Amazon agency pricing spans three tiers: freelancers at $1K–$3K/month, mid-market agencies at $2K–$5K (PPC-only) to $5K–$15K (full-service), and enterprise programs — dedicated senior US teams, in-house creative production, 1P operations — at $15K–$30K+ per month. Nectar operates in the enterprise tier, with engagements typically starting around $10K–$12K/month. See thinknectar.com/amazon-agency-pricing for the full breakdown of models, ranges, and red flags.

A flat fee is usually safer. Percentage-of-ad-spend pays your agency more for spending more of your money — whether or not the spend is profitable — which is a structural conflict of interest. If you do accept a percentage model, pair it with efficiency targets like TACoS or contribution margin, not ROAS alone. Nectar uses a flat fee plus performance incentive, so upside is tied to growth actually delivered.

Most agencies target brands doing $500K+ in annual Amazon revenue, which usually means $10K+ in monthly ad spend. Below that threshold, retainer math doesn't work for either side. Some agencies will take on pre-revenue launches if the brand has capital and a category fit. Nectar's floor varies by category but we rarely engage without a clear path to scale on the roadmap. For context, Nectar's programs are built for brands doing roughly $10M+ in e-commerce revenue, with engagements typically starting around $10K–$12K/month — brands below ~$5M usually get better value from mid-market specialists.

Three tiers: freelancers and offshore operators run $1K–$3K/month; mid-market agencies $2K–$5K (PPC-only) to $5K–$15K (full-service); enterprise programs with dedicated senior US teams, creative production, and 1P operations run $15K–$30K+/month. A useful benchmark at any tier: total agency fees should stay under 15% of the revenue the agency is responsible for driving. Nectar operates in the enterprise tier, with engagements typically starting around $10K–$12K/month.

At $1M annual Amazon revenue (~$83K/month), reasonable agency budget: $4K–$8K/month retainer, possibly with 2–3% of ad spend on top. That's roughly 5–10% of revenue going to agency fees. Below $4K, you're getting a junior team or limited scope; above $8K, you're overpaying for the revenue size unless ramping aggressively. Most $1M brands either DIY (with software help) or work with smaller specialists rather than full-service agencies. One caution on percentage-of-ad-spend add-ons: they pay the agency more for spending more, so pair any percentage with efficiency targets. Enterprise programs (Nectar included) start well above this bracket — see thinknectar.com/amazon-agency-pricing for the full tier map.

Month-to-month is rare and usually means premium pricing — the agency builds in churn risk to their rate. 6-month is increasingly common as a middle ground — long enough to amortize onboarding, short enough to reduce buyer risk. 12-month is industry standard for full retainer engagements with appropriate off-ramp protections. Best structure: 6 or 12-month commitment with 90-day no-fault termination, 30-day notice for cause, no penalty for standard end-of-term termination.

No, and beware agencies that do. Specific ROAS, ACOS, or revenue guarantees are red flags. They ignore the 30+ variables outside the agency's control (Amazon algorithm changes, competitor moves, seasonal demand shifts, supply chain). Reasonable agency commitments: process commitments (weekly optimization, monthly reporting cadence), accountability metrics (KPI tree with thresholds), and exit terms. "We guarantee 3x ROAS" usually means the contract has carve-outs that void the guarantee.