4 ms·

I wonder what sort of due diligence is done on the business practices of these small brands. There are a LOT of scams on Amazon and to succeed in the marketplac

by habosa 6y ago

I wonder what sort of due diligence is done on the business practices of these small brands. There are a LOT of scams on Amazon and to succeed in the marketplace many brands have to be willing to do some shady things (buying reviews, swapping listings, etc). At a small scale these scams are probably not worth it for law enforcement to worry about. But if a hundred brands are rolled up into a conglomerate, there's going to be a lot of scams under one roof.

moltar 6y ago
On a recent Thrasio podcast they explained that they look at all financials. Which also includes purchasing third party services to ensure that businesses were not buying anything illegal or against ToS.
pessimizer 6y ago
The benefit of rolling them up is to get away with all of this small-time fraud at scale (which has also indirectly been Amazon's model in general over the past half-decade through collecting rent from them.) The PR is that these funds are trying to be Unilever, but the reality is that they're trying to buy up a bunch of shady Amazon-only companies that are very profitable and consolidate their accounting, logistics, and marketing departments.