Amazon Comparison
Amazon Broker vs. Aggregator – The Crucial Difference
Overview
Few terms in the Amazon ecosystem are confused as often as broker and aggregator – and few models are more different. The difference is not gradual but fundamental: An Amazon broker like SPACEGOATS purchases your goods on B2B terms and resells them as Merchant of Record through its own Amazon accounts. Your brand stays 100% yours, you keep your IP, trademarks, and customer relationships, and you can end the partnership. An Amazon aggregator (e.g. Razor Group, SellerX, Berlin Brands Group, Thrasio) does the exact opposite: it buys your entire brand as an exit. You receive a one-time purchase sum and give up ownership, control, and all future profits in return. The broker is a distribution partner for a defined term; the aggregator is a buyer forever. Confusing the two means making a seven-figure mistake. This comparison makes the difference unmistakably clear.
Amazon Broker (Merchant of Record)
An Amazon broker acts as Merchant of Record (MoR): it purchases your products on agreed B2B terms and resells them on its own Amazon seller accounts. You sell B2B to the broker, the broker sells B2C to end customers. The brand still belongs 100% to you. The broker handles the entire operational side – compliance, VAT, FBA logistics, customer service, and advertising – and earns a margin or commission, not by acquiring your brand. SPACEGOATS is such a broker focused on established mid-market brands, with PAN-EU, UK, and US coverage and open-book reporting through the Galaxy platform.
Pros
- +Brand stays 100% yours – you keep IP, trademarks, Brand Registry, customer relationships, and the full upside of your brand's growth
- +Ongoing revenue share instead of a one-time payout – you keep earning on every future sale, not just a single sale price
- +Operational relief without losing control – the broker handles compliance, VAT, FBA, customer service, while you steer pricing, assortment, and brand direction
- +Reversible – you can end the partnership after the minimum term and move on with all your ASINs, reviews, and rankings
- +Internationalization without your own infrastructure – one contract covers multiple marketplaces without you building seller accounts or VAT registrations
Cons
- -No exit payout – if you actively want to sell your brand and leave, the broker model gives you no purchase sum; it is a distribution model, not a sale
- -Ongoing margin instead of one-time cash – the broker keeps a margin per sale; at very high volume this can add up to more over the years than a one-time aggregator deal
- -Dependency on the broker's execution quality – you rely on the partner's reliability, transparency, and SOPs, so choose an established partner with a track record
Amazon Aggregator (brand acquirer)
An Amazon aggregator buys successful Amazon brands outright. Well-known examples are Razor Group, SellerX, Berlin Brands Group, and (in the US) Thrasio. The business model: the aggregator acquires the brand, the entire assortment, the ASINs, often the supplier relationships too, and then continues and scales them under its own ownership. In return, the original founder receives a one-time purchase sum (often a multiple of annual profit, sometimes with an earn-out component). After the sale, the founder typically has no control and no profit share anymore. This is a classic M&A transaction – an exit, not a service relationship.
Pros
- +Immediate exit payout – you receive a one-time, often seven-figure purchase sum and realize the value of your brand at once
- +Full exit possible – ideal if you want to part with the brand, pursue other projects, or retire
- +No more operational risk after the sale – inventory risk, market shifts, and competition are no longer your problem
Cons
- -You lose the brand permanently – ownership, IP, trademarks, and customer relationships transfer entirely to the aggregator
- -No share in future growth – if the aggregator doubles the brand, you no longer benefit from it
- -Not reversible – a sale is final; you cannot simply take the brand back if you dislike how it develops
- -Valuation-dependent and selective – aggregators usually only buy brands with a certain profile (revenue, margin, FBA share, reviews); many brands don't fit the criteria at all
Comparison Table
| Criterion | Amazon Broker (Merchant of Record) | Amazon Aggregator (brand acquirer) |
|---|---|---|
| What happens to your brand | Stays 100% your property | Bought outright by the aggregator |
| Type of compensation | Ongoing revenue minus broker margin | One-time purchase sum (often a profit multiple) |
| Control over pricing & assortment | Stays with you (RRP + B2B terms) | Transfers entirely to the aggregator |
| Share in future growth | Yes – you keep earning on every sale | No – participation ends at the sale |
| Reversibility | Reversible after minimum term | Final – no way back |
| Operational responsibility | Broker handles operations as MoR | Aggregator takes over everything after purchase |
| Typical goal of the brand | Grow and keep the brand | Sell and exit |
| Examples | SPACEGOATS (broker / MoR) | Razor Group, SellerX, Berlin Brands Group, Thrasio |
Our Recommendation
Brokers and aggregators solve two completely different problems – the question is not 'which is better' but 'what do you actually want'. If you want to sell your brand, exit fully, and realize a one-time payout, an aggregator is the right counterpart – provided your brand fits its acquisition criteria. If, on the other hand, you want to keep your brand, keep earning from it, and participate in its future growth while offloading the operational Amazon complexity, a broker like SPACEGOATS is the right model. Most established mid-market brands and manufacturers want exactly the latter: they have built a brand over years, don't want to give it up, but want it sold professionally and internationally on Amazon without building their own seller team. For these companies the broker model is structurally right and the aggregator model structurally wrong. The most expensive mistake is to confuse the two – approaching an aggregator when you don't actually want to sell the brand, or equating a broker with an acquirer and ruling out the model for that reason.
Frequently Asked Questions
Is SPACEGOATS an aggregator?
No. SPACEGOATS is an Amazon broker and Merchant of Record, not an aggregator. SPACEGOATS does not buy brands. Instead, SPACEGOATS purchases your goods on B2B terms and resells them through its own Amazon accounts – your brand stays 100% yours. Aggregators like Razor Group, SellerX, or Berlin Brands Group, by contrast, acquire the entire brand as an exit.
Do I get a purchase sum for my brand in the broker model?
No, and that is the central difference. The broker does not buy your brand – it only purchases your goods and resells them. You do not receive a one-time purchase sum but ongoing revenue from sales (minus the broker margin). If you want a one-time payout and a full exit, you need an aggregator, not a broker.
When is an aggregator the better choice than a broker?
An aggregator is the better choice if you want to actively sell your brand and exit fully – for example to realize an exit, pursue new projects, or retire. The prerequisite is that your brand fits the aggregator's acquisition criteria (typically certain revenue, margin, and FBA thresholds). If, however, you want to keep the brand and keep earning from it, a broker is the right model.
Do I lose control over my brand in the broker model?
No. In the broker model you keep brand ownership, Brand Registry, pricing authority (via RRP and B2B terms), and control over your assortment. The broker handles operations, not ownership. This is precisely the contrast to the aggregator, where all control transfers with the sale.
Can a broker relationship later lead to an aggregator sale?
Yes, the two are not mutually exclusive. Many brands first use a broker to build their Amazon presence professionally and internationally and grow revenue – and only years later decide whether to sell. A growing brand professionally run through a broker is usually worth more for a later aggregator sale. So the broker keeps your exit option open rather than closing it.