Grove Launches New Division to Compete With Amazon Aggregators

The CBD and wellness company Grove, Inc. says it has launched a new division designed to acquire Amazon and eCommerce businesses.

Called Upexi, this offshoot is designed to “take direct aim at the Amazon Aggregation market,” the company said in a news release Thursday (Oct. 14), with plans to “enter the market as a desirable suitor to which prospective business owners may sell.”

Upexi will let potential sellers access Grove’s ad technology, digital marketing expertise and direct partnership with a team of expert Amazon pay-per-click buyers.

“We’ve seen exponential growth in our hemp business over the past 2 years and continue to grow. It’s now afforded us the ability to expand into other verticals,” said Allan Marshall, Grove’s CEO. “Amazon aggregation has been a goal for us since the beginning. We’re hoping to add 10-plus Amazon and eCommerce businesses to the portfolio over the next year, and another 10 the following.”

Grove came to prominence in the CBD and cannabis sector, but has since expanded into other spaces. For example, the firm recently acquired Vitamedica, an online diet supplement company with a fast-growing presence in eCommerce and on Amazon.

Using its own team of digital marketers, Grove says it is now pursuing additional companies in the health, wellness, beauty and pet care markets that can further its growth.

Grove says Amazon aggregators have raised close to $10 billion, with the Amazon-native brand Anker going public and another, Thrasio, raising more than $2 billion.

Read more: Amazon Aggregator Thrasio Cancels SPAC Plans Amid Leadership Shakeup

Thrasio, a consumer goods company working on omnichannel commerce and an aggregator of third-party Amazon sellers, had been considering going public via a merger with a special-purpose acquisition company (SPAC).

But as PYMNTS reported last week, the company has since backed away from that plan as it deals with changes in leadership. Thrasio will still explore that option, along with going public through an initial public offering.