Outsourcing Amazon Brand Management
Amazon Agency vs In-House vs Third-Party Reseller
You’ve got a killer product.
You’re ready to take on Amazon.
But the question is, should you do it yourself, hire an agency, or partner with a third-party reseller?
Continue reading as we break down the pros and cons of each approach.
The Amazon Dilemma
Dave was a brilliant product inventor. His latest gadget, a smart pet feeder, was set to revolutionize the pet industry. But, like many inventors, he wasn’t a marketing whiz. He knew Amazon was the platform to launch his product, but the sheer complexity overwhelmed him.
He could go the DIY route, pouring countless hours into learning PPC, inventory management, and customer service. Or, he could hire a full-service Amazon agency to handle it all. But the cost was steep. A third option was to partner with a third-party reseller, but he worried about losing control of his brand.
Dave was torn. Which path would lead to success without sacrificing his sanity and profits?
As the e-commerce landscape constantly shifts, brands must decide whether to handle their Amazon presence in-house or outsource to a digital marketing agency.
Effective Amazon Brand Management = Amazon Selling Success
Navigating Amazon’s complex ecosystem demands a multi-faceted approach. Successful brands require a collaborative team with deep expertise in:
- Strategic planning
- Operations and account health management
- Advertising and media buying
- Inventory and fulfillment solutions
- Content optimization and SEO
- Promotions and merchandising
- Data-driven analytics
- Creative services
Every brand is unique, so there’s no one-size-fits-all approach. Let’s break down how in-house and outsourced Amazon brand management can tackle these facets of Amazon selling success.
In-House Amazon Brand Management
Managing your Amazon brand in-house comes with distinct advantages and challenges across critical areas of your business.
Benefits of In-House Management
- Overall Strategy
Direct control allows you to align Amazon goals with your overarching brand vision without external interference.
- Operations & Account Health
Internal teams can focus solely on your brand, ensuring consistent attention to operational details and compliance issues.
- Advertising & Media Buying
You retain full visibility into ad spend and performance, with the ability to pivot quickly.
- Inventory & Fulfillment
In-house teams have a closer connection to product logistics, minimizing miscommunication.
- Content & SEO
Tailored messaging and optimized listings reflect a cohesive brand voice.
- Promotions & Merchandising
Your team can create campaigns with a deeper understanding of your audience.
- Data Analytics
Insights stay within your organization, maintaining privacy and control over data.
- Creative Services (Listing Images, A+ Content, Brand Store)
Fully customizable assets ensure your brand identity is preserved and elevated.
Challenges of In-House Management
- Time-Intensive Tasks
Balancing listing optimization, advertising, and inventory management can overwhelm solo sellers.
- Limited Expertise
DIY management often lacks the specialized skills needed for SEO, PPC, and A+ Content.
- Ever-Changing Policies
Keeping up with Amazon’s constant rule changes can be daunting and risky if overlooked.
- Data Overload
Managing and interpreting large volumes of sales and ad data can lead to poor decision-making.
- Competitive Landscape
Staying ahead of aggressive competitors with limited resources is a constant struggle.
- Customer Service Pressure
Meeting Amazon’s strict customer satisfaction standards demands quick, effective responses.
- Stockout Risks
Managing inventory levels and supply chains without proper tools can lead to costly stockouts.
- Scaling Challenges
Expanding your brand while managing all aspects alone can hinder growth.
In-house management gives you control but can stretch resources thin. Weighing these benefits and challenges can help determine whether this approach aligns with your business goals.
Third-Party Reseller Amazon Brand Management
Leveraging a third-party reseller to manage your Amazon brand can be attractive for many businesses, especially those looking for a turnkey solution. However, this model has benefits and challenges that can significantly impact your brand’s performance and control.
Benefits of Partnering with a Reseller
- Overall Strategy
Resellers often bring deep expertise in navigating Amazon’s complexities.
- Operations & Account Health
Resellers handle logistics, account compliance, and customer service.
- Advertising & Media Buying
Resellers often manage ad campaigns.
- Inventory & Fulfillment
They take on inventory risk, offering predictable revenue streams and minimizing your need to manage fulfillment challenges.
- Content & SEO
Resellers create optimized listings, using their marketplace knowledge to improve visibility and conversion rates.
- Promotions & Merchandising
They run promotions tailored to Amazon’s ecosystem, helping drive sales without requiring your involvement.
- Data Analytics
With access to Amazon’s tools, resellers often analyze performance trends to guide decisions and adjustments.
- Creative Assets
Resellers typically produce A+ content, product videos, and brand stores, ensuring your listings are visually compelling and aligned with best practices.
Challenges of Using a Reseller
- Loss of Brand Control
Resellers may not represent your brand’s image or pricing strategy accurately.
- Lower Profit Margins
Sharing revenue with a reseller reduces overall profitability.
- Inconsistent Listings
Resellers might create duplicate or poorly optimized listings, confusing customers.
- Quality Management Issues
Ensuring resellers maintain product quality and handle returns properly can be difficult.
- Price Wars
Resellers may undercut prices, leading to market devaluation and triggering Amazon’s pricing policies.
- Inventory Oversight
Limited visibility into inventory levels or shipping practices can cause delays and stockouts.
- Lack of Direct Customer Interaction
Resellers control customer relationships, limiting your ability to build loyalty.
- Dependency Risk
Over-reliance on a reseller can hurt your brand if the partnership fails or terms change.
While partnering with a third-party reseller can simplify your entry into the Amazon marketplace and alleviate operational burdens, the potential drawbacks—especially in terms of control and data ownership—can have lasting impacts on your brand. Before committing to this model, consider whether these trade-offs align with your long-term goals.
A Third-Party Reseller Experiment: A Cautionary Tale
During Q1 2023, a brand partnered with a third-party reseller to expand its presence on Amazon and other platforms. The reseller’s U.S. warehouse network provided faster fulfillment and Prime badges for large, bulky items, but the partnership proved less effective for smaller products.
Initially, the reseller managed the Amazon Buy Box and fulfillment, maintaining solid product ratings. However, as competition grew and ad costs surged, the reseller struggled to maintain margins, leading to pricing challenges.
Ultimately, the brand regained control of its Amazon listings, ending the partnership for smaller items while the reseller continued selling on other platforms.
Key Lessons
- Match Product Type with Reseller Strengths
Resellers are ideal for large, bulky items but not for small products suited to FBA.
- Monitor Market Changes
Rising competition and ad costs can hurt profitability; reassess the partnership as needed.
- Maintain Customer Service Standards
Use direct communication channels or inserts to manage customer service expectations.
- Stay Flexible
Be prepared to take control if market conditions change.
Outsourcing Amazon Brand Management to an Amazon Agency
Outsourcing Amazon brand management to a full-service agency provides a comprehensive approach to your business’s success on the platform. A dedicated team of experts ensures your operations, strategy, and account health are optimized, which frees up your time to focus on growth.
Amazon Agency Benefits
- Overall Strategy
Agencies create tailored growth strategies, aligning your brand’s goals with Amazon’s ecosystem, ensuring a clear path to success.
- Operations and Account Health
Agencies track and manage account health, from policy compliance to performance metrics, ensuring your account stays in good standing.
- Advertising and Media Buying
Agencies optimize your Amazon PPC campaigns to boost sales while reducing ad spend, maximizing ROI.
- Inventory and Fulfillment
Experts ensure smooth inventory management with FBA/FBM strategies, preventing stockouts and managing fulfillment to meet demand.
- Content and SEO
With proven Amazon SEO strategies, an agency enhances your product listings, improving search rankings and visibility.
- Promotions and Merchandising
Agencies develop promotional strategies that elevate product visibility and drive more conversions.
- Data Analytics
They provide detailed insights on your product’s performance, guiding data-driven decisions that push your business forward.
- Design and Creatives
Agencies design high-converting listing images, product videos, A+ content, and custom brand stores to enhance customer experience and increase CTR.
Amazon Agency Challenges
- Communication Gaps
Maintaining consistent and effective communication with your agency is crucial. Lack of transparency can lead to misalignment with your brand’s vision.
- Quality Control
While agencies offer expertise, it’s essential to ensure their strategies align with your brand’s identity. You may need to monitor the process to ensure that the results are consistent with your expectations.
- Dependence on External Teams
Relying on an external agency means entrusting them with critical aspects of your business. It’s important to choose an agency with proven expertise and reliability.
- Choosing The Right Agency
Outsourcing to a full service Amazon agency can accelerate your brand’s growth and streamline operations. However, it’s essential to choose an experienced partner and maintain clear communication to ensure long-term success.
If you need help assessing your needs for Amazon Agency services, read this guide.
Industry: Pet Products (Dog Seat Covers)
Challenges
- New Market Entrant
Ruff Liners struggled to differentiate itself in the competitive pet products category.
- PPC & Conversion
Higher price point made achieving conversions difficult.
- Logistics
Managing multiple sizes and versions created inventory and fulfillment challenges with FBA and 3PL.
Approach
Marketing & Design
Analyzed competitors, identified key keywords, and created Premium A+ Content, infographics, and video to highlight unique features and boost engagement.
Product Launch Strategy
Timed product releases and PPC campaigns, and launched an XL size to optimize keyword targeting and reviews.
Logistics & Inventory
Enhanced inventory forecasting, optimized the supply chain to reduce stockouts, and used AWD for faster fulfillment.
PPC & Ads
Ran targeted PPC campaigns and brand promotions to drive organic sales, continuously optimizing ad spend.
Conversion Optimization
A/B tested product titles, images, and A+ content to improve conversions.
Results
- 378% Increase in Weekly Sales
- Top 75 Best Seller Rank (BSR)
- Continued growth driven by Amazon Agency’s ongoing strategy
Want to see your sales soar like Ruff Liners? Outsource your Amazon brand management to our Amazon Agency today!
Is Your Brand Management Driving Results?
It’s not always easy to assess if your brand management efforts are paying off. Here are some key indicators that it’s working:
- Your brand is gaining recognition, customer awareness is increasing, and your audience is expanding.
- You’re seeing positive trends in important metrics like sales, revenue, conversions, and growth.
- Your team is aligned, working together to deliver a seamless customer experience.
- You’re in a strong position to diversify or expand your product offerings.
- Audience feedback and brand audits show a positive sentiment towards your brand.
- Your profitability is rising and you’re gaining market share.
If you’re not seeing these results or facing challenges in these areas, it may be time to rethink your brand management strategy.
Let our Amazon Agency help you elevate your brand management!
