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Show Notes

[00:03:23] - [First question] - What is an Amazon aggregator, and who sells through Amazon?

[00:05:26] - The scale and size of the aggregator market in general

[00:06:43] - The history of third-party sellers and the utility they offer Amazon

[00:08:20] - When they started inviting third parties to join their network and their market share

[00:09:47] - Amazon’s 40% take-rate and overview of the economic structure

[00:10:24] - How many individual storefronts exist and what they look like

[00:13:19] - Who is starting Amazon stores and an overview of a seller writ large

[00:14:43] - The initial insight that led to incorporating third-party aggregators

[00:21:17] - How many aggregators exist in the space today

[00:24:41] - Why vertical integration isn’t such a primary focus for aggregators

[00:26:53] - Ways aggregators find businesses and how they tend to acquire them

[00:31:29] - What the top 10 aggregators look like and their acquisition frequency

[00:32:25] - The common value add aggregators deliver post-acquisition

[00:34:30] - One of the weirdest things that’s enhanced optimization and improved revenue

[00:35:54] - What the org chart of an aggregator typically looks like

[00:36:47] - Deal pipelines and other sales and marketing functions

[00:40:22] - Interesting things in the space given how unique of a marketplace it is

[00:43:57] - New innovations and secondary ecosystems emerging as a result of aggregators

[00:45:13] - How an aggregator should think about Amazon and risks to their business

[00:48:29] - Why Amazon won’t use their data and customer ownership to own the market

[00:50:10] - Macro and system risks that would threaten the success of this business model

[00:52:35] - What keeps Amazon up at night and potential worries about aggregators

[00:53:54] - Reasons why they would pass on an acquisition opportunity

[00:55:32] - Contributing factors to explosive growth that exceeded expectations

[00:58:10] - Biggest takeaways for builders and investors from 3rd party aggregators

[01:01:04] - Where to learn more about Amazon’s third-party aggregators