The ecommerce landscape in 2026 looks nothing like it did five years ago.
Back then, brands could get by on Amazon with a decent listing, a modest ad budget, and maybe an agency helping out part-time. The playbook was straightforward. Show up, run some Sponsored Products campaigns, and let the marketplace do the rest.
That playbook is dead.
Today, winning on Amazon requires operational excellence across a dozen functions simultaneously. Advertising, logistics, content, pricing, inventory management, brand protection, marketplace compliance, data analytics. And that's just one channel. Add TikTok Shop, DTC, and emerging marketplaces, and the complexity multiplies.
Most brands weren't built to handle this complexity. They were built to create great products.
That gap between product excellence and commerce execution is where Neato operates. And it's why we just raised $25 million in growth capital from Advantage Capital to deepen our investment in commerce enablement — and expand beyond Amazon.
What Is a 2P Ecommerce Acceleration Partner?
Neato is not an agency. We don't advise brands on what to do and then send them an invoice regardless of the outcome.
We're an Amazon seller of record. We buy inventory directly from our brand partners. We take ownership of that inventory. We list it, price it, advertise it, fulfill it, and protect the brand on the platform.
This is what we call the 2P model. The brand is one party. We're the second party. We sit between the brand and the marketplace, operating as a true commerce enablement partner with skin in the game.
When the brand wins, we win. When a product sells, we both benefit. The incentives are aligned from day one.
This matters because the alternative models all have structural problems.
Working with a traditional agency means the brand still carries the execution burden. The agency gets paid whether sales go up or down.
Selling directly to Amazon through Vendor Central (the 1P model) often means margin compression, loss of pricing control, and unpredictable purchase orders.
Relying on third-party sellers (the 3P model) means losing control of brand presentation, pricing, and customer experience.
The 2P model solves all three problems. The brand gets certainty, simplicity, and brand elevation. We handle the rest.
The Growth Behind the Growth Capital
Let me be direct about why we pursued growth capital and what it signals.
Neato generated $53 million in revenue in 2025. We're targeting $100 million in 2026, representing 89% year-over-year growth. We have roughly 60 employees operating from our Las Vegas headquarters and our Escondido, California warehouse.
These numbers aren't the result of venture-backed spending. They're the result of a model that works.
Our brand partners are proof:
illy — the iconic Italian coffee brand saw +137% YoY growth in Classico Capsules on Amazon through our 2P model. We took over as seller of record, optimized their advertising, rebuilt their content, and delivered growth that their previous approach couldn't match.
Wiley Wallaby — went from losing approximately $1 million annually on FBA to becoming the number one licorice brand on Amazon with 17.8% market share and 87% year-over-year revenue growth.
Earth Animal — achieved 90%+ Buy Box ownership and a 33% increase in conversion rate after partnering with us.
Dot's Pretzels — became the number one pretzel on Amazon through our model before being acquired by Hershey.
These outcomes are what attracted Advantage Capital. As Philip Ruppel, Principal at Advantage Capital, put it: "The e-commerce enablement sector is at an inflection point. Capital is flowing toward operators that align their economics with brand success rather than extracting fees from complexity."
What the Growth Capital Enables
Investment into commerce enablement has never been stronger. Here's specifically what $25 million means for the brands we serve:
Deeper Investment in Current Brand Partners
More inventory capacity means we can buy deeper and respond faster when products trend. More advertising budget means we can lean into campaigns that are already working. More resources means better outcomes for every brand in our portfolio.
Expanded Operations
We're expanding our operations center in Las Vegas with integrated eCommerce prep capabilities. This deepens our infrastructure to serve more brands faster and closer to key logistics corridors.
A New Content Studio
We're developing a 2,500 square foot content studio designed to produce premium photography, video, and brand content for our partners. On Amazon, content quality directly impacts conversion rates. This investment raises the bar for every brand we serve.
Technology and AI
Our proprietary technology stack is a core competitive advantage. Growth capital accelerates our investment in our AI agent stack — AI-powered pricing optimization, inventory forecasting, advertising automation, and data analytics. These tools are what allow a team of 60 to outperform organizations many times our size.
Expansion Beyond Amazon
The 2P model works because of its fundamental structure: aligned incentives, operational ownership, and brand-first execution. That structure isn't limited to Amazon.
We're expanding into TikTok Shop and other marketplaces where our brands' customers are already shopping. We're building the infrastructure to be the commerce enablement partner for every channel — not just one.
People
We're hiring across every function. The growth capital lets us bring in the talent needed to serve more brands at the level our current partners expect.
The Bigger Picture
Commerce enablement is becoming a category. The market has seen Pattern Group go public at a $2.6 billion valuation. Spreetail has crossed $1 billion in GMV. Institutional capital is flowing into this space because the model is proving out.
But not all models are created equal. What sets Neato apart is the 2P structure. We're not a marketplace aggregator buying brands. We're not an agency selling retainers. We're an operating partner that buys inventory, becomes the seller of record, and delivers outcomes.
That distinction matters more as the space matures. Brands don't need more vendors. They need fewer partners who can actually operate.
What Comes Next
Spencer Jacobs and I started Neato because we believed brands deserved a better way to sell on Amazon. That belief hasn't changed. What's changed is the scale of the opportunity.
The $25 million in growth capital from Advantage Capital lets us pursue that opportunity faster and wider. It lets us serve more brands, expand to more channels, invest in better technology, and build the team that makes it all possible.
If you're a brand leader reading this and wondering whether there's a better model for your Amazon business, I'd welcome the conversation.
We're building the future of how brands sell online. And we're just getting started.
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