February 13, 2023
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The Amazon agency landscape in the United States is crowded. Hundreds of providers compete for sellers' attention, most of them following a remarkably similar playbook: aggressive outreach, impressive-sounding case studies, and monthly retainers that promise growth without much detail on how it will be achieved. It is a mature market with established norms, and for many sellers, switching agencies feels like swapping one version of the same service for another.
What fewer US sellers realize is that a growing number of European agencies are entering the American market, and they bring a fundamentally different approach. Shaped by different business cultures, smaller home markets, and the operational complexity of managing multiple European marketplaces simultaneously, these agencies operate with a methodology that often surprises American clients. The differences become visible when US sellers experience the European approach firsthand. One Amazon agency operating across both European and US marketplaces exemplifies a methodology shaped by tighter margins, smaller markets, and the operational complexity of managing multiple countries simultaneously.
So what exactly do European Amazon agencies do differently?
European Amazon markets are smaller than the US. Germany, the largest European marketplace, generates a fraction of the revenue that Amazon.com does. This means margins are tighter, budgets are smaller, and every euro of ad spend needs to work harder. European agencies learned early that gut-feeling decisions and loose campaign management do not survive in these conditions.
The result is a deeply analytical approach to Amazon management. European agencies tend to build their strategies around granular data analysis rather than broad playbooks. Campaign structures are designed for measurability from day one. Bid adjustments are made based on statistical significance, not arbitrary weekly schedules. And reporting focuses on metrics that matter for profitability, like TACoS and contribution margin per ASIN, rather than vanity metrics like total impressions or revenue growth without context.
When these agencies enter the US market, they bring this discipline with them. American sellers who are used to agencies that report on top-line revenue and ACoS often find that the European approach delivers a clearer picture of what is actually working and what is burning money.
Most US Amazon agencies operate in a single market. They know Amazon.com deeply, but their experience stops at the border. European agencies, by contrast, routinely manage accounts across five, eight, or even twelve marketplaces simultaneously. Germany, UK, France, Italy, Spain, Netherlands, Sweden, Poland, and increasingly the US.
This cross-market experience creates a strategic advantage that is hard to replicate. An agency that has launched the same product in seven countries understands how consumer behavior, keyword patterns, and competitive dynamics differ between markets. They know that a PPC strategy that works in Germany will fail in France. They have seen how pricing elasticity varies between the UK and Spain. They understand that listing optimisation is not translation but localisation.
For US sellers considering international expansion, this experience is directly valuable. But even for sellers operating only on Amazon.com, the pattern recognition that comes from managing diverse markets translates into more creative problem-solving and a broader toolkit for overcoming challenges.
The dominant pricing model among US Amazon agencies is a percentage of ad spend or a percentage of revenue. Both models create misaligned incentives. An agency earning a cut of ad spend benefits when the seller spends more, regardless of profitability. An agency earning a percentage of revenue benefits from top-line growth even if margins shrink.
European agencies more commonly use fixed retainer models or hybrid structures with a base fee plus performance bonuses tied to specific KPIs. This is partly cultural, as European business norms tend to favour predictable cost structures, and partly practical. In markets where margins are thinner, sellers push back harder against percentage-based models that scale with revenue but not with effort.
The advantage for clients is clearer alignment. A retainer-based agency has no financial incentive to inflate ad spend or chase unprofitable revenue. Their incentive is to deliver results that justify continued partnership. For sellers who have experienced the frustration of watching agency fees climb alongside ad budgets without proportional improvement in profitability, this model can be refreshing.
Running Amazon accounts across multiple European countries with different languages, VAT regimes, compliance requirements, and marketplace quirks demands operational discipline. European agencies have built systems and processes out of necessity that many single-market agencies simply do not need.
This shows up in practical ways. Structured onboarding processes that document goals, KPIs, and responsibilities before work begins. Standardized campaign naming conventions that make accounts auditable and transferable. Regular strategic reviews that go beyond reporting numbers and actually discuss direction. These are not revolutionary practices, but they are surprisingly uncommon in an industry where many agencies operate more like freelancers with a website than structured service businesses.
For sellers who have experienced agencies that lose momentum after the first few months or whose account managers change without proper handover, the process orientation of European agencies addresses a real pain point.
The differences between European and American Amazon agencies are not about one being better than the other. They reflect different market conditions that have produced different approaches to the same challenges. European agencies bring analytical rigor, cross-market perspective, transparent pricing, and process discipline. American agencies bring deep knowledge of the world's largest marketplace and a speed of execution that European firms sometimes lack.
For US sellers who feel they have outgrown their current agency or who are frustrated with a lack of strategic depth, exploring what European agencies offer is worth considering. The best fit may not be the agency with the flashiest case studies, but the one whose methodology aligns with how the seller wants to run their business.
They have to be. Operating in smaller, more fragmented European markets with tighter profit margins means every decision must be backed by solid data. They focus on deep profitability metrics rather than just top-line revenue, which gives you a clearer picture of your account's financial health.
An agency that has launched products in multiple countries understands that what works in one market might not work in another. This experience translates into more creative problem-solving and a deeper understanding of consumer behaviour, which is valuable even if you only sell in the US.
European agencies often use fixed retainers or performance-based fees. This model aligns the agency's goals directly with your profitability. Unlike percentage-of-spend models, there is no incentive for them to simply increase your ad budget; their focus is on delivering results that justify their partnership.
Neither is inherently 'better'; they are just different. European agencies bring analytical depth and cross-market strategy, while US agencies offer deep knowledge of the world's largest single marketplace. The right choice depends entirely on your business goals and whether you feel you need a more strategic, data-focused partner.
It means you can expect a more structured and predictable experience. This includes detailed onboarding processes, standardised campaign management that anyone can understand, and regular strategic reviews that focus on direction, not just numbers. It helps avoid the common problem of an agency losing momentum after the first few months.
