Who's disrupting Thrasio?

February 09, 2021

by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Florida, USA

Anyone know of any players out there competing against Thrasio for market share? It looks like Thrasio has a significant pool of committed capital and are generating substantial traction in the FBA supply chain logistics market.

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Reply by a searcher
from Emory University in Atlanta, GA, USA

I have a list of another 38 firms to add to Casey's that are acquiring FBA businesses and talk to new ones every week. The market has changed substantially since Thrasio was able to acquire many of their brands. We now see multiples of 4-6x on competitive listings due to the amount of new capital and limited deal flow compared to 2-3x for FBA businesses a few years ago.

The trend I see coming next is niche specific groups that are focused on specific sectors or audiences and are only acquiring brands in those categories. Strong supply chain and marketing excellence will allow some groups to quickly grow brands while other firms without operational experience struggle to compete with the wave of Chinese seller and increased competition on and off of Amazon.

Reply by a searcher
from University of Exeter in Arlington, VA, USA

There are a lot of different ways to approach Amazon - it's not just FBA. My Fund sources all sorts of Amazon sellers, but we want to partner with them by providing them first-class technical assistance (from AWS). There are buyers of FBA, merchant-fulfilled, Amazon software businesses, marketing agencies - it's a whole universe. Thras.io has positioned itself well in the FBA space, in fact better than anyone else. It's obvious that their balance sheet is upside down though, because (from their public announcements alone) more debt than equity. The debt funds they've borrowed from don't charge very high rates, so they're probably fine!

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