How Much Does An Ecommerce Marketing Agency Cost?
Hiring an ecommerce marketing agency can make perfect business sense for brands that want to grow.
There are many benefits to outsourcing your ecommerce marketing needs. Ecommerce marketing has many facets – from social media and strategy to SEO, data and analytics, sales funnel campaigns, conversion rates, and so much more – there’s a lot of ground to cover.
For many brands it simply makes sense to delegate marketing efforts to an experienced team who have access to the latest trends and knowledge to truly help your business thrive.
6 factors that impact costs when you’re budgeting for an ecommerce marketing agency
One of the most common questions and concerns most brands have is how much hiring an ecommerce marketing agency is going to cost.
In marketing, there isn’t a one-size-fits-all approach – everything is tailored to individually meet the demands of your brand. While this is certainly a benefit as it means your company can enjoy an individual approach, it does mean that it can be tricky to cost.
It can be tempting to opt for the cheapest option out there, but ecommerce brands should be aware of the importance of balancing competitive costing with true value. Here are some elements that will impact cost.
1) Your current position
One of the first areas that can impact your costs is the current position of your brand and where you want to go. For example, what areas do you want the ecommerce agency to focus on? Are you looking for web development, mailing lists, to implement mobile apps to your store, or create marketing campaigns?
Your goals, what you want to achieve, and your current position will have an impact on the costs involved.
2) Your scope and timeline
Once your current position has been ascertained, the ecommerce marketing agency will also want to know more about the scope of your project and the timeline you are working within.
Of course, grander scale projects, such as climbing to the top of the search engines and growing a customer database, will all have a higher cost than crafting a few short blog posts. A quick return on investment and shorter time scope may also lead to higher costs.
3) Your competition and reach
Higher competition means a harder job. For those brands who are operating in an oversaturated marketplace, the ecommerce marketing brand will have a bigger job on their hands to make you stand out from the crowd and this will have an impact on price.
The same can be said for geographical reach, too. Local services may not be as demanding, and international reach may also require a higher budget.
4) Your buyer journey
An intricate understanding of your buyer journey is also essential to working out your ecommerce marketing agency budget. If your sales cycle is a simple buy-and-go, it may not impact cost too much.
For those longer and more complex conversions, there will be more content needed and more steps refined to get your customers from interest to purchase.
5) The agency itself
Some costs won’t be related to your task but will be linked to the agency itself. For example, a smaller agency will usually be made up of individuals who specialise in key areas, whereas a larger agency may outsource some of the project work to freelancers which will reduce costs as they won’t be paying for office space and overheads.
Agencies that specialise in your segment vs. agencies that work across multiple sectors will also lead to cost fluctuations.
6) The agreement
There are many ecommerce marketing agencies out there who work on a per project basis, but there are also agencies where retainers and longer term agreements make more sense.
Retainer-based contracts are usually geared towards longer term goals that require constant attention such as content marketing, social media, SEO, and email marketing. Per projects can include web development, consultations, and tech support and integration.
How to know what the right cost is
Collecting quotes from ecommerce marketing agencies is going to give you a rough idea of the kind of costs you will be paying – although again, this can fluctuate massively. Some will quote too much and others too little, and it’s down to you to ascertain where the line between value and return on investment aligns.
When assessing a budget, you should consider what the agency is offering you and whether these costs are fully transparent. Fully transparent pricing is essential to avoid surprises along the way.
You also want to check the timeline and ask about previous client results so you can see whether the agency has had successes in the past.
Is the cost of an ecommerce agency worth it?
Whether (or not) an ecommerce agency is worth it really depends on your business goals, your scope, and your inhouse expertise.
If you want your business to grow but you don’t have the time, knowledge, or tools to make that happen, then leaning on an ecommerce agency is worth its weight in gold. Experienced marketing agencies have an interest in your business doing well, as this reflects well on their services and grows their own business too. In short, it can be a partnership.
There’s also the added benefit of knowing that you have a company to lean on should you come across any technical issues or should a new algorithm throw your positioning into disarray.
Above all, hiring an ecommerce marketing agency can be a savvy investment in the stable future of your business and can bring in new ideas, specialist knowledge, and exciting new directions.