Introduction:

Amazon advertising services are booming – but how do you price them fairly? Should you charge a fixed monthly fee, a percentage of ad spend or sales, or a hybrid?

In this blog, we’ll break down the pros, cons, and use-cases for each pricing model to help brands choose the right agency structure and help agencies price their services profitably and transparently.

 The 3 Common Pricing Models

 1. Fixed-Fee Pricing

You charge or pay a flat monthly fee (e.g., $500/month) regardless of ad spend or sales.

Best for:

• Smaller brands with consistent ad budgets

• Agencies with systemized SOPs

• Predictable workload and deliverables

Pros:

• Simple billing

• No surprises for clients

• Easier for accounting and budgeting

Cons:

• No upside incentive for agencies

• Not scalable if workload increases

• Brands may underpay or overpay based on actual results

 2. Percentage of Ad Spend

You charge a percentage of the client’s ad spend (usually 10%–20%).

Example: $10,000 monthly ad spend → $1,500 fee at 15%

Best for:

• Medium to large brands

• Clients scaling aggressively

• Agencies providing active bid & campaign management

Pros:

• Scales with ad budget

• Motivates agencies to push spend (and performance)

• Transparent for brands spending more

Cons:

• Doesn’t guarantee return (may reward inefficient spend)

• Harder for clients with fluctuating budgets

• Risk of mistrust if ROAS drops

 3. Percentage of Revenue / GMV

You charge based on a percentage of sales generated (e.g., 3% of GMV).

Best for:

• Full-funnel performance partnerships

• D2C or Amazon brands with strong attribution

• Agencies running both ads + listing + CRO

Pros:

• True performance model

• Risk-sharing motivates better performance

• Aligned incentives

Cons:

• Attribution disputes (especially with external traffic)

• Reporting can get messy

• May exclude brand-building or long-term value

 4. Hybrid Model (Fixed + % Bonus)

Combines fixed base fee + performance bonus:

Example: $750/month + 5% of revenue above $30K

Best for:

• Mature clients scaling with agency support

• Balancing baseline operations + performance upside

Pros:

• Security for agency

• Motivation for overperformance

• Works well for long-term retainers

Cons:

• Needs transparent reporting

• May require contracts or revenue validation

 What Factors Should Guide Pricing?

 Example Pricing Models in Action

 What eCommercean Offers

At eCommercean, we follow a scalable hybrid model:

• First 3 months: Fixed, transparent onboarding price (covers setup, analytics, tools)

• Post onboarding: Either
  a) Flat retainer
  b) Percentage of GMV
   We choose whichever is higher – aligning with both growth and stability.

This ensures we scale with the client, but don’t operate at a loss when volume is low.

 Pro Tips for Brands & Agencies

If you’re a brand:

• Ask for performance metrics (not just spend reports)

• Demand clear attribution logic (Amazon Attribution, SQR, etc.)

• Start with fixed, then move to hybrid once trust is built

If you’re an agency:

• Offer ROI-based dashboards

• Use SOPs and automation to scale fixed-price clients profitably

• Offer audits or tool-based insights to upsell retainers

 Conclusion:

There’s no one-size-fits-all model – but transparency, scalability, and alignment are non-negotiable. Fixed pricing gives stability, percentage rewards performance, and hybrids strike the perfect balance.

Want to work with an agency that adapts to your brand’s growth? Explore eCommercean’s Growth-Ready Pricing Models and book a discovery call today.