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Hiring the wrong Amazon agency doesn't just fail to deliver results. It actively damages your brand.
A bad agency burns through your ad budget without improving ACoS. They run the same cookie-cutter playbook for your supplement brand that they use for hardware sellers and apparel brands. They lock you into 12-month contracts with hidden auto-renewal clauses. They rotate your account manager every quarter so no one ever learns your business. They report vanity metrics (impressions, clicks) while your profit margin collapses.
The cost compounds: bad agency work doesn't reset to zero when you fire them. It leaves behind ad account history that drags down your Quality Score. It creates listing optimization debt. It kills momentum in your most important selling season. You lose 6 to 12 months and spend $30K to $100K+ before you realize the partnership isn't working.
Most brands interview three to five agencies before signing. Most seller forums on Reddit are full of stories about agencies that overpromised, underdelivered, and disappeared after cashing the retainer checks. The pattern repeats because most brand owners don't know what questions to ask or what warning signs to watch for.
This guide walks through 10 specific red flags, a due diligence checklist, and the questions you should ask on your first call with any Amazon agency.
10 Red Flags That Signal a Bad Amazon Agency
1. They Guarantee Specific Sales Numbers or Rankings
No agency controls Amazon's A10 algorithm. Page-one rankings depend on dozens of factors: click-through rate, conversion rate, review velocity, price competitiveness, inventory availability, seller authority, and more. An agency can influence some of these variables. They can't guarantee outcomes.
What this looks like in practice:
An agency pitches "We'll get you to page one for [keyword] in 60 days, guaranteed." Or "We'll triple your revenue in the first quarter." These are fundamentally dishonest claims. Amazon's algorithm weighs factors the agency doesn't control (your product reviews, your pricing vs. competitors, your in-stock rate). If an agency makes these guarantees, they're either lying or they don't understand how Amazon works.
What honest goal-setting looks like:
Good agencies set expectations in ranges with clear dependencies. "Based on your current review count, price positioning, and competitive set, we'd expect to see 15–30% revenue growth in the first 90–120 days if we execute on PPC optimization, listing improvements, and inventory planning. Here's what could accelerate that timeline and what could slow it down."
They present scenarios, not guarantees.
2. Cookie-Cutter Packages With No Category Strategy
If an agency offers Bronze/Silver/Gold tiers with fixed deliverables, that's a signal they're running a commodity service, not building custom strategies.
What this looks like in practice:
Bronze tier: $3,000/mo for PPC management + quarterly listing audit. Silver tier: $6,000/mo for PPC + monthly listing optimization + A+ content refresh. Gold tier: $10,000/mo for "full-service management."
These tiers don't account for category-specific competitive dynamics. Supplement brands face different challenges than hardware sellers. Apparel has different seasonality and return patterns than home goods. A good strategy for a $2M/year established brand looks nothing like the right approach for a $200K/year new entrant.
Cookie-cutter packages mean the agency is optimizing for internal efficiency (easier to onboard and manage if everyone gets the same treatment), not for your results.
What custom strategy looks like:
A good agency builds your plan after analyzing: your category's competition, your current organic and paid rank positions, your review profile vs. top competitors, your pricing strategy, your inventory turns, your profit margins. The deliverables vary based on where you are and where the biggest opportunities sit.
3. They Won't Show You Where Your Ad Spend Goes
You should have direct access to your Amazon Advertising Console. You should be able to log in and see every campaign, every keyword, every dollar of spend and the return it generated.
What this looks like in practice:
Some agencies run campaigns under their own Amazon Ads account and provide only summary reports. You can't see keyword-level data. You can't verify their claims about what's working. You can't export your historical campaign data if you decide to leave.
This is a control issue. If the agency won't give you access to your own ad account, they're either hiding poor performance or they're worried you'll realize you could run these campaigns in-house.
What transparent reporting looks like:
The agency sets up campaigns inside your Amazon Ads account (or gives you admin access if they run them through a consolidated dashboard). You receive weekly or biweekly reports that include: keyword-level ACoS, placement breakdowns (top of search vs. product pages vs. rest of search), new keyword recommendations with search volume and competition data, budget pacing, and TACoS (Total Advertising Cost of Sale, which includes organic sales influenced by ads).
You're never locked out of your own data.
4. No Case Studies, No References, No Proof
An agency with real results can show proof. Anonymized case studies with before/after metrics. Client references you can actually call. Portfolio examples that demonstrate category expertise.
What this looks like in practice:
The agency's website has testimonials but no numbers. Or they claim "confidentiality agreements prevent us from sharing specifics." Or they point to their Amazon Ads Partner Network badge as the only credential.
The Amazon Ads Partner badge verifies they've completed Amazon's training and meet minimum ad spend thresholds across their client base. It doesn't verify results. It's table stakes, not proof of competence.
What good proof looks like:
Case studies with specifics: "Supplement brand, $1.2M/year revenue at start, increased to $2.1M in 12 months. ACoS dropped from 38% to 24%. Organic rank for primary keyword improved from position 18 to position 4." Anonymized but detailed.
References from brands in your category or adjacent categories who can speak to the agency's communication cadence, strategic depth, and ability to execute.
Portfolio samples: "Here are three A+ content pages we built. Here's a Sponsored Brand video campaign creative we produced."
5. Communication Goes Dark After Onboarding
A pattern: heavy engagement during the sales process and first 30 days, then radio silence.
What this looks like in practice:
You get weekly calls during onboarding. The salesperson who closed the deal is very responsive. Then you're handed off to an account manager. The calls shift to biweekly, then monthly, then "let's touch base when we have updates." You send questions via email and wait three to five days for responses. The account manager is juggling 40+ brands and doesn't have time for proactive strategy discussions.
This is the "set it and forget it" trap. The agency onboards you, launches campaigns, then coasts. No ongoing testing. No competitive monitoring. No adaptation when Amazon changes policies or when your category gets more crowded.
What good communication looks like:
Weekly or biweekly optimization calls (depending on your ad spend and complexity). Proactive updates when Amazon announces platform changes that affect your strategy. A dedicated Slack channel or shared dashboard where you can ask questions and get same-day or next-day responses. Monthly strategy reviews where the agency presents performance data, new opportunities, and recommendations for the next 30 to 90 days.
6. Their Pricing Model Rewards Spend, Not Results
How an agency charges you determines what they're incentivized to do.
What this looks like in practice:
Percentage of ad spend model (10–20% of spend): If you spend $10,000/mo on ads, the agency earns $1,500/mo. If they recommend increasing your budget to $30,000/mo, their fee jumps to $4,500/mo. They're incentivized to increase spend, not improve efficiency. Your ACoS might climb from 22% to 40%, but the agency makes more money.
Percentage of revenue model (10–20% of total Amazon revenue): The agency earns more when your topline grows. Sounds good, but it incentivizes chasing revenue over profit. They might push you to lower prices or run aggressive promotions that boost sales volume but destroy your margins.
Flat fee with no performance accountability: You pay $5,000/mo regardless of results. The agency has no incentive to push harder after the first few months.
What aligned pricing looks like:
Hybrid models work best: a base fee (covers strategic work, reporting, ongoing optimization) plus performance bonuses tied to specific KPIs (ACoS improvement, organic rank gains, profit margin targets). Or flat fee with clear deliverables and quarterly reviews tied to retention.
Custom pricing (not percentage of spend) signals the agency is optimizing for your outcomes, not their own revenue.
7. They Don't Know Amazon's Current Platform
Amazon's advertising platform changes constantly. New ad formats launch. DSP (Demand-Side Platform) access expands. Amazon Marketing Cloud (AMC) becomes more accessible. Brand Tailored Promotions add new capabilities. Campaign Manager consolidates ad management.
What this looks like in practice:
You ask the agency about AMC (Amazon Marketing Cloud, which provides audience insights and attribution analysis). They say "We don't use that" or "That's only for enterprise brands." Wrong. AMC access expanded significantly in 2025–2026. If an agency doesn't know how to use it, they're behind.
You ask about Sponsored TV or streaming ads. They say "We focus on search." That's fine if your category doesn't benefit from video, but it's a problem if they're unaware these formats exist.
You mention a recent Amazon policy change (FBA fee structure, inbound placement fees, regional fulfillment changes). They haven't heard about it.
These are signals the agency is running 2021 or 2022 playbooks and hasn't kept up with platform evolution.
What current expertise looks like:
The agency can discuss: AMC and how they use it for attribution, DSP campaigns and when they're appropriate, Sponsored Brand video best practices, A+ Premium Content (if applicable to your category), Amazon's Supply Chain by Amazon logistics program, recent fee changes and how they affect unit economics.
They read Amazon's Seller Central and Advertising Console release notes. They adapt strategies as the platform evolves.
8. Overloaded Account Managers Juggling 50+ Brands
Your account manager's bandwidth determines how much strategic attention your brand actually gets.
What this looks like in practice:
You're assigned an account manager. You learn (directly or through inference) that they're managing 40, 50, or 60+ brands. Math: if they work 40 hours/week and manage 50 brands, that's less than one hour per brand per week. Subtract internal meetings, reporting, and administrative work. Your brand gets 30 to 40 minutes of actual strategic thought per week.
That's enough time to review dashboards and make basic bid adjustments. It's not enough time to analyze competitive movements, test new keywords, improve product detail pages, plan promotional calendars, or solve complex issues (suppressed listings, policy violations, catalog errors).
What adequate bandwidth looks like:
Ask directly: "How many brands does my account manager handle?" A healthy ratio is 10 to 20 brands per manager, depending on complexity and ad spend. Brands spending $50K+/mo on ads should have a dedicated senior strategist, not a coordinator managing 40 accounts.
Also ask: "Who's my backup if my account manager is unavailable?" Good agencies have team coverage, not single points of failure.
9. Long-Term Contract Lock-Ins With No Performance Clauses
Contracts protect both parties, but they shouldn't trap you in a failing partnership.
What this looks like in practice:
12-month contract with a 90-day cancellation notice requirement. If you decide to leave in month 6, you're locked in through month 9 (because of the notice period). Some contracts also include early termination fees: three months of remaining fees if you cancel before the term ends.
Worse: auto-renewal clauses buried in the fine print. The contract auto-renews for another 12 months unless you provide written notice 60 or 90 days before the anniversary date. Miss the window and you're locked in for another year.
These terms benefit the agency, not you. They reduce the agency's churn risk but remove accountability. If performance drops after month 3, you're stuck paying for months of poor results.
What reasonable contract terms look like:
Month-to-month agreements (preferred for new partnerships) or 3- to 6-month initial terms with performance reviews at the end. If the agency insists on 12 months, push for performance-based exit clauses: "If ACoS exceeds [X]% for two consecutive months, either party can terminate with 30 days' notice." Or "If revenue doesn't increase by at least [Y]% in the first 6 months, client can exit without penalty."
Clear cancellation terms: 30-day notice, no early termination fees. No auto-renewal without explicit opt-in.
10. Vanity Metrics in Reports, No Actionable Insights
Impressions and clicks don't pay your bills. Profit does.
What this looks like in practice:
Monthly reports show: "Your ads generated 2.3 million impressions this month, up 18% from last month. Total clicks: 47,000, up 12%." The report is full of charts. It looks impressive. But it doesn't tell you if the campaigns are profitable. It doesn't tell you which keywords are driving actual sales vs. burning budget. It doesn't tell you how your organic rank changed or whether your market share grew.
Vanity metrics make the agency look busy without demonstrating value.
What useful reporting looks like:
Reports that include:
- Revenue (total and by campaign type: Sponsored Products, Sponsored Brands, Sponsored Display)
- ACoS and TACoS (Total Advertising Cost of Sale, which accounts for the halo effect of ads on organic sales)
- Organic rank movement for your top 5 to 10 target keywords
- Contribution margin impact (if the agency has access to your COGS data)
- Specific recommendations: "We're seeing high ACoS on [keyword]. Recommend testing lower bids or pausing. We're seeing strong conversion on [keyword] with low competition. Recommend increasing budget here."
- Competitive intel: "Competitor X launched a new product in your category. Here's their positioning and how we plan to respond."
Good reports tell you what happened, why it happened, and what the agency is doing next.
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Connect With Our TeamHow to Actually Vet an Amazon Agency (Due Diligence Checklist)
Most brands jump from the first sales call to signing a contract. That's a mistake. Here's the step-by-step due diligence process:
Step 1: Verify Amazon Ads Partner Network status
Go to Amazon's partner directory (advertising.amazon.com) and search for the agency. Check their verification tier. This confirms they meet Amazon's minimum criteria and have access to agency-level tools. It doesn't prove quality, but it's a baseline check.
Step 2: Request anonymized case studies in your category
Ask: "Do you have case study examples from [your category or adjacent category]?" If they say no, ask why. If they work exclusively with different categories, that's not necessarily disqualifying, but it means they'll need more time to learn your competitive environment.
Step 3: Ask for client references
Request two to three references from current or past clients. Ideally brands at your revenue scale or slightly larger. Call them. Ask: "How responsive is the team? How often do you communicate? Have you hit the goals you set together? If you had issues, how did the agency handle them? Would you hire them again?"
Step 4: Review their contract terms before the sales call ends
Don't wait until signing to review the agreement. Ask for a sample contract during the evaluation phase. Red flags: long lock-in periods, auto-renewal clauses, vague deliverables, ad spend minimums baked into fees, IP ownership restrictions (some agencies claim ownership of A+ content or creative assets they produce).
Step 5: Ask about account manager bandwidth
"How many brands will my account manager handle? What's their background? Will I work with the same person throughout the partnership, or is there turnover?"
Step 6: Request a sample report
Ask: "Can you show me an example of the monthly reports your clients receive?" This reveals whether they report vanity metrics or actionable data.
Step 7: Understand the pricing model incentives
Ask: "How do you charge, and how does that pricing model affect the recommendations you make?" A good agency will acknowledge the incentive structure and explain how they balance it (e.g., "We charge a flat fee to avoid the conflict of interest in percentage-of-spend models").
Step 8: Test their Amazon platform knowledge
Ask specific questions: "How do you use Amazon Marketing Cloud?" "When do you recommend DSP vs. Sponsored Products?" "What's your approach to Brand Tailored Promotions?" If they can't answer or deflect, they're not keeping up with the platform.
Step 9: Clarify what you own vs. what the agency owns
Ask: "If we end the partnership, do we retain access to all campaign data, creative assets, and listing optimizations? Or do we lose access to anything?" Make sure you're not locked into proprietary tools or losing ownership of work you paid for.
Step 10: Set a trial period or performance review milestone
Propose: "Let's start with a 3-month trial, then review results before committing to a longer term." Or "Let's agree on specific KPIs for the first 6 months, with a performance review at month 6 to decide if we continue." De-risk the partnership upfront.
10 Questions to Ask on Your First Call With an Amazon Agency
Use this as your evaluation card:
- How many Amazon brands are you currently managing, and what's the average account manager workload?
- Can you show me case studies or results from brands in my category? What were the before/after metrics?
- What's your pricing model, and how does it align your incentives with my profit goals?
- What does your typical reporting package include? Can I see a sample report?
- How often will we communicate, and who will I be working with directly?
- Do I get direct access to my Amazon Advertising Console, or do you run campaigns under your account?
- What Amazon tools and features do you use regularly? (AMC, DSP, Brand Tailored Promotions, etc.)
- What are your contract terms? Month-to-month or annual? Auto-renewal? Cancellation notice period?
- If we end the partnership, what do I keep vs. what do I lose access to? (campaign data, creative assets, listing optimizations)
- Can you provide two to three client references I can speak with?
What a Good Amazon Agency Looks Like
After 10 red flags, here's the positive case: what separates strong agencies from weak ones.
Custom strategy built on your data
They don't pitch a package. They audit your current state (listings, ads, reviews, pricing, competitive position) and build a plan specific to your category, brand maturity, and goals. The strategy for a new product launch looks different from the strategy for an established brand defending market share.
Transparent reporting with access to your accounts
You have admin access to your Amazon Ads account. You can log in anytime and verify what they're telling you. Reports include actionable insights, not just vanity metrics. You see keyword-level performance, competitive intel, and specific recommendations for the next 30 days.
Proactive communication cadence
Weekly or biweekly optimization calls. Monthly strategy reviews. Immediate alerts when Amazon makes policy changes that affect your brand. A shared Slack channel or project management tool where you can ask questions and get same-day responses.
Amazon-specific expertise, not generic digital marketing
The team knows the difference between Seller Central and Vendor Central. They understand flat file uploads and catalog management. They know how Brand Registry works and what tools it unlocks. They can discuss AMC, DSP, Sponsored TV, and Amazon Attribution. They follow Amazon's advertising release notes and adapt strategies as the platform evolves.
This isn't "digital marketing agency that also does Amazon." It's Amazon specialists who live in the platform daily.
Aligned incentives through performance-based or hybrid pricing
They don't charge a percentage of ad spend (which incentivizes increasing spend, not efficiency). They structure pricing to align with your goals: flat fee, hybrid (base + performance bonuses), or custom retainer tied to clear deliverables. They acknowledge the incentive structure and explain how they avoid conflicts of interest.
Retention rate as a signal
Ask: "What's your client retention rate?" Good agencies retain 80–90%+ of clients year-over-year because the partnership works. High churn (clients leaving after 6–12 months) signals poor results or mismatched expectations.
Frequently Asked Questions
How do you know if an Amazon agency is bad?
Watch for these top three warning signs: (1) They guarantee specific sales numbers or page-one rankings. No one controls Amazon's algorithm. (2) They offer cookie-cutter Bronze/Silver/Gold packages instead of building custom strategies. (3) They won't give you direct access to your Amazon Advertising Console. If you see any of these, pause and ask more questions before signing.
What should you look for when hiring an Amazon agency?
Look for: custom strategy built on your data, transparent reporting with account access, proactive communication cadence (weekly or biweekly calls), Amazon-specific expertise (not just "digital marketing"), aligned pricing (not percentage of ad spend), and case studies with real numbers from brands in your category. Ask for client references and actually call them.
How much does a good Amazon agency cost?
Pricing varies by model and scope. Flat-fee agencies typically charge $2,000 to $15,000+ per month depending on ad spend, catalog size, and services included. Percentage-based models range from 10–20% of ad spend or 10–20% of total Amazon revenue. Hybrid models (base fee + performance bonuses) often start at $3,000 to $8,000/mo base. Brands doing $30K to $50K/mo or more in Amazon revenue typically hit the ROI threshold where an agency makes sense.
Can an Amazon agency guarantee sales results?
No. Honest agencies set expectations in ranges with clear dependencies (e.g., "We'd expect 15–30% revenue growth in 90–120 days based on your current position, assuming we execute on PPC, listing optimization, and inventory planning"). They can't guarantee specific numbers because Amazon's algorithm weighs factors outside their control: your review velocity, your price vs. competitors, your in-stock rate, your product-market fit. If an agency guarantees a 3x revenue increase or page-one rankings, they're lying or they don't understand Amazon.
Should you sign a long-term contract with an Amazon agency?
Prefer month-to-month agreements or 3- to 6-month initial terms with performance reviews. If an agency requires 12 months, negotiate performance-based exit clauses (e.g., "If ACoS exceeds [X]% for two consecutive months, either party can cancel with 30 days' notice"). Watch for auto-renewal traps and long cancellation notice periods (60–90 days). Avoid early termination fees unless there's a clear performance floor the agency commits to hitting.
Find an Amazon Agency That Earns Your Trust
SupplyKick has managed $100M+ in Amazon revenue with 13+ years of marketplace expertise. No lock-in contracts. No vanity metrics. Just results.
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