As the managing director of full-service Amazon agency Fluid Marketplaces, I believe there are numerous key advantages to brands using an agency for their growth over an in-house team. However, there are also some scenarios when establishing an in-house team is more beneficial to Amazon sellers, and this can often be the long term goal of the brands we work with.
In this article I explain the advantages of both options so that brands can understand what a specialist agency can provide them with, but also the benefits of an in-house team.
As an Amazon agency owner, I’m going to start with what makes agencies so good at delivering growth for brands:
Amazon agency benefits for brands
1. Expertise and experience
Amazon agencies such as Fluid Marketplaces work with multiple clients across various sectors, so they bring a wealth of hands-on, up-to-date knowledge about how to put in place Amazon strategies that will achieve growth for those clients.
In addition, we are already familiar with Amazon’s algorithms, trends, PPC platform, SEO, A+ Content, Brand Registry, and ever-changing policies. At Fluid Marketplaces we pride ourselves in being experts at everything to do with Amazon and have systems in place to ensure staff stay on top of the regular updates that are released.
Not all agencies are created equal however so brands are required to do their homework before instructing one to ensure they provide a high standard of service.
2. Speed to execution
Amazon agencies hit the ground running. There’s no need for a lengthy onboarding or training period. Trying to recruit and manage an in-house team can often be a headache for Amazon sellers. Not only is recruitment expensive, staff require a high degree of management, and if brand owners are not Amazon experts themselves, they run the risk of bringing people into the business who do not have all the necessary skills and do not perform optimally. The amount of time it takes to recruit and manage an in-house team can not only delay growth, but also negatively impact other parts of the brand’s operations. And this time investment doesn’t end once the team is set up, it will be an ongoing challenge for as long as the team exists.
Amazon agencies already have the established processes, tools, and templates to launch or scale quickly, so the time it takes for them to set up, establish a strategy, and start growing your brand should be much less. At Fluid Marketplaces we provide activity and results reports from the very start of our relationship with a client so they can immediately see what they are paying us for.
3. Financial cost efficiency
As mentioned above, hiring an in-house team can bring numerous challenges, with one of the biggest ones being the financial cost. Even a small in-house team will need the cost of salaries, benefits, software, training, and management time to be covered.
On the flip side, Amazon agencies can be much more cost-effective, because there is nothing to take into consideration beyond the fee that has been agreed. This makes agencies more affordable for most brands, particularly in the important early days of growing a brand on Amazon.
At Fluid Marketplaces we see ourselves as an extension of the brands we work with and see achieving growth as a holistic process. We are all Amazon growth experts, so management and time needed from clients is minimal. We are there to make the process of growing on Amazon straight forward, while consistently focusing on growing our clients’ bottom line.
4. Scalability and flexibility
Amazon agencies offer great scalability when needed, because they are designed to flex and grow with the brands they serve. This is something that’s often harder and slower to achieve with an in-house team.
At Fluid Marketplaces we can increase the time spent on a brand’s account on demand, which can be particularly useful during peak periods such as Prime Day. With an in-house team it may be necessary to hire, which as mentioned above, brings challenges.
At the same time, Amazon agencies are able to quickly scale back when required, and this flexibility can be extremely valuable for brands.
Your brand’s Amazon needs will vary throughout the year. Agencies offer the flexibility to scale up or down based on seasonality or your business goals. Conversely, adding or removing in-house team members isn’t nearly as easy — and often comes with HR and morale challenges.
5. Access to premium tools
Amazon agencies have access to advanced Amazon analytics, keyword research, and ad tools that may be cost-prohibitive for one brand.The cost is included in a brand’s retainer so this is another example of how agencies come out on top for financial considerations.
By working with an agency, you benefit from their technology and their ability to extract insights quickly, helping you make smarter decisions without footing the full bill.
6. Multidisciplinary team — without the hiring headache
To compete effectively on Amazon, you need more than one skillset. You need:
- An understanding Amazon’s algorithm
- Excellent copywriting for conversion
- Great designs and compelling A+ content
- Advertising expertise to manage your campaigns
Ensuring you have each of these skills covered with an in-house team is a major undertaking. With an agency, you gain access to all of these roles instantly.
Now let’s look at the positives that in-house Amazon teams bring, because the reality is that they can offer several strategic and operational advantages.
In-house Amazon team benefits
1. Greater brand connection
Once an in-house team is fully bedded in, they will have a stronger connection to your brand simply because it is the only one they work on. They shouldn’t need to check messaging with brand owners, and may even be the ones setting the tone. They should also have all your brand assets at their fingertips and in general won’t need to ask as many questions, or ask for essential brand items.
2. Faster response times
Whilst we pride ourselves on getting back to clients quickly at Fluid Marketplaces, responses should be even quicker from in-house by way of proximity, and the fact that they are not juggling meetings and responsibilities for other clients.
In-house Amazon teams should be able to resolve any issues, and action changes to campaigns, in real time due to not having to consult a third party.
Whether it’s responding to a competitor move, or an Amazon algorithm change, in-house teams are often able to pivot more rapidly
3. Deeper knowledge of your company
An in-house Amazon team may be more familiar with your products due to spending more time being surrounded by them. This can assist the speed and accuracy of content creation, listings and keyword strategies.
Having an in-house team can also be advantageous when it comes to working with other departments such as sales, logistics, marketing and customer service. The ease of information sharing between departments within the same brand can be a huge plus point.
4. Cost efficiency over time
Whilst I believe that Amazon agencies are very cost effective, there is an argument that once a certain scale has been achieved, an in-house team is more cost-efficient.
As a brand’s Amazon presence and success grows, the needs of that brand may be best served by an in-house team, and this also may make the most financial sense if the account needs several hours of work done every day.
However, for the majority of brands looking to scale, an agency can offer the most financially viable route to growth.
So which is best?
It is for Amazon brands to decide whether hiring an agency, or in-house team, will work best for them. The needs of brands also change over time, and while an agency may be best in the early days of growth, an in-house team may be needed once the brand has grown beyond what an agency can offer.
There is no right or wrong answer, but many brands may find it beneficial to start with an agency, before progressing towards an in-house team once they have achieved a good amount of success.
At Fluid Marketplaces we are always happy to have an informal chat with brands in person, or over the phone, about their needs. If you would like a no obligation discussion, get in touch with us here and we will get back to you as soon as possible.