Amazon aggregator SellerX have announced they will move to a leaner organizational structure to strengthen its core business and drive profitable expansion by concentrating on its best-performing brands and products. The result of this will be the loss of around 20% of their global headcount (from around 800 employees) and cutting the brands from 67 brands (around 40,000 products) to just 19.
SellerX’s planned realignment is designed to drive top-line growth, improve operational performance, and increase margins. This has been the Achilles heel of many Amazon aggregators – in the boom days they attracted billions in investment, but rather than managing to scale (often with the simple aim of listing on more Amazon international country sites for a rapid return), along with the economies of scale of sourcing and inhouse expertise of Amazon optimisation, many aggregators ran into trouble.
As SellerX transitions to a leaner and more efficient organisation, the company will further focus its structure around high-potential categories – such as Home & Living, Art Supplies, Beauty & Healthcare, Mobile Accessories- brands and profitable, growing distribution channels, to deliver meaningful products and experiences to consumers.
CEO Olivier Van Calster explains that in the past brands were acquired unsustainably and incoherently and this wasn’t a failing of SellerX only – in the gold rush to acquire Amazon brands, just about every Amazon aggregator were scooping up just about any business going and paying top dollar for them.
Now SellerX will retrench and focus on brands that have customer actively shopping and developing and the others will be discarded. They will also widen their goals from simply selling on Amazon to selling on a broad range of channels in Europe and the US.
After a successful H2 2024, we’re optimistic about the future and determined to position SellerX for long-term success. With a refined business model, a leaner structure, and a solid financial foundation, we will be well-prepared to pursue long-term opportunities and advance towards our goal of becoming a leading global consumer e-commerce player.
– Olivier Van Calster, CEO, SellerX
