Comparison Series
Neato vs Aggregators
Aggregators buy your company. A 2P operator buys your inventory. Two fundamentally different answers to the same growth question.
What actually changes hands
Aggregators: they buy the company
Aggregators acquire the entire business: IP, accounts, and equity. Founders exit operationally and receive cash plus earnout payments, and the aggregator owns the brand after the transaction. Portfolio-level EBITDA drives decisions, and if the aggregator fails, the brand typically goes down with the parent.
Neato: we buy the inventory
A 2P operator purchases wholesale inventory only. The founder keeps ownership, involvement, and decision authority. Neato earns on the wholesale-to-retail spread per cycle, aligned on per-brand inventory turns, with operators embedded inside the brand team. If anything goes wrong, the founder's assets remain intact.
Where the aggregator category stands in 2026
The aggregator category is effectively closed to net-new brand acquisitions at meaningful scale. Of the roughly 15 to 20 major players, none operate at peak capacity. Thrasio emerged from Chapter 11 in June 2024 with its portfolio cut from more than 200 brands to about 40. Perch sold to Razor Group in March 2024. Heyday merged into Essor in September 2024. SellerX, Berlin Brands Group, Boosted, Acquco, and OpenStore have all restructured or ceased acquisitions. The original model's math did not hold up, even though the 2020 to 2021 assumptions were reasonable at the time.
A cautionary case study
Ben Leonard built Beast Gear into a seven-figure brand and sold it to Thrasio in October 2019, then watched revenue decline materially. He repurchased the brand from Thrasio in 2024 during its restructuring. Aggregator ownership removes founder control over brand outcomes, and buy-backs are only possible with capital, timing, and a distressed seller.
Five questions that decide it
1. Who owns the brand afterward?
Aggregator: the aggregator owns the brand after the transaction.
Neato: ownership stays with the founder. Neato explicitly does not acquire brands.
2. What do the economics optimize for?
Aggregator: portfolio-level EBITDA and an eventual exit multiple, funded by equity and debt-financed M and A.
Neato: per-brand inventory turns, earning the wholesale-to-retail spread each cycle from working capital.
3. What happens if the operator fails?
Aggregator: failure typically damages or takes down the brand, because the brand is owned by the parent.
Neato: the founder's assets remain intact, and switching operators takes 60 to 90 days.
4. What happens in a restructuring?
Aggregator: portfolios get restructured, merged, or sold, and brands move with them.
Neato: 2P partnerships are independent contracts that survive on their own terms.
5. Who makes the decisions?
Aggregator: decisions are centralized in the aggregator's team after the sale.
Neato: operators embed within the brand team and collaborate with the founder, who stays in the commercial loop.
Side by side
Dimension
Aggregator
Neato
What changes hands
Company equity and IP
Wholesale inventory only
Ownership afterward
Aggregator owns the brand
Founder owns the brand
Founder's role
Earnout period, then exit
Continued ownership and involvement
Earnings model
Portfolio EBITDA plus exit multiple
Wholesale-to-retail spread per cycle
Failure scenario
Brand typically lost with the parent
Founder retains all assets
Reversibility
Buy-back only in distress, rarely possible
Switch operators in 60 to 90 days
2026 category status
Largely closed to new acquisitions
Active and expanding
Best-fit founder
Ready to exit operational control
Wants growth while keeping ownership
Which path fits you
The aggregator path suits founders who
Seek liquidity and an operational exit. Accept brand identity evolution after the sale. Do not need long-term asset retention. Are comfortable with earnout structures.
The 2P operator path suits founders who
Want to retain brand ownership. Seek operational scaling without equity dilution. Prefer inventory risk-sharing over selling the company. Remain engaged in strategic decisions.
Frequently asked questions
Are Amazon aggregators dead?
The category is effectively closed to meaningful net-new acquisitions. The original model's math did not hold up, even though the 2020 to 2021 assumptions seemed reasonable at the time.
Will Neato acquire my brand?
No. Neato explicitly does not acquire brands. It only purchases wholesale inventory, and the founder keeps full ownership.
If I sold to an aggregator, can I buy my brand back?
Rarely. The path requires capital, timing, and a distressed seller, as Ben Leonard's Beast Gear repurchase from Thrasio demonstrated.
Choose the operator that fits the model your business actually needs. Spencer Jacobs, President, Neato.
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