Click here to download our 2023 Q3 eCommerce brand valuation report

eCommerce Summit 2024

Click here to download our 2023 Q3 eCommerce brand valuation report

Click here to download our 2023 Q3 eCommerce brand valuation report

Key Takeaways From Our London Ecommerce Acquirors Conference

Key Takeaways From Our London Ecommerce Acquirors Conference

London Ecommerce Acquirors Conference

Blog Summary

This blog post distils the key takeaways from our eCommerce Acquirors Conference in London on September 14th 2023. The conference brought together over 50 c-suite executives from FBA and DTC eCommerce brand acquirors. The focus of the conference was on five areas selected by members of our acquiror WhatsApp group: 1) supply chain optimization; 2) operational efficiency; 3) technology and data; 4) aggregator M&A; and 5 the future of the eCommerce aggregation space. We would like to thank you the following sponsors who actively contributed to the success of the conference: Event sponsor: Airwallex, Carbon6, Conjura, Getida, Kapoq, MBM Commercial, Wayflier Drinks Sponsor: SOLO

Recent Blogs

London Ecommerce Acquirors Conference

Blog Summary

This blog post distils the key takeaways from our eCommerce Acquirors Conference in London on September 14th 2023. The conference brought together over 50 c-suite executives from FBA and DTC eCommerce brand acquirors. The focus of the conference was on five areas selected by members of our acquiror WhatsApp group: 1) supply chain optimization; 2) operational efficiency; 3) technology and data; 4) aggregator M&A; and 5 the future of the eCommerce aggregation space. We would like to thank you the following sponsors who actively contributed to the success of the conference: Event sponsor: Airwallex, Carbon6, Conjura, Getida, Kapoq, MBM Commercial, Wayflier Drinks Sponsor: SOLO

Read Time: 3 minutes

  1. Supply Chain: A Lever For Customer Satisfaction

Panel Members:

  • Matty Vogel: Co-Founder of Redfits.
  • Neil Kuschel: Former CEO of Europe Global-e.
  • Warren Weener: Supply Chain Specialist at eBrands’.

This session highlighted the role of technology in demand forecasting to elevate customer satisfaction. A majority (52%) of attendees are optimistic about demand trends, with 81% investing in technology to streamline supply chain processes. Product quality, timely deliveries, competitive pricing, and transparent tracking and communication were the pivotal factors in customer satisfaction. Mark your calendars for our next conference in New York, Tuesday 16th January 2024.

Key Poll Results:

We polled our audience to gauge the primary criteria for evaluating suppliers within the industry. The results were as follows:

Key Metrics For Supplier Evaluation:

  • Quality and reliability: 65%.
  • Cost competitiveness: 35%.

Usage Of Demand Planning Tools:

  • Traditional spreadsheets: 60%.
  • Specialized software: 40%.
  1. Operational Efficiency: The Key Theme Of 2023

 Panel members:

  • Aman Advani: Senior Director of Operations at A02 Management.
  • Ben Fletcher: Co-Founder & CEO of The Mothership.
  • Berk Nalcacioglu: Founder at Robust Ventures.
  • Jim Mann: VP of Europe at Getida.
  • Mark Finnerty: Director of Growth Capital Markets at Wayflyer.
  • Stephan Koch: Chief of Staff at Airwallex.

Having teams bought into relevant metrics and automating lower value work were deemed pivotal for operational efficiency.

Key Poll Results:

We surveyed the audience to better understand their current focus, barriers, and strategies to improve operational efficiencies:

Focus Areas:

  • Operational efficiency: 77%.
  • Productivity: 23%.

Barriers To Operational Efficiency:

  • Team alignment, motivation, and culture.
  • Amazon’s interface inefficiencies.

Strategies To Improve Operational Efficiency (Ranked)

  1. KPI ownership: 31%.
  2. Process improvements: 23%.
  3. Good prioritisation: 15%.
  4. Stated clear targets: 15%.
  5. Quick and accurate financial reporting: 9%.
  6. Strong processes: 7%.

 

  1. Technology: The In-House vs. Outsourced Debate

Panel members:

  • Georgina Merhom: Founder and CEO at SOLO.
  • Frank Quilty: Co-founder & CEO at Conjura.
  • Jeff Scolnick: Enterprise Solutions Lead at Carbon6.
  • Kevin Fischer: President at Kapoq.

The technology and data panel centred their discussions around the significance of building software in house as a core competency to avoid risk of releasing outdated technology. The absence of a CTO in 67% of respondent companies underscores the industry’s tech gap. 58% of companies have less than 10% of personnel working on technology and data.

Key Poll Results:

We polled our audience on their software buying and usage patterns. Below are the results:

How many vendor does your firm use?

  • 5 to 10 vendors: 85%.
  • < 5 vendors: 15%.

Buy vs. Build:

  • Buying: 60%.
  • Building: 40%.
  1. M&A Of Aggregators

 Panel members:

  • Jaschar Huppert: CEO and Founder at WeTheBrands.
  • Johannes Rossner: M&A Associate at The Fortia Group.
  • Mike Vermeulen: Co-Founder and CEO at Kanaan Sellers Group.

 Capital structure and founder team composition are the main challenges regarding M&A of aggregators.

Key Poll Results:

We conducted a survey among our audience to gain insights on financial positions of aggregators and the factors influencing potential mergers.

Below are the findings:

How many aggregators are in technical default on their debt?

  • >45%: 73%.
  • 30-45%: 27%.
  • 15%-30%: 0%.
  • 0%-15%: 0%.

What are the key drives of M&A amongst aggregators? (Ranked):

  • 1) Cost Synergies.
  • 2) Revenue.
  • 3) Creditors.
  • 4) Strategic need (e.g. tech platform).
  • 5) Geographic expansion.
  • 6) Other.

Status Of Current Discussions (MoA):

  • Informal: 43%.
  • None: 36%.
  • Due Diligence: 21%.
  1. The Future of Aggregation: A Dynamic Ecosystem

Panel Members:

  • Sanford Wu: Head of Investment and M&A at Profound Commerce.
  • Simon Deeny: Director and Co-Founder at eComplete.
  • Tarig El Sheikh: CEO at Cinchona.

The concluding panel discussion revealed that in the current landscape of lenders avoiding repossessing assets or forcing defaults, aggregators will likely prioritize the divestment of underperforming brands over workforce reduction.

 

Key Poll Results:

The final survey of the day focused on uncovering growth strategies, primary objectives, factors influencing valuation, and the perspectives on the future outlook for aggregators. Here are the outcomes:

Next 12-month Growth Strategy:

  • Grow top line organically: 62%.
  • Grow top line via Acquisition: 38%.

What are your top priorities in the next 12 months? (Ranked):

  1. Reducing Leverage: 38%.
  2. Cost reduction via synergistic mergers: 28%.
  3. Debt renegotiation: 12%.
  4. Cost reduction via headcount downsizing: 11%.
  5. Lowering costs by reducing marketing expenses tied to sales costs: 11%.

Valuation Drivers (Ranked):

  1. Financial profile (e.g. Corporate EBITDA margin).
  2. Brand metrics (revenue quantum, growth, net margin).
  3. Being truly omnichannel.
  4. Technology and data competence.
  5. Scale efficiencies.
  6. Other.

Expected future number of FBA and DTC aggregators in 3 Years’ Time:

  • 10-40 aggregators: 61%.
  • < 10 aggregators: 22%.
  • >40 aggregators: 17%.

Upcoming Conference

Join us in New York on January 16th, 2024, for further insights into the eCommerce sector. Contact us for more details.

About our Sponsors:

Airwallex
Are you being double charged when collecting and sending in a different currency than your own? It’s called the Conversion Trap and if you’ve not heard about it, you need to read this. Airwallex joined us at the Fortia Conference on 14 September where Steph Koch, Chief of Staff at Airwallex EMEA outlined on a panel how the global financial platform is reducing unnecessary conversion fees within cross-border payments and adding much-needed global operational efficiency for eCommerce and FBA aggregators and businesses. Airwallexenables 100,000s businesses like Olsam, GoNorth, SHIEN and GOAT to collect, manage and send payments around the world. Check them out.
Carbon6
Carbon6 is the ecosystem for marketplace ecommerce, built to simplify success through our connected tools and expertise designed to increase efficiency, drive profitability, and scale with intelligence. We have a vision for what successful sellers need because we were built by industry leaders, SaaS veterans, and successful brand-owners. Explore our ecosystem and find out how our tools improve profit margins by over 20% for sellers, agencies, and aggregators!
Conjura
Conjura is a direct to consumer data solution that makes ecommerce analysis fast and easy. Once brands connect all of their data sources to the Conjura platform a strategic audit (called eAssessment) is created for partners working with the brands to maximise understanding of the strengths and weaknesses of the brands and surface relevant insights. In addition, the brands themselves get access to operational dashboards and recommended actions that help them make better decisions.
Getida
Getida is the global leader in Amazon FBA auditing and reimbursement solutions.An authorized Amazon Selling Partner and member of the Amazon Emerald Program, they’ve helped tens of thousands of sellers reimagine reimbursements as an additional revenue stream. Pair their auditing platform with their expert claims team and you’ve got a one-two combination that looks out foryour money and your Amazon business. With global availability in international marketplaces across North America, EMEA, and APAC, they help their sellers see 166% more in Amazon FBA recovery than those who don’t use Getida to file claims. Click here to learn more.
Kapoq 

Kapoq is an end-to-end software management solution specifically built for aggregators and brand builders with the challenge of managing multiple brands on Amazon. Kapoq empowers brand managers to scale through integrated data and analytics across six core modules, Advertising, Inventory, Accounting, Analytics, Customer Experience & Content. Having all key data points under one solution, it allows brand managers to identify gaps across critical data points, and take action with key insights to drive efficiency and brand performance. Click here to learn more.

MBM Commercial
MBM is an award-winning entrepreneurial law firm with offices in Edinburgh and London. We are specialists in corporate transactions with a particular focus in M&A, investment (equity and debt) work and supporting fast growing businesses on their growth journey. Our expertise expands across many sectors, including e-commerce, in which we advise aggregators, marketplaces and brands on their investments, commercial expansion and M&A. With a number of US attorneys in the firm, and founder of international law firm network World Tech Legal, we help businesses scale up and operate on a global basis.
SOLO

SOLO offers banks, lenders, and capital markets real-time access to standardized and verified financial statements of SMBs through direct integrations with financial institutions and billing platforms. The embedded platform employs accountant-trained algorithms to reconstruct SMB financial statements on a standardized ledger configured by the capital allocator. SOLO is designed to accelerate deal screening processes, streamline due diligence, and increase financing activities by fostering trust and transparency among stakeholders in capital markets.

Wayflyer 

Wayflyer provides fully unsecured and unrestricted funding for eCommerce and B2B wholesale brands. The entire process takes 72 hours from introduction to capital deployed. Wayflyer is backed by JPMorgan and Neuberger Berman, and has deployed close to $3B in capital to +2800 global brands. Wayflyer services brands generating between $250K and $200M in annual revenue. For brands or sellers generating +$10M in revenue, our line of credit solution offers an exposure limit worth 20% of your annual sales in a facility that sits junior to senior debt and charges no undrawn, maintenance, set-up, or due-diligence fees. If you’re interested in learning more, please don’t hesitate to contact our Enterprise Partner Manager, Sean Hanvey or click here.

 

 

Recent Blogs

Contact Us

Scroll to Top