"Should we hire someone or use an agency?" is one of the most common questions we hear from brand owners. The honest answer is that both models can work, and both can fail. The difference usually comes down to costs that are not obvious on day one. This guide lays out the full picture so you can compare like for like.
We are an agency, so we have a perspective. We have tried to be fair: there are situations where an in-house team is the better choice, and we say so below.
What you are really paying for
Running Amazon well takes several distinct skills:
- Advertising management (Sponsored Products, Brands, Display)
- Keyword research and listing copy
- Design for images, A+ Content and Brand Store
- Account health, compliance and Seller Support cases
- Brand protection and catalog management
- Inventory planning and reporting
Whatever model you choose, these jobs have to be covered. The question is how.
The cost components of an in-house team
Direct costs
- Salaries for each role you hire, plus benefits and payroll taxes.
- Software: keyword research, analytics, reporting and design tools.
- Training and conferences to keep skills current.
Hidden costs
- Recruiting time: experienced Amazon specialists are hard to find, and an empty seat means lost growth.
- Ramp-up: even strong hires take months to learn your catalog and history.
- Management time: someone has to direct, review and develop the team.
- Coverage gaps: vacations, sick days and departures stop work.
- Turnover: when a key person leaves, knowledge and momentum leave with them.
- Skill gaps: one generalist rarely excels at ads, copy, design and operations at once, so freelancers fill gaps.
The cost components of an agency
Direct costs
- The agency's management fee, which may be fixed, tied to ad spend or sales, or a mix.
- Occasional project fees for things like new A+ Content or a product launch.
Hidden costs
- Your time for approvals, feedback and strategy calls.
- Onboarding: an agency needs time to learn your brand, though a good one has a structured process.
- Switching cost if it does not work out, which is why ownership and exit terms matter.
- Quality risk: a weak agency can waste ad spend for months before you notice.
The benefits side
In-house benefits
- Maximum control and day-to-day visibility.
- Deep focus on a single brand.
- Knowledge stays inside the company (as long as people stay).
Agency benefits
- A full specialist team from day one, not one generalist.
- Cross-account insight: agencies see what is working across many brands and categories in real time. We manage 60+ brands and $3M+ in monthly ad spend, which shapes every account.
- Continuity: no single person's departure stops the work.
- Tools and processes already in place.
- Easy expansion into adjacent channels like TikTok Shop.
A simple way to compare
List every role you need covered. For in-house, add up fully loaded salary costs for the people required to cover them well, plus software, management time and the cost of a vacancy. For the agency, add the fee and an estimate of your own time. Then compare not just cost but the coverage and quality each option realistically gives you. Many brands find that a single in-house hire costs a similar amount to an agency but covers far fewer skills.
When in-house wins
- Amazon is your largest channel and you can fund several specialists.
- You already have experienced e-commerce leadership to manage them.
- Your catalog or compliance needs require constant internal coordination.
When an agency wins
- You need expertise across the whole channel now.
- Your team is lean, or Amazon is one of several channels.
- You have lost momentum before when someone left.
- You want to add TikTok Shop without building a second team.
The hybrid option
For many growing brands, the best answer is both: an internal e-commerce manager owns strategy, approvals and cross-team coordination, while an agency handles specialist execution. You keep control and gain depth without hiring an entire department.
Questions to ask before deciding
- Which skills do we need covered, and who covers each today?
- What happened the last time a key person left?
- How much management time can we realistically give?
- Do we own all accounts, data and creative under either model?
- What would we need to see in 90 days to know it is working?
For a side-by-side table, see our Amazon agency vs in-house comparison. If you are evaluating agencies, read how to choose an Amazon PPC agency, or see what our Amazon account management covers.
A worked example (without numbers)
Picture a brand selling around a dozen products with one e-commerce manager who also handles Shopify and wholesale. Amazon ads get attention once a week; listings have not been updated in a year; A+ Content is basic. Hiring one Amazon specialist would help, but that person would still need design support, would take months to ramp up, and would leave a gap if they left.
In this situation, a hybrid usually wins: the existing manager stays the decision-maker and an agency covers PPC, listings, creative and account health. Compare that with a brand doing high volume on Amazon with a full e-commerce team. There, building specialist roles in-house may be the better long-term investment, perhaps using an agency for specific projects.
Red flags in either model
- No clear owner for Amazon results.
- No regular reporting on TACoS, conversion and organic rank.
- Accounts, data or creative owned by someone other than the brand.
- Decisions made on gut feel rather than data.
How to make an agency relationship work
- Name one internal owner who approves decisions and shares context quickly.
- Share margins, inventory plans and launch dates; agencies cannot set profit targets without them.
- Agree on a small set of success metrics, such as TACoS, conversion rate and organic rank, before work starts.
- Hold a monthly strategy review, not just weekly status updates.
- Keep ownership of all accounts, data and creative in your company's name.
How to make an in-house team work
- Hire for the skill gap that hurts most first, often advertising or listing creative.
- Budget for tools and training, not just salaries.
- Document processes so knowledge does not leave with one person.
- Bring in specialist help for projects like A+ Content or launches rather than stretching one generalist.
Either model fails without clear ownership, good data and a regular review rhythm. Get those right and both can succeed.
Key takeaways
- The right model depends on catalog size, budget, and how much expertise you have in-house.
- Hybrid setups, with an internal owner and an agency doing execution, work well for many growing brands.
- Whatever you choose, keep ownership of your accounts and data.
- Review the decision yearly as the business changes.
Frequently asked questions
Can we switch from an agency to in-house later?
Yes, if accounts, data and documentation stay in your name. Ask for a clear handover plan from the start.
Next steps
Write down your goals for the next twelve months, list the skills you have and the ones you lack, and estimate the true cost of each option, including management time. Then talk to two or three agencies and compare their plans with what an in-house hire could realistically deliver in the same period.