thrasio-business-model Business Model In A Nutshell follows an acquisition entrepreneurship template, by surfing the Amazon third-party ecosystem. The company acquires Amazon sellers’ businesses and it scales them up. It follows a fast acquisition template to offer an exit to Amazon sellers. also follows a multi-brand and multi-product strategy, focused on consumer-brands.

Understanding Amazon third-party business

Of the products sold on Amazon, a majority of those products are the third-party sellers. While Amazon also has its own labels, the third-party ecosystem is still strong.

Amazon runs a platform business model as a core model with several business units within. Some units, like Prime and the Advertising business, are highly tied to the e-commerce platform. For instance, Prime helps Amazon reward repeat customers, thus enhancing its platform business. Other units, like AWS, helped improve Amazon’s tech infrastructure.

The Amazon business model moves around a few key segments. The consumer e-commerce platform is the core part of the business.

And it is divided into first-party (Amazon’s own products) and third-party (independent sellers building their stores on top of Amazon).

From there, it starts the story of, a company almost worth a billion, thanks to a business completely built upon Amazon third-party sellers’ ecosystem.

Leveraging the third-party Amazon business


In an interview, Ken Kubec from the team highlighted the opportunity that would help the company get started. It was back in 2018 when launching a business on Amazon had become harder, compared to just a few years before.

In addition, Amazon sellers, in most cases would hit a ceiling with their businesses when approaching the $3-5 million in revenues. In order for them to grow, it required capital, usually coming from loans or personal debt.

That created the opportunity for who offered an exit strategy to Amazon sellers. Once the Amazon third-party seller has been acquired by the company uses its scale, capitals, and expertise (by 2019 the company had acquired more than 25 Amazon sellers’ businesses) to further grow the operations.

Indeed, as launches new products it can use the brand equity from those sellers (the reviews rating, ranking) and the branding of that business on Amazon to scale up.

The process is fast, and it gives within a few weeks the option for Amazon sellers to exit their business:

The workflow of a business that goes through that acquisition process (source:

How does make money? founder, Carlos Cashman explained that the company buys leading products, usually category-leading products, which become the basis of the acquisition process. As those products are solid and have decent margins,

The company that raised over 250 million dollars and it raised also debt to finance its operations. According to Cashman, by 2020, the company was low to mid-nine figures revenues range.

Therefore, follows an acquisition entrepreneurship path, where the company acts both as an entrepreneur, and a venture capital.

Acquisition Entrepreneurship (AE) starts by buying an existing business instead of starting one from scratch. Therefore, an acquisition entrepreneur masters the process of acquiring existing businesses to shorten the path to success. In short, the acquisition entrepreneur thinks like an investor in the process of buying an existing business and acts as a CEO once the deal has been closed and he needs to run the company to bring it to the next level.

What makes up a good Amazon business for The R Cubed Model

As Ken Kubec from the team highlighted, the company starts with a broad research approach, and it starts narrowing it down to what they call the R Cubed (Reviews, Rating and Rank).

And from there, they start asking questions with a drill down approach, starting from the reviews:

Do they have reviews that should establish them as a leadership position?

If so, it goes a level down and look at product/rating:

Do they have their rating, the product quality to back up and sustain their position?

And lastly, about ranking:

...and then rank: are they ranking organically on high keyword volume? looks at what they call “simple everyday hard-good objects.”

The buying process is primarily focused on businesses which revenues span from 1-30 million dollars, and that are private labels. also looks for Amazon businesses with a lower amount of SKUs (fewer products but more sales). Indeed, for the most valuable businesses are those that hit over a million in sales with the fewer SKUs.

How does the valuation process work?

The valuation process and the modeling part is pretty straightforward. starts from the Amazon Seller’s last twelve months carried profits, to that it adds back the Amazon seller’s salary, to get the so-called seller’s discretionary earnings.

On that number, once a multiple has been agreed and negotiated, the business gets sold. Usually on the seller’s discretionary earnings is applied a 2-4 valuation multiplier.

In short, imagining a business making a million dollar per year, at 20% profit margin, this means the business makes up $200K in net profits. Assuming the Amazon seller pays himself a $50K salary, if we add it back, we get a seller’s discretionary earnings of $250K.

From there the business can be valued 2-4x its discretionary earnings, therefore in the range of $500K to one million dollars.

Distribution Strategy:

  • Amazon Marketplace: primarily operates within the Amazon marketplace, leveraging Amazon’s vast customer base and infrastructure. It identifies potential acquisition targets among third-party sellers on the platform.
  • Acquisition Process: identifies Amazon seller businesses that meet its criteria, such as revenue range, product category leadership, and brand equity. It offers these sellers an exit strategy, allowing them to sell their businesses quickly.
  • Fast Exit Option:’s acquisition process is designed to be fast, providing Amazon sellers with an efficient way to exit their businesses. This approach is appealing to sellers who may have hit growth ceilings or seek liquidity.
  • Multi-Brand and Multi-Product Strategy: follows a multi-brand and multi-product strategy within the consumer brands niche. By acquiring multiple businesses and products, it diversifies its portfolio and scales operations across various categories.
  • Brand Equity Utilization: leverages the brand equity of the acquired businesses, including reviews, ratings, and rankings on Amazon, to launch new products and expand within the same category or niche.
  • Scale and Capital: uses its scale, available capital (including raised funds and debt financing), and expertise to grow the operations of acquired Amazon businesses.

Marketing Strategy:

  • Value Proposition: emphasizes its value proposition to Amazon sellers, offering them an exit strategy and the opportunity to monetize their businesses. The speed and efficiency of the exit process are highlighted.
  • Amazon Seller Outreach: actively reaches out to Amazon sellers who meet its criteria for acquisition. This outreach involves communication about the benefits of selling their businesses to
  • Brand Equity Utilization: The company showcases its ability to leverage the brand equity of acquired businesses to launch new products and drive growth. This demonstrates the potential for sellers to see their brands continue to thrive under’s ownership.
  • Financial Considerations: communicates the financial aspects of the acquisition process, including the valuation method based on seller discretionary earnings and the potential range of business values.
  • Transparent Process: Transparency in the acquisition process is a key marketing point, reassuring sellers that the process will be straightforward and efficient.
  • Investment in Scale:’s ability to invest in scaling the acquired businesses is highlighted, providing sellers with confidence that their brands will continue to grow.

Key takeaway

  •’s business model surfs Amazon’s third-party seller ecosystem. Started in 2018, with the acquisition of a few sellers’ brands, it created a template for acquisition entrepreneurship on top of the Amazon marketplace.
  • acquisition process starts by looking at businesses in the range of $1-30 million in revenues and from there it looks at the R Cubed (reviews, ratings, and rankings) to assess whether the product is a leader in its category and if it has enough brand equity.
  • From there the acquisition process is fast, giving Amazon’s sellers the option to sell their business.
  • acts as an investor in the process of sourcing and acquiring Amazon businesses. And once acquired it runs them.

Key highlights of’s business model:

  • Business Overview: is an acquisition entrepreneurship company that focuses on acquiring and scaling businesses within the Amazon third-party seller ecosystem. It targets Amazon sellers looking for an exit and aims to scale their businesses.
  • Amazon Third-Party Ecosystem: Amazon’s third-party seller ecosystem is strong, with many independent sellers building their stores on the platform alongside Amazon’s own products.
  •’s Opportunity: saw an opportunity in the Amazon ecosystem in 2018, as launching and growing a business on Amazon became more challenging. Many Amazon sellers hit a revenue ceiling, and offered an exit strategy.
  • Acquisition and Scaling: acquires Amazon third-party seller businesses and uses its resources, expertise, and scale to grow those operations further. It leverages the brand equity, reviews, and rankings of the acquired businesses to launch new products.
  • Fast Exit Strategy:’s acquisition process is fast, offering Amazon sellers an option to exit their businesses within a few weeks.
  • Revenue Generation: generates revenue by acquiring Amazon seller businesses and scaling their operations. It acquires products with decent margins and uses its scale to further grow these businesses.
  • Valuation and Funding: raised over $250 million in funding and also secured debt financing. By 2020, the company’s revenues were in the low to mid-nine figures range.
  • Acquisition Entrepreneurship: follows an acquisition entrepreneurship approach, buying existing businesses instead of starting from scratch. It thinks like an investor during the acquisition process and acts as a CEO post-acquisition.
  • R Cubed Model:’s acquisition process starts with a broad research approach and narrows down to the R Cubed model (Reviews, Rating, and Rank). This model helps assess whether a product is a leader in its category and has brand equity.
  • Valuation Process: values businesses based on their last twelve months’ carried profits. It adds back the seller’s salary to calculate the seller’s discretionary earnings. A valuation multiplier (2-4x) is then applied to the discretionary earnings to determine the business’s value.
  • Focus and Criteria: targets private label Amazon businesses with revenues ranging from $1-30 million. It prefers businesses with a lower number of SKUs that hit over a million in sales with fewer products.
Value offers a compelling value proposition for its users, including: – Acquisition of Amazon FBA Brands: Providing an avenue for Amazon FBA (Fulfillment by Amazon) brand owners to sell their businesses and assets. – Streamlined Operations: Streamlining and optimizing the operations of acquired brands to enhance profitability. – Expertise in E-commerce: Leveraging expertise in e-commerce, marketing, and Amazon marketplace to boost brand performance. – Brand Growth: Focusing on brand growth and expansion through enhanced marketing and product development. – Efficient Supply Chain: Utilizing efficient supply chain management to reduce costs and improve product availability. – Access to Capital: Offering access to capital for brand acquisitions and scaling efforts. – Exit Strategy: Providing brand owners with a viable exit strategy to realize the value of their businesses. – Risk Mitigation: Mitigating risks associated with running an e-commerce business on platforms like Amazon. – Professional Team: Offering the support of a professional team experienced in e-commerce and brand management.
Core Products/’s core products and services encompass: – Brand Acquisition: Acquiring established Amazon FBA brands and their assets. – Brand Optimization: Streamlining and optimizing brand operations, including logistics, marketing, and product listings. – E-commerce Expertise: Leveraging e-commerce expertise to enhance brand performance on Amazon and other platforms. – Product Development: Developing new products or improving existing ones within acquired brands. – Supply Chain Management: Efficiently managing the supply chain to reduce costs and improve inventory management. – Marketing and Advertising: Implementing marketing and advertising strategies to increase brand visibility and sales. – Financial Support: Providing capital and financial resources for brand acquisitions and growth initiatives. – Exit Strategy Execution: Facilitating the sale of brands to potential buyers or investors as part of the exit strategy. – Customer Service: Offering customer support to maintain positive customer experiences. – Market Research: Conducting market research to identify opportunities and trends in the e-commerce space.
Customer serves a range of customer segments, including: – Amazon FBA Sellers: Individuals or businesses looking to sell their Amazon FBA brands and assets. – E-commerce Entrepreneurs: Entrepreneurs interested in starting or scaling e-commerce businesses on Amazon. – Investors: Investors seeking opportunities to acquire and grow e-commerce brands with established track records. – Brand Owners: Owners of established brands looking for an exit strategy or assistance in brand optimization. – Manufacturers: Manufacturers of consumer goods interested in partnering with to enter the e-commerce space. – Amazon Sellers: Existing Amazon sellers looking for support and resources to enhance their brand performance. – E-commerce Professionals: Professionals with expertise in e-commerce interested in collaborating with – Private Equity Firms: Private equity firms exploring investments in the e-commerce sector. – Consumer Brands: Established consumer brands looking to expand their e-commerce presence. – Online Retailers: Online retailers seeking opportunities to optimize their e-commerce operations.
Revenue generates revenue through various revenue streams: – Brand Acquisitions: Earning revenue through the acquisition of Amazon FBA brands and assets. – Brand Growth: Increasing revenue by optimizing and growing the acquired brands. – Sales on E-commerce Platforms: Generating income through the sale of products on Amazon and other e-commerce platforms. – Product Development and Sales: Developing and selling new or improved products within acquired brands. – Supply Chain Efficiency: Reducing costs and improving supply chain efficiency, leading to higher profitability. – Marketing and Advertising Services: Providing marketing and advertising services to boost brand sales. – Financial Support: Earning returns on investments made in brand acquisitions and growth initiatives. – Exit Strategy Execution Fees: Charging fees for facilitating the sale of brands to potential buyers or investors. – Partnerships and Collaborations: Exploring partnerships and collaborations with manufacturers and suppliers. – Market Research Insights: Offering market research insights to interested parties for a fee.
Distribution employs a strategic distribution strategy to reach users and promote its services: – Brand Acquisition: Actively seeking and negotiating brand acquisition deals with Amazon FBA sellers. – E-commerce Marketplace Presence: Maintaining a presence on e-commerce marketplaces like Amazon and others. – Online Advertising: Utilizing online advertising channels to promote its brand acquisition services. – Networking: Building relationships with Amazon FBA sellers, investors, and industry professionals. – Educational Resources: Providing educational resources and webinars on brand selling and e-commerce. – Professional Team: Leveraging the expertise and experience of its professional team in e-commerce and brand management. – Data Analytics: Using data analytics to identify potential brands for acquisition and growth opportunities. – Strategic Alliances: Forming strategic alliances with manufacturers and suppliers for product development. – Exit Strategy Execution: Facilitating the sale of brands to potential buyers or investors through various channels. – Customer Testimonials: Showcasing success stories and testimonials from brand owners who have benefited from’s services.

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