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The cost of hiring an Amazon marketing agency vs. hiring your internal team
May 31, 2023

The Importance of Amazon Marketing for Businesses

In today’s digital age, having a solid online presence is crucial for businesses to succeed. This is particularly true for companies that sell their products on Amazon, the world’s largest online marketplace. With millions of sellers vying for the attention of Amazon’s vast customer base, it’s becoming increasingly crucial for businesses to have a well-planned and executed Amazon marketing strategy. However, for businesses that lack the internal resources or expertise to develop and implement such a strategy, the question arises: should they hire an Amazon marketing agency or build their own internal team? In this article, we’ll explore the advantages and disadvantages of both options and provide some guidance on how to make the best choice for your business.

A team of marketing professionals working together in an office
 Image representing the advantages of working with an Amazon marketing agency – access to a team of professionals and specialized expertise

Hiring an Amazon Marketing Agency

Advantages of hiring an agency

Firstly, it’s essential to recognize that hiring an agency can benefit businesses looking to succeed on Amazon. By partnering with an experienced and knowledgeable agency, businesses can access advanced tools and resources that may not be available in-house. This can include access to specialized software, data analysis tools, and a team of professionals with deep expertise in Amazon marketing. Furthermore, hiring an agency can also help businesses to scale up or down quickly, depending on their needs. This level of flexibility is particularly valuable in today’s fast-paced e-commerce environment, where trends and market conditions can change rapidly. With an agency partner, businesses can stay ahead of the curve and respond quickly to new opportunities or challenges.

Disadvantages of hiring an agency

However, it’s also important to acknowledge that hiring an agency comes with some potential drawbacks. These include higher costs compared to building an internal team, less control over the marketing strategy, and potentially less involvement in day-to-day operations.

To make an informed decision about whether to hire an agency, businesses need to consider their specific goals, budget, and resources. For businesses that are serious about succeeding on Amazon and have the resources to invest in an agency partnership, the benefits can be substantial. An experienced agency can help businesses to maximize their returns on Amazon and achieve long-term success in the highly competitive e-commerce landscape.

In summary, while there are some potential drawbacks to hiring an agency, the benefits can be significant for businesses looking to thrive on Amazon. By partnering with a top-tier agency, businesses can access advanced tools and expertise, stay ahead of the competition, and achieve their goals on Amazon.

A business owner discussing marketing strategy with their team
 Image representing the advantages of building an internal marketing team – in-depth knowledge of the business and control over the marketing strategy

Hiring an Internal Amazon Marketing Team

Advantages of hiring an internal team

Hiring an internal Amazon marketing team can offer some significant advantages, such as greater control over the marketing strategy, more involvement in day-to-day operations, and potentially lower costs in the long run. By building a team in-house, businesses can have a dedicated team of professionals who are entirely focused on their Amazon strategy and have more input into the day-to-day operations of the team.

However, there are also some potential disadvantages to building an internal team, including the need to invest significant time and resources in hiring and training staff and limited access to advanced tools and resources that may be available through an agency partnership. Additionally, scaling up or down quickly can be challenging, as businesses need to hire and train new staff as needed, which can be time-consuming and costly

Disadvantages of hiring an internal team

Ultimately, the decision to hire an internal team versus partnering with an agency depends on a business’s specific needs, goals, and resources. For businesses that have the resources and expertise to build and manage an internal team, the benefits can be substantial. However, businesses must be prepared to invest the time and resources needed to build a high-performing team and stay ahead of the competition on Amazon.

In conclusion, while there are some potential disadvantages to hiring an internal team, businesses can benefit from greater control, more involvement, and potentially lower costs in the long run. By building a high-performing team in-house, businesses can achieve their goals on Amazon and stay ahead of the competition. However, for businesses that lack the resources or expertise needed to build an internal team, partnering with an agency may be the best option to access advanced tools and resources and achieve long-term success on Amazon.

 A businessman analyzing data and charts on a computer screen
 Image representing the factors to consider when deciding between a marketing agency and an internal team – business size and budget, marketing goals and strategy, industry and market complexity, and available resources and expertise

Factors to Consider When Choosing Between an Agency and an Internal Team

Choosing between an agency and an internal team can be a complex decision, with many factors to consider. Some key factors to consider include the size and complexity of your business, budget and resources, marketing goals and objectives, internal expertise and experience, and the timeline and urgency of marketing initiatives.

Businesses with larger and more complex operations may benefit from the advanced tools, resources, and expertise available through an agency partnership. Smaller businesses with limited resources may find that building an internal team is more cost-effective. However, this may come with the trade-off of limited access to advanced tools and resources. Marketing goals and objectives are also critical considerations, as different strategies may be better suited to achieving different objectives.

Internal expertise and experience are also essential factors to consider. Businesses with in-house marketing expertise may be able to manage their Amazon strategy more effectively than those without, while businesses without internal expertise may benefit from the knowledge and experience of an agency.

Finally, the timeline and urgency of marketing initiatives are critical factors to consider. Businesses with urgent needs or tight deadlines may find that partnering with an agency can help them achieve their goals more quickly. In contrast, businesses with more extended timelines may be able to build an effective internal team over time.

Ultimately, choosing between an agency and an internal team requires careful consideration of many factors, and businesses must weigh the benefits and drawbacks of each option carefully. By taking the time to evaluate their needs and resources carefully, businesses can make an informed decision that sets them up for long-term success on Amazon.

Conclusion

Building a well-planned and executed Amazon marketing strategy is crucial for businesses to succeed in today’s digital age. Companies have the option to hire an Amazon marketing agency or build their own internal team. While both options have their advantages and disadvantages, businesses need to consider their specific goals, budget, and resources to make an informed decision. Larger and more complex businesses may benefit from partnering with an agency, while smaller businesses with limited resources find that building an internal team is more cost-effective. The decision also depends on factors such as marketing goals and objectives, internal expertise and experience, and the timeline and urgency of marketing initiatives.

Ultimately, the goal of both options is to access advanced tools and resources, stay ahead of the competition, and achieve long-term success on Amazon. Both an agency and an internal team can bring significant benefits to businesses looking to thrive on Amazon, depending on their specific needs and resources. By partnering with an experienced agency or building a high-performing team in-house, businesses can achieve their goals and stay ahead of the competition.

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Amazon Managed Services

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Peter Sims

Sales Executive & Brand Evangelist

Pete has been on Amazon for 3 years now and is very happy to found a home at Velocity Sellers. In his free time Pete is an avid hiker, runner, and bowler. He also enjoys reading any book he can get his hands on and making some tea to go along with it.

Arlind Hoxha

Creative Manager

As the Creative Manager at Velocity Sellers, Arlind leads with expertise honed over many years in creative agencies. He brings a wealth of experience guiding designers and excelling in ecommerce-focused endeavors. Beyond his professional prowess, Arlind is an avid gamer, seamlessly blending creativity and strategic thinking.

Florence Palahang

Administrative Manager

Holding a BS in Accountancy from Davao City and boasting seven years of experience as a Virtual Assistant, Florence has established herself as a valuable asset. With a background spanning 95 clients worldwide, she has found her niche at Velocity Sellers, focusing on Amazon marketplaces. Beyond work, Florence enjoys reading, crochet, and baking. Her collection of plants adds vibrancy to her mornings, and witnessing her family enjoy the outcomes of her efforts brings contentment to her universe.

Kiley Forche

Treasurer

An MBA graduate specializing in Finance, boasting 11+ years of expertise. Joined Velocity Seller in 2018, contributing to our growth. Outside work, treasures family time, exploring new destinations, and passionately supports Buckeye Football

Miljan Milev

Sr. Project Manager

Seasoned project manager adept in data and e-commerce projects, collaborating globally. Outside work, finds joy in traveling, cherishing moments with family and friends.

Camilla Messmer

Sr. Project Manager

University of Arkansas grad in Supply Chain Management, excelling in eCommerce project management. Enjoys baking, travel, and writing, adding a touch of creativity to every endeavor.

Zach Taylor

Director of Logistics

Zach, a graduate with a Sociology and Environmental Science degree from the University of Montana, has consistently found himself drawn to running businesses and improving business systems, logistics, and operations throughout his professional journey. In his free time, he enjoys cycling, running, and spending quality moments in the mountains with his family.

Chris Prall

Director of Advertising

A former chef turned Geomatics graduate. While studying, he delved into managing PPC campaigns for Amazon agencies and e-commerce clients, uncovering a passion for data-driven strategies. A maestro in crafting successful PPC campaigns, he’s fueled by driving client growth, from startups to 8-figure brands. Beyond work, Chris savors cooking, vinyl collecting, camping, and embracing the great outdoors

Steffanie Morrison

Director of Sales, Sr Marketplace Analyst

Steffanie brings a rich e-commerce background since 2013, selling products and advising brands. An analytical mind with degrees from Northern Illinois University and the University of Hartford, she resides in New Hampshire, relishing family moments, travel, and outdoor adventures like hiking and skiing with her husband and kids.

Eric Peterson

Director of Brand Onboarding

Master’s in marketing, film degree from Minnesota State University-Moorhead. At Velocity Sellers, he crafts brand value, excels in client service, and loves problem-solving. An advocate for animal welfare, he enjoys cooking, classic movies, and time with his dogs.

James Dee

Director of Brand Management

Over 20 years in e-commerce mastery, specializing in Amazon. Proven brand builder and business owner. Outside the office, a proud parent to five, including a Division 1 soccer player. Enjoys family time, the outdoors, and all things soccer.

Lisa Zajdel

Executive Director

Results-Driven Executive Director. With two decades of expertise in merchandising and retail, including a successful tenure as Kohl’s Private Label Buyer & E-commerce Manager, Lisa brings over 14 years of invaluable experience on Amazon. Her dedication to delivering results is unparalleled, ensuring a strategic, seasoned approach to optimizing your business for success.

Andrew Warner

CFO

Andrew Warner, Velocity Sellers’ CFO, occupies a central role in our financial triumph. His sharp fiscal oversight guarantees our operational efficiency, ultimately empowering our team to deliver unparalleled services to a global clientele, consistently setting high standards in the industry.

Jake Schwarzbaum​

CEO

As the Co-Founder and CEO of Velocity Sellers, Jake Schwarzbaum co-launched the company while supporting his father, Nathan, during leukemia treatments. His dedication to helping brands succeed on Amazon, without relying on automated systems, drives Velocity Sellers’ commitment to excellence.

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