Our service capabilities and decades of experience will help you produce greener, more attractive boxes for less money when Packaging for Amazon and others.
Since the dawn of capitalism, it has been common for companies to buy other companies. That is the way business worked and grew. In most cases, we consumers ended up being served by bigger and better companies, creating new and improved products for us.
The next natural progression was venture capital firms connecting investors with entrepreneurs in need of funding. In many cases an investor can invest in several companies with no real connection between the individual companies. Each one is a separate investment, and other than an introduction or perhaps a shared professional resource, they are all evaluated separately and function independently.
Today it is more about investors buying multiple brands that can potentially work and market together to complement each other. The end goal of course is synergy, producing accelerated and greater growth.
What is an Aggregator?
Simply put an aggregator is a collector. They collect and combine things. In this case it’s branded businesses that can be stronger together than they can be individually. Even when a merger or acquisition makes sense and is obvious, the companies involved may not be in a financial or other position to purchase each other and do what an aggregator can potentially do for them.
For example, an Amazon Aggregator is the collection of independent businesses selling related products who have one important thing in common: they all sell their products using Amazon for distribution and DTC fulfillment.
What role can a packaging supplier play in this process?
It can vary greatly, depending on how the companies are going to be marketed, together or separately. Will a new combined brand be created, or will each company maintain its own logo and look? No matter how these companies go to market, a packaging company like Salazar Packaging may provide many different services, including:
- Creating and maintaining consistent packaging performance standards.
- Managing and aiding in inventory and logistics.
- Establishing uniformity in terms of esthetics, for example corrugated board grade as well as ink formulations and colors.
- Establishing sustainability goals and holding board manufacturers accountable.
- Reducing packaging cost by combining items and orders.
- Reducing shipping costs with a broader network of manufacturing plants.
Will packaging consolidation result in big savings?
There is very likely some cost reduction potential, but probably not as much as you might think. If volume always produced proportional savings, mega shippers like Amazon, Walmart, and Target would be getting free boxes.
However, an experienced packaging partner can help maximize cost savings by size consolidations, stock and release programs, and other ways to help you manage and satisfy your packaging needs.
Whether you are an aggregator or an aggregated, talk to us. We are confident our national service capabilities and decades of experience will help you produce greener, more attractive boxes for less money.
Call us at 630-551-1700 or contact us for a no cost, no obligation discussion about your packaging requirements.