As an agency, you make money by selling time. Your account managers, strategists, and managers all operate by allocating time to each client—so the more time it takes to complete a task, the less profitable your agency is. And, subsequently, you have to charge your clients more.
Suddenly, what seemed to be a simple business helping brands sell on Amazon has turned into a financial nightmare, where you’re constantly trying to optimize your team and systems to account for the fact that selling on marketplaces is getting harder and more complicated.
We’re breaking down the real cost of Amazon complexity, and what your agency can do to reduce its impact on your business.
Increasing Complexity
Amazon has always been complex—its advertising, content, and fulfillment have always differed markedly from traditional retail or eCommerce.
But over the past few years, Amazon has rapidly accelerated in complexity thanks to the introduction of more data and reporting, more complicated data, and new tools like Amazon Marketing Cloud. While these additions have certainly made aspects of selling on Amazon easier, they have also added some hidden operational costs to marketplace growth.
Now, there’s so much more data to comb through, and it requires a greater understanding of the strategy necessary to actually move the needle towards profitability.
What It’s Costing You
The pace of innovation on Amazon is far too much for most agencies to keep up with; it requires an intense level of knowledge of the constantly changing Amazon landscape and a deep understanding of profit and loss. Because not only are you trying to make your clients profitable, you’re also trying to build a profitable business yourself!
All of these increased complexities can lead to inefficiencies in how your team services your clients. If your account managers are spending hours each week exporting and combing through clunky Amazon reports, that’s costing your agency precious time and money. Or, maybe your team is having to manually ensure that their clients’ aren’t losing the buy box or that their content wasn’t automatically updated by Amazon.
Not only does this waste your employees’ time, it also costs your clients money and reduces your ability to dedicate more time to creating and enacting effective strategies.
How Technology Helps
One of the most popular solutions that agencies turn to to combat this is adopting various technologies for managing all aspects of your business. Most Amazon tech is ads-only, or at the very least ads-heavy, leaving your agency to find solutions for every other aspect of your business—such as content, customer service, inventory, accounting, and more.
Kapoq is a different kind of Amazon ad tech that touches every area of your business, including:
- Advertising
- Inventory
- Content
- Accounting
- Analytics
- Customer experience
If you’re a full-service agency, you should invest in tech that can help your team become more efficient as Amazon continues to layer on more things you have to do to service your clients effectively.
Kapoq provides you real-time alerts, alerting you nearly instantly when your client loses the Buy Box, or if you’ll be subject to any upcoming fee and policy changes in regards to FBA. You can also easily calculate your profit and loss on Amazon, a notoriously difficult metric to come by without complex calculations.
Amazon agencies love Kapoq for its robust features; its ability to manage multiple brands, accounts, and marketplaces on Amazon; and the ability to pull executive-level reporting you can share with your clients.
Sign up for your free demo of Kapoq today to see how we can transform your agency!
