Choose an Amazon Agency: Avoid Getting Burned | Marknology

The Amazon Agency Problem

The Amazon agency space has a trust problem. And honestly? It's earned.

Insights from Andrew Morgans and the Marknology team in Kansas City.

Too many agencies overpromise, underdeliver, and lock brands into long contracts with nothing to show for it. We've seen it firsthand at Marknology because we're often the agency brands come to after getting burned somewhere else. Explore our Amazon consulting services for expert support.

This guide isn't a sales pitch. It's a practical framework for evaluating any Amazon agency, including us. Because the right agency can transform your Amazon business. The wrong one can set you back months and cost you a lot more than their fees.

When Do You Actually Need an Agency?

Not every brand needs an agency. Let's start there.

You Probably Need an Agency If:

• You're doing $500K+ on Amazon and don't have a dedicated in-house team
• Your PPC spend exceeds $5K/month and you're not sure if it's efficient
• You're launching on Amazon for the first time and want to do it right
• Your growth has plateaued and you've tried everything you can think of
• You're spending more time on Amazon operations than your actual business
• You need specialized skills (advertising, content, supply chain) you don't have in-house

You Probably Don't Need an Agency If:

• You have 1-2 products and time to learn the platform yourself
• Your revenue is under $100K and margins are tight
• You have a capable in-house team already
• You just need one specific task done (freelancers might be better)

Red Flags: How to Spot a Bad Agency

Here's what should make you run the other direction.

1. They Guarantee Specific Results

"We guarantee you'll hit $1M in 6 months" is a lie. Nobody can guarantee specific revenue numbers on Amazon because too many variables are outside an agency's control: competition, market trends, supply chain issues, Amazon policy changes. Honest agencies set targets and explain the strategy to get there. They don't make promises they can't keep.

2. They Won't Share Their Strategy

If an agency says their strategy is "proprietary" and won't tell you what they're doing, that's a problem. You're paying for their expertise. You deserve to understand the approach, even if you don't execute it yourself.

3. They Lock You Into Long Contracts

Beware of agencies requiring 12-month commitments upfront, especially before you've seen any results. Month-to-month or quarterly agreements with reasonable notice periods are the standard for confident agencies. If they need a contract to keep you, ask why.

4. They Don't Have Amazon-Specific Experience

General digital marketing agencies that "also do Amazon" rarely do it well. Amazon is its own ecosystem with its own algorithm, rules, and best practices. Look for agencies where Amazon is their core business, not an add-on service.

5. They Can't Show Case Studies

Real results from real clients. Not theoretical examples. Not "we helped a brand grow 500%" without context. Detailed case studies with before/after metrics, strategies used, and timelines. If they can't show this, they either don't have results or don't track them. Neither is acceptable.

6. You Can't Talk to Their Current Clients

References matter. Any good agency should be willing to connect you with 2-3 current clients who can speak to their experience. If they won't, that's telling.

7. They Don't Own Up to Their Limitations

No agency is good at everything. If they claim to be experts in advertising, content creation, supply chain, international expansion, and brand protection all at the same level, they're either very large or very dishonest. Good agencies know their strengths and are transparent about areas where they're still growing.

What to Look For in the Right Agency

Deep Amazon Expertise

Look for agencies with team members who have worked on Amazon for 5+ years. Check if they have Amazon certifications or partnerships. Ask about their experience in your specific product category.

Transparent Reporting

You should receive regular reports (weekly or bi-weekly) that show exactly what's being done and what results it's producing. Dashboards are great. But you also need a human who can explain the data and answer your questions.

Clear Communication

How responsive are they during the sales process? That's usually the best they'll ever be. If they take a week to reply to your inquiry, imagine how they'll communicate when you're a paying client. Look for agencies with dedicated account managers and clear communication protocols.

Strategic Thinking

The best agencies don't just execute tasks. They think strategically about your business. They should ask you hard questions about your goals, margins, competitive landscape, and growth plans. If they just ask "what do you need us to do?" that's a task executor, not a strategic partner.

Proven Track Record in Your Category

Amazon strategies vary significantly by category. A beauty brand and an industrial supply company require very different approaches. Ask for examples of work in your specific category or similar categories.

Questions to Ask Before Signing

Ask these questions to any agency you're evaluating. Their answers will tell you everything you need to know.

About Their Business

1. How long have you been managing Amazon accounts?
2. How many active clients do you currently manage?
3. What's your team structure? Who will actually work on my account?
4. What's your client retention rate?
5. Can I speak with 2-3 current clients?

About Their Approach

1. What does your onboarding process look like?
2. How do you develop strategy for a new client?
3. What tools and software do you use?
4. How do you handle PPC management? What's your optimization cadence?
5. Do you have in-house content creation capabilities?

About Results and Reporting

1. What KPIs do you track and report on?
2. How often will I receive reports?
3. What does success look like at 3, 6, and 12 months?
4. Can you share case studies from brands similar to mine?
5. What happens if results aren't meeting expectations?

About Terms

1. What's your pricing model (flat fee, percentage of sales, hybrid)?
2. What's the contract length and cancellation terms?
3. Who owns the ad accounts and creative assets?
4. What's included vs. what costs extra?
5. How do you handle scope changes or additional requests?

Pricing Expectations: What You Should Pay

Agency pricing varies widely. Here's a realistic range for 2026:

The pressure of managing Amazon advertising without the stress is real. Drew Morgans dives into it on Business Therapy -- honest conversations about the challenges sellers actually face.

Full-Service Management

• Small brands ($100K-$500K revenue): $2,000-$5,000/month
• Mid-size brands ($500K-$2M revenue): $5,000-$10,000/month
• Large brands ($2M+ revenue): $10,000-$25,000+/month

PPC Management Only

• Typically 10-15% of monthly ad spend, with a minimum monthly fee of $1,000-$2,500

Percentage of Sales Model

• 3-8% of total Amazon revenue, depending on services included

What's Fair?

The right pricing depends on the ROI. If an agency charges $5,000/month but generates an additional $50,000 in monthly revenue, that's a 10x return. Focus on value, not just cost. The cheapest agency is rarely the best value.

The Onboarding Process: What to Expect

A good agency onboarding should take 2-4 weeks and include:

• Full account audit (listings, ads, reviews, competitor landscape)
• Strategy development with clear goals and timelines
• Access setup (Seller Central permissions, ad accounts)
• Baseline metrics documentation
• Content gap analysis
• 90-day action plan

If an agency says they'll "start running ads tomorrow," that's a red flag. Rushing into execution without understanding your business is a recipe for wasted spend.

How to Set the Relationship Up for Success

• Be transparent about your margins and goals: The more your agency knows about your business, the better they can serve you
• Give them access to the data they need: Don't gatekeep information
• Establish clear communication expectations: How often, what channel, what response time
• Set realistic expectations: Results take time, especially for new products or major strategy changes
• Give feedback: If something isn't working or you're not happy, say so early

When to Walk Away

Even with the right agency, sometimes it doesn't work out. Consider moving on if:

• Communication has broken down and isn't improving
• Results after 6 months are significantly below projections with no clear plan to improve
• Your account manager keeps changing
• They're not adapting strategy based on data
• You feel like just another number, not a partner

Want to See How Marknology Does It?

We're not the right fit for everyone, and we'll tell you that upfront. But for brands serious about growing on Amazon with a team that's been doing this since 2014, we'd love to chat. Talk to our team and let's see if we're the right match.