— What you need to know to find an Amazon consultant or service partner
- Do you choose agencies because they claim to manage billions or millions of dollars in Amazon sales?
- Are you impressed by agencies that have prestigious brand logos on their websites?
- Do you prefer agencies who guarantee you a vendor manager face time?
- Are you impressed by agencies full of ex-Amazonianians?
As a prospective client looking for a partner who can help you build a successful business on Amazon, it can be confusing and overwhelming with all the information, marketing banners, and youtube ads. What matters and what does not? What are they not telling you? How do you read between the lines?
There are probably more than thousands of Amazon consultants and service agencies in the US, more globally. Some are founded by ex-Amazon executives; some are successful sellers-turned consultants; others are evolved from traditional advertising agencies or sales rep groups. The size can vary between one person consultant to a large group with hundreds of employees.
As an ex-Amazonian who worked at brands managing agencies; and also at an Amazon agency, I’d like to share some thoughts that hope to be helpful.
a. Understand the reality.
There is no magic running an Amazon business. No one has the superpower to make the best-seller overnight. It takes time, dedication, and patience. Building and growing the Amazon business is a collaborative and consistent effort between brands and Amazon experts. Don’t trust those who promise you to decrease ACOS from 50% to 5% without even reviewing your campaigns. PPC campaigns are measured by multiple KPIs.
b. Understand your Amazon goal and priorities.
Do you want to launch a digitally native brand? Do you want to focus on top-line revenue? Do you want to prioritize profitability? Be sure to have a clear goal and discuss that with the agency. Strategies can be different based on goals, priorities, and budget. Treat your Amazon partner as part of your marketing & sales team. Share your marketing and social media calendar. Amazon Attribution lets you track and measure the impact of search, social, display, email, and video media channels outside Amazon on Amazon sales.
c. Understand the onboarding process and key performance indicators.
What is the plan and milestones for the first 30–60–90 days? What is like to be successful on each stage. Discussing this will help set up the right expectation in terms of progress. It would be helpful to adjust the plan based on a specific type of client.
d. Get to know the team.
What is the management structure? Whoever will be managing your account largely decides your destiny, more than the CEO or the salesperson. What are the best channels for updates and communications? What is the expected response time? For performance-based agencies, focus on tracking the progress and results instead of micro-managing day-to-day operations.
e. Case studies and client testimonials can be helpful.
Some agencies offer a chance for you to speak with their current clients. Understanding the retaining ratio and the common reasons that past clients exit may prevent future issues.
f. Category-specific experience.
Apparel & shoes are different from grocery & CPG. Amazon Business (B2B) is different from the consumer categories. Grocery has different seasonalities from outdoor. Ask category-specific questions can help decide if the agency is a good fit.
g. Function-specific experience.
If you are challenged with PPC/advertising, focus on understanding how they set up and optimize campaigns. If you are frustrated with 3p sellers, make sure you understand how they manage online distribution and sellers. If you have a huge and seasonal catalog, try to get a sense of how they can efficiently clean up and improve your catalog data.
FAQs
Q: Do agencies lie about the number of clients and revenue or clients they work with?
A: Most don’t, but I have heard some may provide misleading information.
Q: Can you trust agencies who guarantee the vendor manager face time?
A: Usually no, unless you are already top vendors in the category.
Some agencies do have close ties to vendor managers but it is unlikely vendor managers support vendors that are not attached to them (on vendor automation program). Plus Amazon vendor managers change every 18 months. You never know who is next. They may persuade you to invest in AMG (min of $35K) to get some VM time.
Q: Do agencies with ex-Amazonians are better?
A: It is helpful but not necessary. It depends.
Not everyone comes from Amazon knows how to run an Amazon business. Vendor managers may not be familiar with seller central or Amazon Advertising. The inside knowledge has a short shelf life.
I know many great ex-Amazons who continue to progress and keep updated knowledge & skills after Amazon, by working in the industry. They bring in industry-specific knowledge along with an understanding of how Amazon operates, which brings great value to clients.
