Image Credits: Web Deals Direct (opens in a new window) On the heels of raising $775 million earlier this year, Perch has made a big acquisition that will bring on a number of new brands and operations infrastructure to enhance its position in the race to roll up smaller merchants that sell and fulfill sales through Amazon. The company has acquired Web Deals Direct , an Amazon seller that owns 30 brands of its own pulling in $80 million in revenue annually and also operates its own warehouse.
Terms of the deal are not being disclosed but I understand from sources that it was a nine-figure deal valued between $100 million and $200 million.
There are millions of merchants currently on Amazon’s marketplace, leveraging the e-commerce giant’s storefront, search tools, fulfillment infrastructure, payment tools, warehouses and delivery network to sell products to buyers. Companies like Perch compete against the likes of Elevate Brands (which yesterday announced $250 million in funding ), Thrasio, Heyday, SellerX, Branded, Razor Group and many others that are seizing an opportunity to snap up and roll up the more successful of these to bring better economies of scale into the model, while also building technology to better measure and leverage sales analytics and more.
While these companies are, essentially, acting as marketplace consolidators, this latest acquisition is significant because, in a sense, it underscores an interesting shift towards a consolidation of the consolidators themselves.
WDD’s categories span home goods, sports, arts and crafts, pet supplies and office products, and […]
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