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Reseller Pharmapacks (Packable) Closing Operations
News | August 26, 2022
Pharmapacks, an online seller of health, personal care and beauty products, is packing up operations after a failed IPO and the inability to secure additional financing. Packable is the parent company of Pharmapacks who has for many years been the largest reseller on the largest online marketplace, Amazon. In the disclosures, Pharmapacks sold nearly $500M annually, burning over $140M in 2021. That’s over $350k per day in losses.
Amazon has over 100,000 sellers that sell over $100K a year. High revenue does not mean profitability. Lack of profitability can lead to cutting corners. Packable was a large, well-run organization, with systems to track lot codes and adhere to FDA and other regulations.
Brands have the ultimate responsibility to insure those selling their items, adhere to regulations. Third-party sellers, sometimes unaware of regulatory guidelines, can and do cut corners that can put the brands at risk.
Packable highlights that resellers need to be tracked and managed, and that any individual seller can risk a brand’s reputation.
3 Watch Outs with Packable closing operations:
* Prices will be compressed. Items are being liquidated quickly, on and off Amazon. Pharmapacks is actively selling over 30,000 different items on Amazon as of 8.25.22
* Resellers with high inventory will pop up. Expect bulk sales from Packable to other resellers.
* More sellers will fill the void. Distributors selling to Packable need to make up for the gap and will likely be opening up to other sellers.
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Pharmapacks, an online seller of health, personal care and beauty products, is packing up operations after a failed IPO and the inability to secure additional…