September 12, 2023
August 5, 2022
The world of Amazon is in a permanent state of flux, but one thing remains constant for the brands that sell and advertise on it: Amazon is unlike any other company they work with. Companies that are used to wholesaling their goods to established, predictable and streamlined retailers in a “set and forget” way are in for a rude shock.
Those that treat it like any other sales channel (or advertising platform, streaming network, logistics business, consumer electronics maker; the list goes on) soon find themselves dealing with an ever-growing list of challenges, while their better-prepared competitors win their customers and sales.
It’s no surprise, therefore, that many brands enlist the help of an agency to help them navigate Amazon’s unique challenges, seek out opportunities, and transform Amazon into a truly profitable channel. From niche, boutique outfits that focus on specific areas of Amazon to giant advertising holding companies, there’s no shortage of agencies out there, so how do you know which one’s right for your brand?
Of course this article could be seen as self-serving but that’s not the intention. All too often we hear from brands that say “Amazon doesn’t work” whereas they, and their agency partner, were simply ill-equipped to drive success because they didn’t understand the plethora of synchronous specialist skillsets required.
Simply put, when making a decision on the right partner for you, you need to understand what each does, and learn to understand the difference between what they’ll tell you and what their true capabilities are. Our guide to the questions to ask a prospective agency will help you do exactly that.
Does your team understand Amazon retail or do you just focus on advertising?
Yes. We know everything, from inventory, pricing, 3rd parties and brand registry to stores, A+ content, and beyond.
Knowing the basics of retail operations just doesn’t cut it anymore. Understanding the foundations of selling on Amazon is important, but the most effective agencies work across all areas of Amazon. The relationship between retail and media is absolutely key (retail operations impact media performance and vice-versa), and surprisingly few agencies are capable of understanding and exploiting this. They’re just not designed to.
Large media agencies will tout their weight of ad spend and experience across Google and Facebook coupled with digital media expertise, but won’t have the first clue about retail operations, pricing elasticity, shipping plans, brand registry and supply chain. Niche Amazon agencies, on the other hand, will be laser-focused on specific areas rather than seeing the whole picture. Your agency should also have a clear connection with Amazon; ask the agency about their relationships with key people across different areas of the company.
What to ask next: Can you give me some before and after examples of your content, and some references from Amazon attesting to your retail capabilities? Can you confirm that all team members have achieved all Amazon certifications?
What kind of tools do you use to get an edge on Amazon?
We have a variety of tools that we use to drive sales and optimize performance. We prefer tools that integrate with Amazon as well as other platforms such as Google and Facebook.
Using the right technology is crucial; it can typically increase return on investment by more than 25%. Amazon doesn’t make it easy to use its tools but there are ways around that – namely, using third party tools. Right now there are dozens of tools available – including PacVue and Perpetua for search optimization, Sellics for retail analytics and SellerLabs for review optimization and analysis – so how do you know which ones to use? The answer is that your agency should be able to find the right tools for your brand and your needs. Some agencies may even have their own tools – at Podean, for example, we’ve developed the world’s first Amazon-specific channel- and tactic-planning tool, Journey, and a unique profitability tool and framework called PROPHET.
When your agency suggests that a tool that works for Google will work for Amazon they’re leading you down the wrong path. Many independent reviews have confirmed that Amazon’s specificity warrants specialist technology.
What to ask next: Can we have a video call where your team takes me through your tools and how you use them?
Does your agency have demonstrable experience and capabilities in every area?
We’ve delivered results for numerous clients, and have many years’ experience under our belts. We have a few shiny video case studies we can show you.
Succeeding on Amazon means optimizing absolutely everything from supply chain and operations to media and creative content. Your agency should have across-the-board capabilities, and be able to provide you with client references that support these claims. An Amazon agency’s team should consist of specialists and partners across the full spectrum of Amazon, not just specialists in one particular area or niche, and be able to speak to and work with people at all levels in an organization, from C-suite down. The right agency shouldn’t be afraid to challenge the way your organization thinks about and accommodates Amazon – after all, as we said at the beginning, Amazon is truly a different beast.
What to ask next: Do you have all capabilities (retail operations, content/creative, search, DSP, analytics) in one team and under one P&L? This avoids the agency “fighting” behind the scenes about the right strategy for you, and prioritizing tasks that make them the highest revenue/profit on your fees. What exactly were you responsible within those case studies?
Do you have the bandwidth and time?
Of course. We have the time, the tools and the tech. You’ll be our number one priority.
Multinational agency groups are structured by ‘swimlanes’ versus offering complete solutions. They’ll tell you that you’re a priority, but you won’t actually be one – especially because the remuneration is not on the level of big global brands and your needs are more complex and time consuming. You’ll be competing for attention, focus, P&L statements, and be subject to siloed measures of performance. Your agency should be flexible, committed to you, and work as a true extension of your team. The best agencies are global, too, with boots on the ground in different Amazon markets (Podean has local teams in North America, Europe, Australia and Middle East) to offer the ability to support a global Amazon presence – either now or in the future.
What to ask next: Can I meet the retail, media and account leads who will be working on my business day-to-day?
Do you have any questions for me about my business?
Nope, I think we’re good to get started here. We’ll send you a proposal as soon as we can.
Choosing an Amazon partner agency is like interviewing for a job – both parties want to see if they’re an ideal fit for one another. If your agency isn’t inquisitive, how are they going to know the ins and outs of your business? Your agency shouldn’t be striving to tell you exactly what you want to hear, but rather to come to you with tough questions and, in doing so, deliver meaningful results. One of the things we tell prospective clients is that, in the process of creating and delivering their Amazon strategy, we’re going to tell them things they don’t want to hear. A good Amazon agency knows they’re entering a partnership, and that succeeding on Amazon is hard work, demanding and requires an appetite to change. They’ll want to know that you’re as committed to Amazon as you want them to be to you and your business.
What to ask next: How can we make sure the team structure and remuneration aligns us to drive growth?
How will you gauge my brand’s success on Amazon?
We look at sales revenue, ROAS and ACOS. If sales are growing, and ROAS and ACOS are optimized, you’ll be on the right track. Actually our clients received a much lower ACOS when we took them over (look at this chart…)
Amazon and Amazon agencies have taught brands to focus religiously on sales, and advertising metrics like ROAS and ACOS. But sales doesn’t equal profit, and many brands – despite having high sales volumes and exemplary ROAS/ACOS – struggle to make Amazon a profitable channel. A really good Amazon agency will focus on profitability, by drilling down into every aspect of your brand’s presence on Amazon and extracting every last drop of profit with rigorous analysis and optimization. There’s no single route to profitability on Amazon – many workflows contribute, from your supply chain to your sales model – and the right agency should be able to identify areas for improvement and set your brand on a course for Amazon success. Which, as we say, means profit – not total sales or ROAS.
What to ask next: How can you ensure my Amazon sales are incremental and not just coming from other channels at an effective lower margin to me? What are the key profit drivers on Amazon for my business, and can you prioritize them across every touch/failure point?
Choosing an agency is a big decision and one that will have a significant impact on your sales on Amazon. But also remember Amazon is an ingrained part of the consumer shopping journey (reviews, comparisons, prices) so your Amazon presence impacts your reputation and sales across other retailers.
It’s very easy for agencies to bluff their way through some simple questions so it’s important to dive deep and truly interrogate their capabilities.
Rest assured that a media-focused agency isn’t the right one for you. Advertising drives a mere fraction of your sales and profits compared to the critical retail, operations and content capabilities needed to be successful on Amazon.
September 12, 2023
September 12, 2023
August 5, 2022
Emily…
James comes to Podean with a wealth of marketplace knowledge having worked at Amazon Corporate for 5+ years. He worked in many different roles and groups during his time there from Seller Support to Vendor Management. From recruiting and onboarding 3P sellers to new categories, handling highly escalated executive level contacts, and managing vendor relationships he brings an inside understanding of how Amazon works. James is passionate about online retail and brings a client and customer centered approach as the Head of US Retail Operations. Before his e-commerce focused life, James worked across industries that have always focused and delivered results in customer service, account management, and inventory management.
With more than 15 years of experience Alejandro has led some of the most edgy projects in the LATAM region and has built-up high-performance teams from both agency and brand sides. Working with Havas he put together a Consumer Engagement unit for Pepsi. He led a WPP digital solution for L’Oréal and while working with Mediacom he redesigned Coca-Cola’s media team. Most recently he was a fundamental part of Danone’s media transformation into a brand salience unit. He was born and raised in Mexico City, loves being outdoors, listening to music and spending time with his 7-year-old daughter.
Danielle leads media globally for Podean. She previously led the Amazon and e-commerce division at performance marketing agency, Merkle (part of Dentsu). Danielle has deep expertise across all facets of Amazon advertising – DSP, sponsored ads, audio, out of home and beyond. She has delivered significant growth for some of the world’s largest brands including Nestle, managing tens of millions of advertising spend on their behalf.
Before Podean, Travis Johnson was Founder and President of Dentsu’s Amazon-focused consultancy, Sellwin. Prior joining Dentsu he was Global CEO of Ansible Mobile in New York, and also held CEO positions in Australia for media agencies UM, Initiative and Cadreon. He was an Adweek Media Allstar in 2017 and has won over 50 International Awards across his career.
Maddie leads our client management team and also marketing for Podean. Maddie’s team operates as an extension of our client’s teams – anticipating their needs, thinking proactively, and always delivering on time. Maddie is also responsible for all aspects of Podean marketing, from blogs and email newsletters to PR, content, and advertising.
Lizzy manages the Podean media team across any, and every, media solution offered by Amazon and other marketplaces. Whether it’s search/sponsored ads, DSP display and video, Twitch, audio or activations we have the experts to deliver. Every client that her team has worked on has seen a step-change in media effectiveness and sales versus their previous operations.
Jonathan Hawkins leads Podean’s European operations, working with clients spanning all categories. His team assists brands with every aspect of setup and optimization across the region including supply chain advice, logistics, retail operations, analytics and media management. P Before joining Podean, Hawkins was Commercial Director of Square Up media, owners of media properties including Escapism, Foodism and Square Mile. During his decade at Square Up he led editorial, content and most recently commercialisation and sales with a focus on digital products and ecommerce growth.
We have hand-picked the best and brightest Amazon talent from around the USA and the world. Our delivery team of 6 New York based, and 17 Amazon and marketplace marketing specialists ensure our clients receive the best campaign performance. They are experts in retail management, performance media optimization, but also video, analytics, AMC, voice, creative and higher impact executions.
Ashley has covered all aspects of digital marketing in his career, having led digital media for Initiative Media Australia, then managed a team of cross-functional digital salespeople at Mi9 (MSN) and was most recently the Managing Director of ecommerce conversion optimization software company, Ve. Ashley’s leadership, collaboration skills and entrepreneurial spirit drive the Australian business.
Mark is a 20+ year digital leader and before Podean was EVP at Reprise where he successfully launched IPG’s Amazon Center Of Excellence. Prior to this, Mark led mobile and innovation agency Ansible. Earlier in his career he was the Founder and CEO of Concep, an email and performance marketing agency with offices in the UK, USA and Australia.
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