Choosing a partner

Sell on Amazon Yourself, Hire an Agency, or Sell to a Reseller?

Yourself, agency, or reseller?
Short answer

There are three common ways to run a brand on Amazon. Doing it yourself gives you full control but takes time and skill. An agency does the work for a fee, but you still pay for inventory and risk. A reseller buys your products and sells them, so you pay no service fee, but you earn the wholesale price and share some control. The best choice depends on your time, your team, and how much control you need.

A note before we start: AceeNova works as a reseller-style partner, so we have a point of view. We try to be fair here, and we say when another way is the better fit.

The three ways

1. Sell it yourself

You create the seller account, send stock to Amazon, write the listings, run the ads, and answer customers. You can do it alone or with an employee.

2. Hire an agency

An agency manages the listings, the ads, or both. You still own the Amazon account and the inventory. You pay the agency a monthly fee, a share of sales, or both.

3. Sell to a reseller or distribution partner

The partner buys your products at a wholesale price and sells them on Amazon. They own the stock and run the Amazon side. You send them a price list and they send you purchase orders.

Side-by-side comparison

Sell yourselfAgencyReseller / partner
Who does the Amazon workYou or your teamThe agencyThe partner
Who owns the inventory on AmazonYouYouThe partner
How you payYour time, tools, staffMonthly fee or % of salesNo service fee
What you earn per unitFull retail margin, minus Amazon fees and adsRetail margin, minus fees, ads, and agency costThe wholesale price
Control of price and listingFullHigh, if you own the accountShared. Depends on your contract
Main riskSlow learning, no timeFees continue even if sales do not growLess control over price and pages if the contract is weak
Speed to startSlowestMediumOften fastest

Who each way fits

  • Sell yourself if you have a person with real Amazon skill and time, and you want every dollar of margin.
  • Hire an agency if you want to keep ownership of the account and stock, and you have the cash flow to pay a fee while sales grow.
  • Use a reseller or partner if you want to avoid the Amazon workload and the stock risk, and you accept a wholesale price in exchange.

You can also mix them. Some brands sell on Amazon.com themselves and use a partner in a market they do not know, such as Amazon Canada.

Protect your brand with a reseller

The weak point of the reseller model is control. A good partner will agree to written terms. Ask for:

  • A minimum price they will not go under
  • A clear list of the markets and products they cover
  • No selling to other third-party sellers
  • You keep Brand Registry and the brand rights
  • Regular reports on sales, ads, stock, and reviews
  • A clear way to end the deal

How to decide

Ask yourself three questions:

  1. Do I have the time and skills to run Amazon every week?
  2. Can I pay fees for several months before sales grow?
  3. How much control over price and pages do I need to protect my brand?

If you answer “no, no, not much,” a partner who buys your stock may fit best. If you answer “yes, yes, a lot,” selling yourself or using an agency may fit best. Before you sign with anyone, use our list of 10 questions to ask an Amazon partner.

FAQ

Should I sell on Amazon myself or hire an agency?

Sell yourself if you have the time and Amazon skill in your team. Hire an agency if you want to keep control of the account and can pay a monthly fee while sales grow.

What is the difference between an agency and a reseller?

An agency works for you for a fee and you keep owning the inventory. A reseller buys your inventory at a wholesale price, owns it, and sells it on Amazon, so you pay no service fee.

Do resellers pay a monthly fee?

In the reseller model, the partner earns from the difference between the wholesale price and the selling price. The brand does not pay a service fee. Always read the terms to be sure.

Will a reseller hurt my brand?

It can, if there is no written agreement. A strong contract that covers price, markets, listing quality, and an exit helps protect your brand.

Can I use more than one way at the same time?

Yes. Many brands sell themselves in one market and use a partner in another, or use an agency for ads only.

V
Written by Valentino Le. Founder of AceeNova, an Amazon distribution partner for brands, based in Calgary, Canada. This article is general information and not legal advice.