Forum Brands, a technology company that helps entrepreneurs scale their businesses, recently announced that it has raised $27 million from venture partners Norwest Venture Partners and SV Angel. The company plans to use the funds to grow its marketplace for brand-name consumer goods. Its platform helps brands find, acquire and manage third-party Fulfillment by Amazon (FBA) businesses, allowing them to scale faster.
Investment from Norwest Venture Partners
Norwest Venture Partners is a 60 year old venture capital firm that manages nearly five billion dollars in capital. The fund invests in a variety of industries. It targets early and late stage investments, typically investing in companies with strong sales, technology, and management teams. Usually, the firm invests between ten and fifty million dollars.
Norwest has a long track record of working with companies that have a vision. They have invested in companies such as Kendra Scott, Swiggy, and JOLYN. In addition to their growth equity investments, they have also provided capital to seed-stage companies.
Norwest has a focus on enterprise and consumer products. Their investment portfolio includes more than 200 companies. Several of these are women-founded businesses.
In May 2014, Norwest Venture Partners formed its latest fund. This $3 billion fund is the largest to date. With fresh capital, Norwest will be able to invest in research, innovation, and global outreach.
Scaling challenges for founders of third-party Fulfillment by Amazon (FBA) businesses
In the past few years, Amazon has made several changes to its platform that can present some challenges to third-party Fulfillment by Amazon (FBA) businesses. These changes include higher fees, increased shipping costs, and changes to FBA’s fulfillment process. Nevertheless, Amazon remains an attractive option for e-commerce businesses.
While FBA is still a worthwhile opportunity, it’s important to note that it can also bring its fair share of problems. For instance, the decision to shift to self-shipping can leave you with less access to active users, and there’s no guarantee you’ll meet your revenue goals.
Another consideration is how much warehouse space you need. As an Amazon seller, you can choose to have your goods stored in a FBA warehouse, or you can house them in your own distribution center. Regardless of the location, you’ll have to consider the cost of rent and real estate fees.
As an e-commerce business owner, you’re probably aware of the benefits of selling on the Amazon Marketplace. You can take advantage of Amazon’s extensive distribution network, which includes a multitude of fulfillment centers across the country Techlogicagte.
Platform to identify and acquire third-party FBA businesses
Buying an Amazon FBA business is a lucrative cash-flowing opportunity. However, it is important to understand what it takes to be a successful acquirer. It also helps to know what to avoid.
The first step in acquiring an FBA business is to identify a product with proven profit potential. You want to ensure that your chosen product has a track record of consistent sales and search volume. Another key consideration is whether it is in good standing with Amazon Marketbusinessfacts.
Aside from researching a product, you should also consider a few other factors. For instance, you should include a mailing list in your purchase contract, along with any social media accounts. Also, you should be prepared to enter into contracts that include a period of due diligence and an exit window.
The best acquirers are those that focus on private-label everyday products, as opposed to grocery or tech goods. They also prefer brands with strong ratings and reviews, and preferably category-leading brands Businessworldfacts.