AMZSCALE Completes Double-Digit Million Series A Round And Announces Investment Platform

Elevat3 Capital, a young venture capital firm that focuses on acquiring and operating Amazon third-party businesses, invested a double-digit million sum in AMZSCALE. AMZSCALE is a service Done4You (D4Y) platform for investors who want to build and scale a profitable Amazon brand, and it recently announced its plans to launch AMZSCALE INVEST at the beginning of 2022.

AMZSCALE INVEST is a platform that enables private investors to profit from the eCommerce boom through security tokens that are based on participation certificates. These certificates are a mixture of shares and bonds that entitle holders to profit-related interest and repayment, but don’t afford voting rights. The launch of this platform, which is a first of its kind, allows investors to conveniently enter the ever-growing global e-commerce market, which has seen annual growth rates of 24 percent.

Daniel Vogler and Maurice Glissmann laid the foundation for AMZSCALE in 2016, and they have since been helping entrepreneurs and investors build Amazon FBA brands. The investor comes up with the capital, and AMZSCALE takes care of execution. The company currently employs more than 100 people, including an expert team that handles sourcing from the People’s Republic of China.

AMZSCALE aims to invest fresh capital in developing and expanding its sales infrastructure. The company will also use the capital for internationalization as it expands into the UK and USA and for financing the goods for its customers.

“With Elevat3’s funding and network, we’re well-positioned to build the world’s leading platform for any and all needs of any and all brands – be it identifying qualified products to add to their catalog, matching them with vetted suppliers, supporting with growth-capital or exiting to a larger buyer,” said Vogler.

What makes AMZSCALE appealing to Elevat3

eCommerce is growing, and Amazon is leading the pack. Amazon increased square footage across its fulfillment and logistics network by 50 percent around the world during 2020, according to the 2021 Small Business Empowerment Report from Amazon.

The eCommerce giant also added 450,000 employees to its operations team for fulfillment and transportation to provide support for its selling partners. Amazon’s keen interest in FBA isn’t surprising, however, given that it lowers the costs for sellers by 30 percent when compared to other shipping carriers.

Amazon gives sellers a great opportunity to leverage the potential of electronic commerce. However, the leg work can feel overwhelming for someone new to the game. Sellers need to create a product portfolio, find suppliers, market the product, and a lot more. This is where AMZSCALE offers value.

AMZSCALE sells success to entrepreneurs

AMZSCALE brings a unique combination of services for entrepreneurs. The agency takes care of the entire process, including set up, sourcing, selling, and more.

In addition to executing the business processes for clients, AMZSCALE helps clients instantly scale to international marketplaces across the EU by providing SaaS (Selling-as-a-service), without them having to invest time in or incur costs for VAT registration.

Scaling also demands more capital. This is another area where AMZSCALE helps its clients by providing CaaS (Capital-as-a-Service). Entrepreneurs can access capital for growth or goods, which removes another potential bottleneck for investors. AMZSCALE’s innovative services allow entrepreneurs a labor-light way to create and scale an Amazon FBA brand.

“Our services Capital-as-a-Service (CaaS) and Selling-as-a-Service (SaaS) were logical next steps, as they solve two of the largest problems faced in the growth of any eCommerce brand – 1) easy and fast access to growth capital for ramping up production of high-demand products and 2) the VAT infrastructure needed to expand to all of Amazon’s nine European marketplaces,” Vogler explained.

AMZSCALE also has an internal brand-building department. The department focuses on developing brands at various stages of the development cycle or acquiring them for selling to the agency’s larger clients or aggregators.

With AMZSCALE INVEST, the company is looking to create a platform that benefits private investors as well as eCommerce brands. Investors will be able to profit by buying security tokens of growing brands, and eCommerce brands will be able to raise capital through tokenization.

Covid, Christmas, and eCommerce

Christmas and Black Friday are two of the busiest days for eCommerce businesses. The Christmas season in 2020 was a particularly good year for eCommerce businesses. The lockdown rules compelled shoppers to shop online. Third-party seller revenues for Amazon surged by 60 percent, making Christmas 2020 the biggest holiday season ever.

Consumers are still reluctant to enter crowded brick-and-mortar stores. Online stores will see a similar demand this Christmas season as well, but they will need to prepare for a few challenges, according to Vogler.

“However, this year’s holiday season will feel the impact of global supply chain disruptions caused by Covid. There will be many online shops running out of inventory early in the season, and logistics cost spikes of up to 300% for shipping containers will eventually result in price increases for end consumers.”

The coming season will be among the best ones that eCommerce business owners have witnessed so far, provided they arm themselves with the right strategies to tackle the challenges.