What does an Amazon agency actually do?

The term "Amazon agency" gets thrown around a lot, and it can mean wildly different things depending on who you're talking to. Some agencies just run ads. Some manage your entire seller account. Some are one person with a laptop. Here's a clear breakdown of what Amazon agencies actually do — and how to figure out if you need one.

The core services.

Most full-service Amazon agencies handle some combination of:

• PPC Management — Sponsored Products, Sponsored Brands, Sponsored Display, and DSP campaigns. This is the most common service and where most agencies start. Includes keyword research, bid optimization, campaign structure, negative keyword management, and budget allocation.
• Listing Optimization — Writing titles, bullet points, backend search terms, and product descriptions that rank in Amazon's search algorithm and convert shoppers. This includes keyword research specific to Amazon (not Google — they're different).
• A+ Content & Brand Store — Premium visual content on your product detail pages and a branded storefront. This is where creative meets conversion — good A+ content can lift conversion rates 5-15%.
• Brand Strategy — Market analysis, competitive positioning, product launch planning, pricing strategy, and long-term growth roadmaps. This is the "consulting" part.
• Catalog Management — Day-to-day Seller Central operations: new ASIN creation, variation management, case log management, inventory planning, and dealing with Amazon's constant policy changes.
• Reporting & Analytics — Regular performance reports, KPI tracking (ACOS, TACOS, organic rank, conversion rate, BSR), and strategic recommendations based on data.

What they charge.

Agency pricing models vary, but the most common are:

• Percentage of revenue — typically 3-8% of your monthly Amazon revenue. Aligns incentives but can get expensive as you scale.
• Flat monthly retainer — fixed fee regardless of revenue. Predictable, but the agency has less skin in the game.
• Percentage of ad spend — 10-20% of your monthly advertising budget. Common for PPC-only agencies.
• Hybrid — a base retainer plus a percentage of revenue or ad spend. This is what most full-service agencies use because it balances predictability with performance alignment.

At TTM Group, we use a hybrid model: a retainer based on 5% of monthly revenue (min $2,500, max $7,000) plus 3% of ad spend for campaign management.

Signs you need one.

• Your Amazon revenue is growing but your margins are shrinking — you need someone who knows where the leaks are
• You're spending more than $5K/month on ads but can't tell what's working
• Your listings haven't been updated in 6+ months and your conversion rate is dropping
• You're launching new products and don't have a go-to-market strategy for Amazon
• You're spending 20+ hours per week on Seller Central instead of running your business
• You got hit with a policy violation or listing suppression and don't know how to fix it

Signs you don't need one yet.

• You're doing less than $10K/month in Amazon revenue — the math doesn't work for most agency fees at this level
• You have one or two products and aren't planning to expand — you can learn the basics yourself
• You're not willing to invest in ads — agencies need ad budget to work with
• You want someone to "fix" a fundamentally broken product — no agency can make a bad product sell

How to evaluate an agency.

• Ask for case studies with real numbers — revenue growth, ACOS improvements, conversion rate lifts. Vague claims like "we helped brands scale" mean nothing.
• Ask who will manage your account — is it a senior strategist or a junior coordinator running a playbook? Account manager quality is the single biggest variable.
• Ask about their reporting cadence — monthly reports aren't enough. You should be getting bi-weekly reports at minimum and weekly strategy calls.
• Ask if they have Amazon experience specifically — running Google Ads or Shopify stores doesn't translate. Amazon is its own ecosystem with its own rules.
• Ask about their other services — an agency that also understands fulfillment and supply chain (like a combined 3PL + consulting model) can optimize your entire P&L, not just your ad spend.
• Check their contracts — avoid agencies that require 12-month commitments upfront. A good agency earns your business monthly.

The agency vs. hiring in-house.

A senior Amazon manager costs $80-120K/year in salary plus benefits. An agency typically costs $3-10K/month depending on your revenue. At under $2M annual Amazon revenue, an agency almost always makes more financial sense. You get a team with diverse experience across multiple brands and categories, not one person who only knows your account. Above $5M, some brands bring it in-house and use agencies for specific functions like PPC or creative.