The costly lesson of mismanaged agency relationships can create quite the hit to your brand. Mike shares a raw account of how trusting an Amazon management agency without proper oversight created a perfect storm of inventory problems that coincided with tariff changes—a mistake that will have a significant cost.

Drawing from both perspectives—Mike as a brand owner who experienced the setback firsthand, and Jon as an agency owner who helps brands navigate Amazon—this conversation delivers crucial insights for anyone considering outsourcing their Amazon operations. The hosts dissect where things went wrong, revealing that the fundamental issue wasn't necessarily the agency itself, but rather the brand's approach of "abdication instead of delegation."

The episode introduces a powerful framework for evaluating agency performance: measuring inputs before outputs. During the first 2-3 months of an agency relationship, brands should focus on concrete actions being taken rather than final results. This means tracking whether promised campaign structures are being implemented, listing refreshes are being completed, and proper keyword segmentation is occurring. Only after this foundation is established should the focus shift to performance metrics.

Beyond tactical advice, the conversation challenges conventional wisdom about KPI selection. Why focusing solely on ACOS or ROAS can be misleading, as these metrics can be easily manipulated. Instead, they advocate for broader measures like TACOS (Total Advertising Cost of Sale) and contribution margin metrics that better reflect true business performance. Discover practical guidance on agency vetting, including interviewing multiple candidates, meeting the actual account manager who'll handle your business, and setting realistic timeframes for evaluation.

Whether you're considering hiring your first Amazon agency or looking to improve an existing partnership, this episode offers an invaluable perspective from those who've experienced both sides of the relationship. Avoid the costly mistakes that even experienced brands can make when navigating the complex world of Amazon management.

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