Where Do Amazon Agencies Go Wrong?

April 1, 2022 Chuck Kessler

Where Do Amazon Agencies Go Wrong?

As Amazon Becomes More Sophisticated, Can Machine Learning and Algorithms Really Replace Human eCommerce Wisdom and Strategy?

Amazon is a wildly popular platform for sellers and shoppers alike. The Amazon FBA (Fulfillment by Amazon) program makes things even more interesting.

You sell it, Amazon ships it. What’s not to like? Taking full advantage of Amazon FBA, many sellers have made quick work of scaling their businesses.

Over the last few years Amazon’s marketplace has really begun to mature. It’s more important than ever to have an Amazon marketing strategy in place.

Increasingly, sellers on the Amazon platform are relying on account management agencies and Amazon PPC consultants to help them to continue to grow their businesses.

Unfortunately, as befitting the eCommerce money grab that the Amazon marketplace has become, a lot of inexperienced management agencies have rushed in to fill the void.

It’s a little like how the eCommerce explosion had led to large numbers of ‘Amazon aggregators’ attempting to buy up Amazon businesses (often with the help of Fintech investments).

Unfortunately for those same investors, many Amazon aggregators have a lot more enthusiasm than they do Amazon-selling experience.

eCommerce Enthusiasm Will Only Get You So Far

Getting started selling on Amazon is easy. However, it can quickly become complicated. The ever-increasing number of sellers is forcing everyone to level up their business game and take eCommerce seriously.

Just because you’re working from a laptop doesn’t mean you shouldn’t treat it as seriously as a “brick and mortar” business. If anything, given the rapidly-changing nature of eCommerce, it’s more important than ever to follow procedures and develop solid SOPs (Standard Operating Procedures).

That’s why a lot of sellers might reach out to an Amazon management agency for help.

SaaS (Software as a Service) to the Rescue

At the end of the day, it comes down to time.

Selling on Amazon, like parenting, studying at night for a college degree, or keeping in shape, is all about time management.

An Amazon account management agency usually deals with this through a bunch of automated software. I love cool new software as much as the next guy. Every time I upgrade the firmware on my iPhone I’m halfway expecting the latest update to allow my phone to make my morning cappuccino for me.

Admit it, with a world full of people willing to put their lives in the hands of Tesla’s autonomous driving technology, we’re clearly fans of advanced software.

Why Do Amazon Sellers Need to Use Software?

Amazon sellers might not really NEED software for their first product. It’s when business picks up and they begin to scale, that eCommerce technology becomes their friend.

Let’s say you had success with your first product. A lot of Amazon sellers might be tempted to try to use software to take a closer look at their digital marketing wins to try to repeat them.

Are you seeing your sales start to drop? Software can help you investigate your competitors, to see who, and why they’re cutting into your profits. Or, you can use A/B testing to determine better images or copy in your Amazon marketing efforts.

Let’s not forget about Amazon PPC (pay per click) advertising. For a lot of new sellers, trying to fine tune their Amazon PPC management, automated ads help them to hit the ground running.

Automated PPC Advertising

PPC automation allows sellers to control their Amazon advertising campaigns with eCommerce software. The software takes advantage of machine learning and algorithms to do a lot of the entrepreneurial heavy lifting for you. It’s a big time saver for Amazon sellers.

Amazon PPC management software makes it easier for new sellers to optimize their digital marketing. It also saves them the time that they’d otherwise need to put into learning the finer points of bids, timing, and ad campaign strategy.

You know how important it is to launch your Amazon product with a lot of momentum. A lot of very smart Amazon sellers advise that Amazon-selling software makes it possible for newer sellers to get a head start with their PPC, and hit the ground running.

Are Amazon Listings Written by AI Software a Good Thing?

If you spend enough time listening to eCommerce experts, one of the first things that you’ll hear is that as you begin to scale up your Amazon business, you need to learn to delegate. Work smarter, not harder. What’s your time worth? You don’t want to be the smartest person in the room, etc, etc.

These are all nice catch phrases, but when it comes to Amazon SEO, is it true? Should you delegate this to a robot?

An AI-optimized listing might be fine for an Amazon seller just starting out. However, as the eCommerce ecosystem grows, search engine optimization battles will only become more competitive. That’s why human input will continue to be the difference between a brand that makes money, and one that falls by the wayside.

 

What a Lot of Agencies Get Wrong

Many agencies that have jumped into the eCommerce space do so with the same degree of excitement as newer Amazon sellers. In doing so, they end up taking advantage of many of the same tools and strategies that brand new Amazon sellers use to get started.

Artificial intelligence copywriting, Upwork photographers, and fully automated PPC account management allow Amazon agencies (many of them new to eCommerce) to get up to speed quickly.

Levi Strauss became one of the success stories of the late 19th century gold rush with well-built work clothing for those working in the mines. Now, Amazon has become a sort of 21st century gold rush.

SaaS companies such as Helium 10, Jungle Scout, CopyAI, and Anyword have made a lot of money equipping Amazon sellers and Amazon management agencies alike. 

But, here’s the big problem with this.

Amazon’s Marketplace is Reaching Maturity

That maturity has made it a little harder for everyone to be successful. If you listen to eCommerce podcasts, you’ll often hear the phrase, “treat selling on Amazon like a real business.”

This is a good thing.

The old, ‘everything goes,’ wild-west days of Amazon when sellers could simply buy reviews are thankfully (for the most part) in our rearview mirror.

What’s happened now is that everything from your Amazon listing optimization to your PPC advertising requires an increased level of sophistication to scale past a certain level.

This is where SaaS software can be a double edged sword. Amazon management agencies (and sellers) need to have the depth of experience to know what part of the work they should trust a robot to do.

Unfortunately, newer agencies have a habit of trusting artificial intelligence a little bit too much.

CANOPY Does Amazon Agency Differently

Don’t get me wrong, CANOPY Management isn’t technology adverse. In fact, CANOPY was behind the development of PPC Scope, one of the first (and still best) Amazon-selling software tools.

The difference is this: CANOPY uses software to free up the bandwidth of our Amazon-selling experts. To lapse into a football analogy, most agencies are in deep zone coverage. CANOPY Management isn’t simply man-on-man, we have entire teams monitoring individual Amazon brands.

We love a good piece of technology as much as the next person. But, it’s a tool. Our most extraordinary resources are our teams of eCommerce experts that are producing amazing creative assets, fully optimizing listings, and closely monitoring custom PPC and Amazon DSP advertising campaigns.

Expert Skills are Required for Amazon DSP Advertising 

Amazon DSP (Demand-Side Platform) uses mined data to target (and retarget) shoppers once they’ve left Amazon’s marketplace.

Amazon DSP allows advertisers to really drill down to identify a specific audience. But, it takes a real Amazon expert with the ability to know how (and what) to track in order to effectively utilize the global eCommerce implications revealed by this shopper data.

Only a limited number of Amazon advertising agency experts are entrusted (by Amazon) with the privilege of working privately with their own high-level digital advertising option. CANOPY Management is one of them.

How CANOPY Management Can Help You In 2022

CANOPY Management is a “full service” Amazon Marketing Agency. When you take a look at the list of the ways in which CANOPY Management is able to help you grow your Amazon business, you’ll know why.  

  • Strategic Growth Planning
  • Listing Copywriting Optimization
  • Listing Photography
  • Product Videography
  • Amazon Advertising Management
  • Customer Service
  • Demand Side Platform (Amazon DSP)
  • Amazon Posts
  • Full Service Amazon Management
  • Amazon Review Aggregation

Are you looking to expand your income stream, or transition away from your primary career? It’s a new year and with the growth of eCommerce, now is a great time to reap some benefits yourself! 

Ready to Grow Your Amazon Business?

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Chuck Kessler

I'm a western Colorado based trail runner, climber, surfer, and adventurer who loves to write. My focus is on eCommerce and technology as the Content Manager and SEO Strategist at CANOPY Management.