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Working with Agencies

How to hire, price, and manage an Amazon agency. Contracts, fees, build versus buy, and what good account management looks like. Page 76.
Flapen cover for Pay per performance Amazon PPC management: a Flapen operator and a client walking an aisle of cartons with a tablet
Working with Agencies

Pay per performance Amazon PPC management

Pay per performance PPC mostly pays on ROAS, which branded bidding inflates. Define performance as profit after ad spend, set the baseline, and cap the payout.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for KPIs to track for an Amazon agency engagement: a Flapen operator and a client walking an aisle of cartons with a tablet
Working with Agencies

KPIs to track for an Amazon agency engagement

Track five KPIs, conversion rate, ACoS or TACOS, organic rank on money keywords, return rate, and contribution margin per unit. Review weekly in writing.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for KPI-based contracts for Amazon account management: a client watching the Flapen photographer frame a product in the studio
Working with Agencies

KPI-based contracts for Amazon account management

Tie a KPI contract to contribution profit, organic rank on named keywords, and channel activation. Cap it at five, each with a source, window, and owner.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for Is Amazon brand management worth it for small brands: a client watching the Flapen photographer frame a product in the studio
Working with Agencies

Is Amazon brand management worth it for small brands

Brand management pays off when it can move more profit than it costs. At $800 a month for one product, it must find $800 in extra monthly profit to break even.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for How to structure bonuses for Amazon ad performance: a Flapen operator showing a client a sales chart beside an open proposal binder
Working with Agencies

How to structure bonuses for Amazon ad performance

Pay an ad bonus as a fixed share of incremental profit above a baseline, measured over a quarter, capped in dollars, and only while the account stays healthy.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for How to negotiate Amazon brand management contracts: a Flapen operator showing a client a sales chart beside an open proposal binder
Working with Agencies

How to negotiate Amazon brand management contracts

Negotiate five terms in order, notice period, account ownership, scope, supplier relationships, then price. Price comes last because the rest decide its worth.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for How long to break even with Amazon full-service agency: a Flapen operator walking a client through product samples at a factory table
Working with Agencies

How long to break even with Amazon full-service agency

Two clocks apply. An existing listing should pay back the fee in one to three months, a full brand launch closer to seven, so define break even in writing.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for How does Amazon ads performance pricing work: a Flapen operator walking a client through product samples at a factory table
Working with Agencies

How does Amazon ads performance pricing work

Write down the baseline, window, attribution setting, and target before any fee is tied to ACoS, TACOS, or ad revenue. Otherwise you pay for a definition.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for Global Amazon marketplace ROI differences: two Flapen operators and a client over a binder and a laptop at a meeting table
Working with Agencies

Global Amazon marketplace ROI differences

Marketplace ROI follows the traffic mix, not the flag. A small market running three of five channels beats a large one running two, so diagnose per country.
Joel Turcotte Gaucher

Joel Turcotte Gaucher

Flapen cover for Europe vs US Amazon agency payback comparison: two Flapen operators and a client over a binder and a laptop at a meeting table
Working with Agencies

Europe vs US Amazon agency payback comparison

Payback depends on how many marketplaces one fee must cover. The US is one large market, Europe is several small ones, so take one country to profit first.
Joel Turcotte Gaucher

Joel Turcotte Gaucher