There's money in the Amazon business (ie. banana stand)

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Move over aggregators. We're talking services.

The next trending aggregation: Software and Agencies in the Amazon space. While transactions are a bit slower, they are picking up steam and very much impacting the average Amazon business.  

Yes, some of the bigger fish software services such as Helium 10 and Jungle Scout are swallowing other software tools. Others like Carbon6 and ThreeColts are purchasing a variety of services as a core part of what they do. Many of these businesses have private equity and institutional capital behind them. In order to sound intelligent at your next Amazon Seller networking event, make sure you name drop these:

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• Jungle Scout acquired Downstream after raising $110m from Summit Partners
• Helium 10 joins forces with Pacvue and has similar parentage to Thrasio
• Carbon6 is still a bit in stealth mode but are actively accumulating software tools. You'll be hearing more about them.
• Ascential acquired Perpetua to join their family of ecommerce and Amazon related assets.
• ThreeColts already is public about many of their service offerings they've acquired.
• SmartScout has not been acquired and received no outside funding. Here we go underdogs!

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And what about Amazon Agencies?

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Amazon agencies also are a part of the action. Many of these are not in the public eye quite like the software businesses and often the buyer only makes one investment in the spacee. Here's a few highlights:

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• MightyHive acquires Orca Pacific
• Brainlabs acquires international agency Molzi
• Mega Agency Tinuity keeps growing.
• Bobsled Marketing gets scooped up.
• Amazon Aggregator Society brands acquires agency OmniiX.

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There's at least a half a dozen other transactions that are behind closed doors (Buy Box Experts, Cart???).  Activity is happening.  Every transaction reminds me how much bigger the space is than I had imagined. Did I miss any major transactions?

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So What?

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These don't really impact the average Amazon Seller or brand. Most of you reading this email will be using one of these services now or in the future. So it's nice to know what's going on. I also think that most Amazon Sellers already made one career transition to get where they are now, and will likely do another one. It's nice to see that there is energy at the top. So make your business moves accordingly.

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SmartScout Directory

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We are building a directory of Amazon services and content creators. I think it's going to be a very helpful resource for you. If you have a service that you think should be on it, or a podcast/youtube channel or anything like that. Let me know!

Search Smarter

          -Scott Needham

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