Are Amazon Marketing Agencies Worth It? [Pros and Cons]

October 17, 2022

The world’s largest online retailer, Amazon, has become a major player in the e-commerce industry. With millions of products being listed on the platform every day, it can be overwhelming for sellers to navigate and effectively market their products. This is where Amazon marketing agencies come in.

These agencies specialize in helping sellers optimize their listings, run targeted advertising campaigns, and increase sales. But are they worth the cost?

Many agencies have a deep understanding of Amazon’s algorithms and best practices for success on the platform – with access to advanced tools and software to aid in their efforts.
On the flip side, hiring a marketing agency can be quite expensive. Companies can expect to pay anywhere from several hundred to several thousand dollars per month.
There is no guarantee that these strategies will result in increased sales or ROI for your business.

Ultimately, whether or not an Amazon marketing agency is worth it depends on your specific needs and budget as a seller. For those just starting out on the platform or without prior experience in e-commerce, partnering with an agency can provide valuable guidance and support. However, experienced sellers may prefer to handle their own marketing efforts or partner with a more affordable solution such as a virtual assistant or consultant. In all cases, it makes sense to measure the results of your marketing efforts. We’ve found tools like Junglytics can help Amazon brand owners measure what really matters in their business and ultimately become more profitable.

Use this outline to skip to any section of this page:

Are Amazon marketing agencies worth it?
At what stage should I use an agency?
Pros of Amazon marketing agencies
Cons of Amazon marketing agencies
Factors to consider before choosing an Amazon agency

Are Amazon marketing agencies worth it?

It depends on the specific agency and their abilities. Some agencies are great at helping with branding, while others specialize in ecommerce Amazon marketing or search engine optimization.

Some agencies are good with multiple areas, and some are good with nothing at all (while claiming otherwise).

Before hiring an Amazon marketing agency, be sure to do your homework and ask for references. Ask the agency how they plan to help you reach your goals, and be sure to get a good understanding of their capabilities and past successes.

If you’re not happy with the results after working with an agency, don’t be afraid to fire them and find one that is a better fit for your business.

However, don’t be a “hassle client” and a pain for the agency either – otherwise they can end the relationship and fire you as well. This means if the agency DOES get results, you won’t get to take advantage of their abilities and see the positive returns they can generate for you.

Are Amazon Marketing Agencies Worth It? [Pros and Cons]

At what stage should I use an agency?

It depends on a few factors, such as your budget, how much marketing you’re currently doing on your own, and the stage of your business.

Since an Amazon marketing agency will typically charge bare minimum $1,000 per month, you should have at least $30k in funds set aside to begin investing in marketing – or $30k in annual gross profit.
If an agency charges $5-20k per month, you MUST be ready to scale fast. Make sure your supply chain is secured and inventory is available.
If you’re just starting out and don’t have a lot of money to invest in marketing, then you should wait until you get some traction and begin making sales.

If you’ve been doing some marketing on your own (but it’s not getting the results you want), or if you don’t have the time or resources to do it all yourself, then it may be time to consider hiring an agency.

Pros of Amazon marketing agencies

Higher conversion rates

Using an Amazon marketing agency can greatly benefit your business. With their expertise and experience, they can help increase your Amazon conversion rate and drive greater profits.

One way they can do this is by optimizing your product listings to attract more customers and convert them into buyers.
This includes using relevant keywords, compelling product descriptions, and attractive images.
Another way is by managing your advertising campaigns, such as sponsored ads or Amazon Marketing Services (AMS).
They can make sure you are targeting the right audience and continuously monitor and adjust your campaigns for maximum effectiveness.

Overall, working with a professional Amazon marketing agency can be a valuable investment for your business and lead to significant growth in sales and profits. For more on this, check out What Is Amazon Conversion Rate? (Definition).

Lower CPAs, faster scalability

Many Amazon marketing agencies have great expertise in the platform and its advertising options. With constantly evolving features and updates, having a team that stays on top of these changes can give your brand an advantage over competitors.

An agency can help optimize your ad campaigns for maximum efficiency and ROI.
By analyzing data and making strategic changes, they can lower your cost per acquisition and increase profitability.
On top of these benefits, a marketing agency can also assist with scaling your business by expanding into new markets or product lines.
They can provide market research to inform decisions and manage the necessary advertising campaigns to drive growth.

Overall, utilizing an Amazon marketing agency can greatly benefit your brand by reducing costs and helping accelerate growth.

Dedicated, fast-moving advertising operation

Working with a marketing agency gives you access to a dedicated team of experts – who can quickly and efficiently set up and manage your advertising campaigns.

This allows for faster response to new product launches and seasonal promotions, ensuring that your brand stays ahead of the competition.
An agency will have extensive experience and knowledge in Amazon advertising strategies, helping you make the most out of your ad spend and drive more sales.
They can also provide valuable insights into the behavior of Amazon shoppers, allowing for targeted and effective advertising tactics.

Overall, utilizing an Amazon marketing agency can significantly improve the success of your advertising efforts and ultimately boost your sales on the platform.

Cons of Amazon marketing agencies

Pricing

While Amazon marketing agencies may provide valuable services and expertise, their high prices can be a major barrier for small businesses.

Small businesses often cited cost as a top concern when considering outsourcing their Amazon marketing efforts.
For these companies, it may be more cost effective to invest in education and training for their own team members rather than hiring an outside agency.
This approach also allows the business to maintain control over their Amazon marketing strategies and stay agile in a constantly changing marketplace.

Additional options

There are often lower-cost options available such as freelancers or smaller agencies that specialize in serving small businesses and startups.

These alternatives can provide the same level of expertise without breaking the budget.
For larger businesses with significant resources and a need for specialized assistance, working with a high-priced Amazon marketing agency may still make sense.
However, it is important for all businesses to carefully weigh the costs and benefits before making a decision.

In some cases, investing in long term efforts such as building a strong brand and improving product listings may ultimately be more cost effective than relying solely on advertising campaigns from an agency. As with any business decision, careful research and analysis can help determine the most profitable path forward.

Extremely high risk

Using an Amazon marketing agency can be a risky proposition for businesses, as numerous accounts have reported losing significant amounts of money after enlisting the help of such agencies.

One major red flag to watch out for is agencies that promise quick and drastic increases in sales and rankings. These promises are often empty and can result in tactics that violate Amazon’s terms of service, leading to account suspensions or bans.

Another issue with agencies is their lack of understanding about the unique aspects of selling on Amazon.

Many agencies also offer services for other platforms, such as eBay or Shopify, and may not fully grasp the complexities and constantly evolving guidelines of the Amazon marketplace.
It’s important to thoroughly research any agency being considered, including reaching out to past clients for references and reading online reviews.
In some cases, using an outside agency may be worth the risk if they have a proven track record and specialized expertise that can benefit a business.

However, it’s crucial to carefully weigh the potential benefits against the potential downsides before making a decision. Smaller businesses may find it more cost effective to invest in their own education and resources for successful Amazon marketing strategies.

Limited resources

One potential drawback of using an Amazon marketing agency is their limited resources. While they may have expertise in certain areas, they may not be able to handle all aspects of your FBA business.

For example, they may not have a full understanding of inventory management or be able to provide in-depth analysis of customer behavior and purchasing patterns.
Plus, an agency may not have the same level of customization options as an in-house team.
They may offer a set package of services or a one-size-fits-all approach, rather than being able to tailor their strategies specifically for your unique business needs.

Overall, it’s important to carefully consider the level of resources and customization available when deciding between an Amazon marketing agency and an in-house team. While an agency may offer convenience and expertise in certain areas, they may not be able to fully meet all of your FBA business needs.

Factors to consider before choosing an Amazon agency

Proof and evidence of past success

In order to find the best Amazon marketing agency for your business, it’s important to look at their track record of success.

Ask for case studies or examples of past campaigns they’ve run and their resulting success metrics.
It’s also a good idea to ask for references from past clients and reach out to them for feedback on their experience working with the agency.
This can give you insight into the agency’s effectiveness and level of communication, as well as their ability to deliver results.

In addition, consider what services the agency offers and how they align with your specific needs and goals. Are they experienced in listing optimization? Can they help with conversion rate optimization? Do they offer PPC management or sponsored ads services?

Choosing an agency that offers a comprehensive suite of services can save time and ensure a cohesive strategy across all aspects of your Amazon presence.

Protection or guarantees

In order to make sure our investment in an Amazon marketing agency is protected, it’s important to consider what protections and guarantees they offer.

Ask about any type of refund or satisfaction guarantee they have in place. This shows they are confident in their ability to deliver results and aren’t afraid to put their money where their mouth is.
Inquire about the agency’s contract terms and conditions. Are there clear expectations laid out for both parties? Are there clauses in place to protect our brand and intellectual property? It’s crucial that we fully understand our rights and responsibilities before signing on the dotted line.
Research the agency’s track record and see if they have any notable accomplishments or partnerships with reputable brands. A successful history and positive client testimonials can give us peace of mind that we’re making a wise choice in partnering with them.

Overall, taking the time to carefully evaluate a potential agency’s protections and guarantees can save us from headaches and frustrations down the road.

How the process works

When it comes to choosing an Amazon marketing agency, it’s important to ask about their process and see if it aligns with your own goals and needs.

First, find out how the agency chooses keywords and optimizes listings. Do they conduct thorough market and competitor research? Do they have a strategy for consistently tracking and adjusting keywords? Understanding their approach in this area can give insight into their overall capabilities.

Next, inquire about their communication style and availability. Will they provide regular updates on campaign progress and make adjustments as needed? Can you easily reach them with questions or concerns? Good communication is crucial for a successful partnership.

Additionally, consider how the agency worked with previous/current clients. Have they delivered significant sales growth for other Amazon sellers? Are their current clients happy with their services? Taking the time to thoroughly vet potential agencies can save you from making a costly mistake in the long run.

Final thoughts on whether Amazon marketing agencies are worth it

In conclusion, whether or not to hire an Amazon marketing agency ultimately depends on the needs and resources of your company.

On one hand, agencies can provide expertise and specialized knowledge that may result in increased sales and profits. However, they also come with a hefty price tag and may not always deliver promised results.

It’s VERY possible you get no return, or sometimes even lose a few thousand.

Ultimately, it’s important to carefully weigh the pros and cons and thoroughly research potential agencies before making a decision.