Amazon Agency vs. Automation Tools: What Actually Pays Off?

Many Amazon sellers wonder: is a bid automation tool enough, or do you need an agency? This article shows what really matters and where automated systems hit their limits.
Justin Froyland
February 2026
7 Minutes

Amazon PPC can be launched with a few clicks today. Leading bid automation tools make it easy to set up campaigns efficiently and deliver quick initial results. But is that enough?

As a specialized Amazon agency, we work with brands that have outgrown what automation alone can deliver. Anyone looking to take the next step quickly realizes: automation has limits. And this is exactly where the gap widens between one-size-fits-all approaches and real strategic performance optimization.

What Automation Tools Do Well, and Where They Fall Short

Tool providers offer automated PPC systems that optimize toward target ACoS or ROAS values. For many sellers, this is an attractive entry point: low effort, immediate results, a structured interface.

But these tools operate on rules, not market understanding. They scale based on historical data, but they do not know which keyword is strategically most valuable, which segmentation approach makes sense, or what market shifts are emerging.

Tools are instruments. They only work as well as the person operating them.

Where Many Amazon Agencies Fail

The term "agency" is not protected, and many providers ultimately just connect a software tool to your account. No strategic sparring, no testing, no differentiated campaign setup.

The client receives a solution that works exactly as well (or poorly) as the algorithm it is based on. The problem: these agencies look like a service but are effectively just an interface add-on.

What a Real Amazon Agency Does Differently

A truly high-performing Amazon agency uses tools but never blindly. It identifies which keywords to prioritize, when target-ACoS optimization falls short, and how to segment strategically to capture market share.

This means:

  • Active performance analysis and prioritization by conversion value
  • Manual testing of different campaign structures
  • Differentiated bidding at the SKU, search intent, or placement level
  • Direct adjustments to market changes such as seasonal effects or competitor movements

Tools execute. Agencies think ahead.

Mini Case Study: Why Tools Sometimes Hold You Back

A seller in the home and living segment came to us with a tool-based PPC setup. ACoS was stable at 23%. Solid. But revenue was stagnating, and market share was declining.

After a complete restructuring:

  • Manual segmentation by keyword intent
  • Focus on high-converting clusters
  • Deliberate overshoot of target ACoS for strategic top-of-search placements

Result: ACoS rose slightly to 27%, but revenue grew by 53% with +17% overall profit.

Tools would never have activated this lever. Why? Because they recognize the "how much" but not the "why."

Comparison: Tool Provider vs. Standard Agency vs. PCOStudio

CategoryTool ProviderStandard AgencyPCOStudio
Setup EffortMinimalMediumCustom-built
StrategyNonePartialComprehensive and data-driven
PersonalizationNoneLowHigh
Tool ExpertiseHighMediumHigh
Manual OptimizationNoRarelyYes, continuously
Market IntelligenceMissingLimitedIntegrated
Target AudienceDIY sellersMid-size sellersBrands with scaling ambitions

Frequently Asked Questions

Is a tool not cheaper than an agency?

Yes, but with a caveat: many agencies simply connect a tool and then charge multiples of what the software itself costs. Often 50% or more of the agency fee flows directly to the tool provider without any strategic added value.

How do I spot a fake agency that just uses tools?

Ask these questions in the initial call: Do you use automation tools? If so, which ones? What do you do manually? Do you have a proprietary rule set? Who makes strategic decisions? If clear answers are missing, proceed with caution.

What does a good Amazon agency actually cost?

High-performing agencies typically start around 4,000 EUR per month, depending on revenue potential, profit targets, and scope of service. A good agency is not an expense. It is a revenue lever.

Can I keep using tools alongside an agency?

That rarely makes sense. Either you steer yourself with a tool, or you hand over responsibility. Running both in parallel leads to conflicts and inconsistency in campaign management.

Conclusion

Automated tools take you to a certain point. Beyond that, the quality of your strategy decides everything, not the algorithm.

If you want to talk to real experts who understand tools but still think strategically, talk to us.

Questions about your Amazon strategy?

We manage brands with over €300 million+ in sales on Amazon. Let's talk.

Justin Froyland
Co-Founder & Head of Design Department