How to evaluate the performance of your Amazon agency?
The performance of your chosen agency ensures you’re getting the best value for your investment. These objectives should be specific, measurable, achievable, relevant, and time-bound (SMART). Whether increasing sales by a certain percentage, improving organic rankings, or enhancing brand visibility, having concrete targets allows you to gauge the agency’s effectiveness more accurately.
Tracking key performance indicators (KPIs)
To objectively assess your agency’s performance, you must monitor relevant KPIs. Some essential metrics to track include sales growth, conversion rate, organic search rankings, advertising performance, and customer reviews and ratings. Regularly reviewing these KPIs lets you gain insights into the agency’s impact on your Amazon business.
Analyzing listing optimization
One of an Amazon agency’s primary responsibilities is optimizing your product listings. Evaluate the quality of their work by examining product titles, bullet points, product descriptions, and images. Compare your listings before and after the agency’s involvement to assess the improvements made.
Assessing inventory management
Effective inventory management is crucial for Amazon’s success. Your agency should help you maintain optimal stock levels to avoid stakeouts or excess inventory. Evaluate their performance by looking at stock out frequency, inventory turnover rate, and storage fees.
Reviewing advertising strategies
Many Amazon agencies offer advertising management services. To assess their effectiveness in this area, consider ad campaign structure, keyword performance, budget utilization, and return on investment (ROI) in advertising. Compare your advertising performance before and after engaging the agency to determine if they add value in this area.
Evaluating customer service and support
Your agency’s customer service and support level can significantly impact your overall experience. Consider factors such as response time, problem-solving abilities, proactivity, and communication quality. A strong agency partnership should be an extension of your team, providing reliable support and expertise when needed.
Comparing results to industry benchmarks
Comparing your agency’s performance to industry benchmarks can help put your agency’s performance in context. Look for data on average conversion rates, ad performance, and sales growth in your product category. This comparison can help you understand whether your agency excels or meets basic standards.
What is an Amazon expert? An Amazon expert is a professional with extensive knowledge and experience in navigating the complexities of selling on the Amazon platform. These individuals deeply understand Amazon’s algorithms, policies, and best practices for optimizing product listings, managing inventory, running effective advertising campaigns, and improving overall marketplace performance.
Conducting regular performance reviews
Schedule annual performance reviews with your agency, such as quarterly or bi-annually. These reviews provide an opportunity to discuss achievements, challenges, and improvement areas and realign goals and strategies for the upcoming period.
Seeking feedback from team members
Gather their feedback if multiple people from your organization interact with the agency. Different perspective electives can provide a more rounded view of the agency’s performance. Consider aspects like communication, responsiveness, and the overall working relationship.
A good Amazon agency should stay up-to-date with the latest trends, algorithm changes, and best practices in the e-commerce industry. Evaluate their ability to provide insights and recommendations based on current market conditions and emerging opportunities.
