Amazon aggregators Branded and Heyday plan to merge as once-booming industry continues to shrink

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The Amazon aggregator space, which faltered after venture capital money dried up and consumers returned to stores, continues to consolidate.

The Amazon aggregator space has faltered since venture capital money dried up and companies struggled to profitably operate the brands they acquired.An Amazon contract worker pulls a cart of packages for delivery in New York, US, on Monday, April 22, 2024.aggregators Branded and Heyday plan to merge, CNBC has learned, as a segment of the e-commerce industry that boomed during the Covid era continues to consolidate.

The new name will be officially rolled out in the coming days, and the combined companies are expected to generate annual revenue of $400 million, Rymarz wrote. "The merger is the culmination of an effort that began well over a year ago to find a partner who could help advance our mission, accelerate progress toward our goals and strengthen our balance sheet, as we've spoken about in the past," Rymarz said. "Branded is the perfect partner."

In connection with the merger, Heyday is expected to conduct a massive round of layoffs that could result in up to 70% of employees losing their jobs, according to a person familiar with the matter who asked not to be named because the cuts haven't been announced. Branded will absorb Heyday's technology team, and several brands, the person said, including skincare line ZitSticka and Boka, which makes fluoride-free toothpaste and other dental care products.

 

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