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Amazon Agency - Managing Workflow Internally or Externally?

For whom is the use of an Amazon agency worthwhile? In this article, we highlight potential outcourcing of the Amazon workflow.

Who needs an Amazon agency and what for?

The digital business world has changed, and Amazon is the crucial hub for companies that want to make it big. The reach of this platform is almost limitless and offers the unique opportunity to generate huge sales both nationally and internationally. But this requires more than just luck and diligence - to be successful on Amazon, you need in-depth knowledge and a professional approach. This is where Amazon agencies step in. In this article, we will examine for which companies a collaboration with an Amazon agency can be worthwhile and what advantages and disadvantages there are.

The jungle in which everyone wants to cavort!

The Amazon business is growing inexorably, and both major brands and manufacturers with many years of experience in online retailing are facing the challenge of using this sales channel effectively. Organizing the Amazon business requires not only revenue generation, but also long-term profitability. Success as an Amazon Seller depends on a number of factors. Setting up a brand store, optimizing product pages and product descriptions, and being creative with advertising campaigns all play a crucial role. It takes a whole team of experts from different fields to successfully manage all aspects of Amazon business. Companies need to ask themselves honestly: Do we have what it takes to handle the entire Amazon business internally, or do we need to upgrade?

Outsourcing the Amazon distribution - A smart tactic?

Existing or new employees offer the advantage of keeping this sales process in-house. Not every company is willing to show this much transparency to the outside world. But can they meet Amazon's sometimes cryptic requirements? With an Amazon agency, you get a whole team of experts on board right away, trained to understand the complex requirements of the online marketplace and to increase visibility and sales in the long term. An agency also offers support in choosing the distribution and logistics model, brand presentation, strategy development and internationalization of the marketplaces. What are the advantages of working with an Amazon agency?

6 reasons for an Amazon agency

1. CAPACITIES: Many people are not aware of the time required to operate and manage an Amazon Vendor or Seller account, and this is often one of the reasons for failure in the end. If this field is outsourced to an agency, the company's own employees can concentrate on their competencies and the core business.

2. Expertise: Amazon agencies have the necessary know-how and experience to maximize success on the platform. They know the current best practices, trends and changes in algorithms and adapt their strategy accordingly.

3. Personal Contact: An Amazon agency provides a marketplace manager who is available to answer questions and address concerns for effective communication and a faster resolution of issues.

4. INDIVIDUAL ACTION:The agency adapts its activities to the needs of the company. A targeted strategy can improve sales growth, organic placements and the ACoS value (Advertising Cost of Sale).

5. Measurable success: The performance of an Amazon agency is measurable. They provide regular reporting on sales growth, organic rankings, and other relevant metrics. This enables accurate evaluation of results and continuous optimization of the strategy.

6. ANALYSIS AND FORECASTS: Amazon agencies use specialized software and create analytics and forecasts to predict the success of products on the platform. This enables data-driven decision making and effective strategy adaptation.

Last but not least - Are there any disadvantages to working with an agency?

Outsourcing in the Amazon business can make sense, but requires careful consideration. The decision about which parts of the marketplace business should be outsourced should be made along the process chain. Specialized agencies can provide valuable support in areas of high expertise, such as Amazon Advertising, Amazon SEO and internationalization processes. However, other areas such as direct customer contact, price control and strategic decisions should remain in-house in order to maintain control over the business channel.

And of course, not all that glitters is gold... Outsourcing all Amazon processes can increase the company's visibility and revenue relatively quickly, but prevents in-house staff from operating the complex Amazon processes. The learning curve is much steeper with the in house business, but also involves much more work and capacity.

A good collaboration with an Amazon agency is based on transparency and clear lines of communication. It is important to have a contact person at eye level who understands the agency's way of working and results. At the same time, good briefing and assignment management on the part of the company is crucial, because just because an agency does most of the work doesn't mean that responsibility is handed over at the coat check. The company needs to stay on top of things and do its own share of the work in the form of decision-making and an accessible, involved staff. Only through effective collaboration can the full potential of the agency be realized.

Interesting FAQs

1. How do I find the right Amazon agency for my business?

Choosing a suitable Amazon agency requires thorough research and evaluation. You should look for agencies that have proven experience and success in Amazon. Read customer reviews and testimonials to get an idea of the agency's reputation and performance. It can also be helpful to speak directly with agency representatives to ask questions and learn about their approach.

2. How much does it cost to work with an Amazon agency?

The cost of working with an Amazon agency can vary depending on the scope of services and what the agency does. Some agencies work on a commission basis, while others charge a monthly fee. It is important to clarify the cost structure and pricing model in advance to make sure it fits into your budget.

3. Can I do certain tasks myself and outsource others to the agency?

Yes, it is possible to do certain tasks in-house and outsource others to the Amazon agency. You should work with the agency to clearly define tasks and responsibilities and ensure that both parties have a clear understanding of who is responsible for which areas.

4. How long does it take to see results from working with an Amazon agency?

The time it takes to see results from working with an Amazon agency can vary. It depends on various factors, such as the current state of your Amazon business, the competitive situation, the strategies used, and the scope of the actions. It is important to be patient and aim for long-term results, as Amazon business requires continuous optimization.

5. Is an Amazon agency suitable for every business?

Working with an Amazon agency can be beneficial for many businesses, especially those that want to use the Amazon marketplace as an important sales channel. It's important to consider your specific goals, needs, and resources and make an informed decision about whether an Amazon agency is right for your business.

Conclusion: Why an Amazon agency is worthwhile

Working with an Amazon agency can be invaluable for businesses of all sizes. Amazon is one of the largest e-commerce platforms in the world, and the competition is intense. A professional marketing strategy and in-depth expertise are critical to succeeding in this competitive environment. An Amazon agency can help businesses navigate the complexities of Amazon and generate more revenue in the long run.