. While the auction may bring in some funds, it’s unlikely to cover SellerX’s debts. The fate of SellerX reflects wider doubts about the sustainability of Amazon Aggregators, a model that might already be fading from the e-commerce landscape.
Will the Amazon Aggregator model survive this collapse?
