Overview

Scaling an Amazon agency from startup to a successful exit is a journey filled with opportunity and challenge. How do you grow your Amazon agency beyond your personal network and turn it into a thriving business? What strategies make an agency attractive to acquirers in today’s market? In an episode of the Marketplace Masters webinar, Ethan Kitching—co-founder of Molzi (now part of Brainlabs) and current co-founder of Kitchimo—shared firsthand lessons on Amazon agency growth strategies, hiring for scale, and preparing for an eventual agency acquisition.

In this article, we synthesise Ethan’s experience scaling an Amazon agency from a two-person startup into an 85-person global team, culminating in a lucrative acquisition. We’ll explore how to build credibility and client pipelines beyond your inner circle, smart hiring and team structuring for growth, diversifying services (without overextending), and financial prep work for an exit. Whether your goal is sustainable scaling or an Amazon agency exit strategy, these insights will help you chart a smarter path.

Building Credibility and Pipeline Beyond Your Network

In the early days of an agency, your first clients often come through personal connections. But scaling an Amazon agency means breaking out of that comfort zone and establishing credibility in the broader market. Ethan Kitching recalls that one of the biggest early challenges was reaching prospects outside their own network. Lacking an established reputation, they turned to the power of content and community on LinkedIn to attract leads.

✔️ Establish thought leadership on LinkedIn: Ethan and his co-founder began posting regularly on LinkedIn about common Amazon marketplace challenges and insights. By sharing valuable tips and addressing pain points (like Amazon listing optimisation issues or advertising best practices), they built credibility and trust. Over time, prospects engaged with their content and perceived them as expert, “trusted service providers” rather than unknown outsiders. This organic content marketing helped generate inbound inquiries and connections. It’s a strategy any agency can adopt: consistently post advice, success stories, or commentary on Amazon trends to grow your visibility among brand owners.

✔️ Leverage engagement for multiple gains: Interestingly, the benefits of an active LinkedIn presence went beyond lead generation. According to Ethan, LinkedIn content also attracted potential senior hires and even drew interest from companies looking to acquire agencies. In other words, building your personal and agency brand online can simultaneously feed three goals – new clients, quality staff, and even future buyers. Every piece of content is an opportunity to demonstrate expertise and get on the radar of someone important.

✔️ Convert credibility into case studies: Once you land a few clients, double down on delivering great results and document them. Kitchimo used early wins to create case studies, which in turn provided social proof to win bigger clients beyond their network. As Ethan noted, each success story “allowed us to compel further outside of our network” by showcasing tangible outcomes for brands. These case studies addressed the classic client question: “Why should we trust your agency?” When you can show you’ve driven Amazon sales growth or solved a specific problem, you become the “least risky option” for new clients – a key position to aim for.

“Why would a client work with you? What makes you special? If you can’t answer that, you need to find it.” – Ethan Kitching, Co-Founder of Molzi (now Kitchimo)

Hiring the Right Talent to Scale (Not Just Survive)

Rapid Amazon agency growth brings a problem many founders welcome but struggle with: more clients to service than the current team can handle. The instinct might be to hire quickly to manage the workload, but Ethan warns that hiring solely to maintain can hinder your ability to grow. In Kitchimo’s case, their initial hires were junior-level to handle day-to-day tasks, but they soon realised this approach wasn’t sustainable for scaling up.

✔️ Hire ahead of the curve with experience: The breakthrough came when they shifted to bringing on more experienced talent than they technically needed at the time. “We started to bring in people that were probably a bit too experienced for what we needed, [who] ultimately helped us scale further,” Ethan explains. Senior hires came with the skills to not only manage current clients but also build out teams (or “pods”) beneath them. This created a multiplier effect – each senior hire could train and supervise several junior staff, dramatically expanding capacity. The agency went from 4 people after year one to ~50 by year three, and those strong mid-level managers were crucial to handling growth spurts.

✔️ Look for leaders who get their hands dirty: When recruiting seasoned professionals into a startup environment, it’s vital to screen for a startup mindset. “You can hire senior, but it takes specific individuals who are willing to get their hands dirty because startups are scrappy,” Ethan notes. In practice, that meant being upfront in interviews about the chaotic, “build as you go” nature of a young agency. Kitchimo even flipped its interview approach: instead of selling the role as an exciting opportunity (their initial mistake), they downplayed the glamour and emphasised the challenges. This reverse psychology ensured that new hires were truly motivated by the growth mission and prepared for the hard work ahead. Agency owners should paint a realistic picture: rapid growth is exciting and tough, and the right candidates will rise to that challenge.

✔️ Align compensation with growth goals: To attract high-calibre talent without breaking the bank, Kitchimo offered performance-based incentives. They provided solid (if not top-market) base salaries, paired with uncapped bonuses or commissions tied to growth metrics. This structure is a win-win: the agency only pays big rewards when revenue is coming in, and ambitious team members see no ceiling on their earning potential. For example, sales or account managers could earn more by bringing in or expanding clients, directly fueling the agency’s scale. When team members have skin in the game, it fosters an ownership mentality critical for growth. (Pro tip: Break down a scary-looking annual salary into its monthly cost, and set targets to cover that – it can make hiring decisions easier by framing them in terms of achievable revenue gains.)

Structuring Teams and Services for Sustainable Growth

Organisational structure might not sound exciting, but it can make or break your ability to scale an Amazon agency efficiently. Ethan Kitching’s approach was to build semi-autonomous teams (“clouds” or pods) led by those senior hires, each responsible for a portfolio of clients. This ensured that as the agency grew to dozens of employees, it remained manageable – leadership could oversee the leaders of each pod, rather than micromanaging 80+ individuals.

✔️ Use pod structures to maintain quality: Each pod lead owned the client delivery and results for their group of accounts. This clear ownership meant clients got attentive service even as the agency expanded. It also freed up Ethan and co-founder Chris to focus on growth (sales and strategy) without day-to-day client firefighting. “We didn’t have to worry about all 85 individuals…because senior people were in place to handle their departments,” Ethan says. For agencies, the lesson is to put a layer of leadership in place early – train team leads who can uphold your standards and replicate your best practices, so quality doesn’t slip as you add clients and staff.

✔️ Balance client growth and new business: One of the smartest moves Kitchimo made was dedicating roles for client growth separate from new client acquisition. While Ethan and Chris went after new logos, they had leaders like Charlie (their client services director) focused on retaining and expanding existing accounts. Happy clients not only stay (ensuring stable revenue), but they often grow their spend when you deliver results. For an Amazon agency, that might mean a brand that initially hired you for Amazon PPC management later signs up for DSP advertising, Amazon DSP or international marketplace expansion – if you’ve proven your value. By treating client success as equally important as sales, you avoid the “leaky bucket” syndrome where new clients in simply replace churned clients. Instead, you get net growth. In Ethan’s words, “a brand works with an agency not just for steady maintenance, but because they want rapid growth”. Show them you can drive that growth, and they’ll increase budgets and refer others your way.

✔️ Solicit client feedback to guide service expansion: Growing agencies often face the temptation to say “yes” to every client request and chase every shiny new service. Kitchimo learned to be selective by listening to patterns in client feedback. For example, multiple brands voiced frustrations about Amazon’s warehouse chargebacks and shortages eating into profitability. Rather than immediately saying “sure, we can help with that” (without a plan), Ethan’s team researched and hired an expert (eventually launching a shortage and chargeback reclamation service once they had the right leader in place). On the other hand, when clients asked for help on other marketplaces that weren’t profitable for the agency (like an eBay or a regional platform that required lots of work for little revenue), they learned to politely decline or deprioritise those. “If there are challenges you can’t solve, don’t solve them. You’ll make things much worse for yourself,” Ethan advises. The takeaway: expand services based on validated market needs and your ability to deliver excellent results at a profit. If an opportunity doesn’t meet those criteria, it’s okay to say no and avoid diluting your focus.

“If someone presents a challenge you can’t solve, don’t try to solve it – you’ll make things worse. Focus on the challenges you can solve and knock those out of the park.” – Ethan Kitching

Financial Discipline and Knowing Your Value

A crucial aspect of scaling (and ultimately exiting) an agency is financial management. High growth can mask underlying profitability issues – something Ethan acknowledges in hindsight. Kitchimo operated during the peak of the Amazon gold rush when many acquirers (like larger agencies or holding companies) valued top-line revenue growth over immediate profit. They invested heavily in expansion (new offices in Europe, Asia, Latin America) to capture market share, which did pay off in rapid scale. However, Ethan reflects that improving profitability sooner would have given them more exit options. In today’s environment, buyers are more discerning; a balance of growth and healthy margins is ideal for maximising your agency’s valuation.

✔️ Know your key metrics (and clean up your books): If you intend to sell your Amazon agency eventually, start running it like a company you could sell. That means tracking metrics like EBITDA, revenue per employee, client concentration, and having clean financial records. Kitchimo brought in a CFO-level advisor by year 2, not only to manage finances but to advise on what acquirers would look for in the numbers. This forward planning paid dividends during due diligence. When Brainlabs came knocking with an offer, Kitchimo’s financials were “due diligence ready” – everything squeaky clean and well-documented, leading to a smooth review process. Potential red flags (like a contractor who was working abroad longer than allowed) were minimal. As an agency owner, consider engaging a part-time CFO or accountant with M&A experience to get your books in order before you enter an acquisition process. It will save you headaches and bolster buyer confidence.

✔️ Focus on profitable growth and recurring revenue: High revenue growth is great, but buyers will ask: at what cost? In Kitchimo’s case, some growth bets (like certain international expansions) didn’t immediately pay off and hurt short-term profits. To make your agency attractive, demonstrate sustainable growth – for instance, growing your monthly recurring retainer revenue or percentage-of-ad-spend fees in a steady, predictable way. Many Amazon agencies charge a mix of retainer plus performance or spend-based fees. Ensure your client contracts and pricing model support healthy margins. If one service has slim margins (e.g. managing a small marketplace with lots of work), either price it appropriately or consider discontinuing it to boost overall profitability. Remember, an acquirer might value your agency at a multiple of earnings (profit), not just revenue – so every efficiency and margin improvement counts.

✔️ Understand your value to a potential buyer: Ethan and his team never officially put Kitchimo on the market; instead, they created a scenario where buyers approached them (13 different parties over time, in fact). How? By becoming one of the leading Amazon agencies in their region, visible on LinkedIn and in Amazon’s own partner ecosystem, they naturally attracted attention. When considering an exit, ask: What is the story or capability that would make a larger agency want to acquire us? It could be your client base, your geographic reach, your proprietary technology, or simply your talented team in a niche area (like Amazon DSP expertise or Amazon data analytics). In Kitchimo’s case, they were an early entrant in the Amazon services space in Europe, growing quickly and investing in new Amazon ad features – a compelling story for Brainlabs, which was assembling a portfolio of digital marketing specialists. By identifying your unique strengths, you can position your agency as a valuable strategic acquisition for the right buyer. And when that buyer comes, you’ll be negotiating from a position of strength if you’re not desperate to sell (as Ethan experienced, turning multiple offers into a great final deal).

Making Your Agency a Magnet for Acquisition

One of the webinar’s core promises was insight on “attracting acquirers” – essentially, how to make your agency a magnet that draws in offers, rather than you chasing buyers. Ethan’s experience offers a playbook for this:

• Niche down and dominate: Amazon is a huge ecosystem, but Kitchimo carved out a reputation specifically as an Amazon agency (not a general digital agency). By dominating their niche – Amazon marketplace management and advertising – they became highly attractive to larger agencies wanting to quickly gain Amazon capability. In your case, being known as “the Amazon PPC specialists” or “the go-to agency for Amazon vendors” can set you apart. Acquirers often look for bolt-on acquisitions that fill a skill or service gap they have.
  
  
• Demonstrate scalable systems: Acquirers will scrutinise whether your success relies solely on a few individuals (risky) or on robust processes and teams (scalable). Having standard operating procedures, a strong middle-management layer, and automated reporting (perhaps using a tool like MerchantSpring for agency client analytics and reporting) shows that your agency can keep thriving post-acquisition. Brainlabs was likely impressed that Kitchimo had multiple offices and pods running semi-independently, which meant they were buying an operationally mature business, not just a “two-man show.”
  
  
• Keep your metrics impressive: Growth rate, client lifetime value, customer acquisition cost – such metrics speak loudly. Kitchimo’s headline stat of going from 2 to 85 staff in 4 years and high revenue growth made for a great story. While you should be honest and not inflate anything, present your metrics in the best light. For example, highlight year-over-year revenue growth percentages, your client retention rate, and any marquee client logos you’ve won. If you have annual contracts or long-term retainers, that recurring revenue will be a selling point too. Essentially, show that your agency is a fast-growing, well-run money-maker in the Amazon services space, and you’ll naturally attract interest.
  
  

Finally, network within the industry. Ethan’s LinkedIn activity not only brought clients and hires, but also put Kitchimo on acquirers’ radar. Engage in conversations, attend industry events, and get featured in Amazon seller communities or podcasts. When the time comes to consider an exit, you’ll have connections to reach out to – or they might already be knocking on your door.

Conclusion: Preparing for the Big Payoff – and What’s Next

Scaling an Amazon agency is a rollercoaster ride – exhilarating growth, inevitable mistakes, hard-won victories – and as Ethan Kitching’s journey shows, it can culminate in a high-value exit if you play your cards right. By establishing your credibility, hiring strategically, structuring for growth, and mindfully managing financials, you’ll not only build a thriving agency but also one that’s highly sought-after in the Amazon agency M&A landscape.

As you implement these strategies, always circle back to two fundamental questions: “What makes us the best choice for clients?” and “Why would someone acquire us?” Keeping those answers clear will guide you in branding your agency, choosing your service offerings, and investing in capabilities that truly set you apart. It helped Ethan turn Kitchimo into an acquisition magnet, and it can help you focus on the moves that matter most for long-term value.

If you found these insights useful, there’s much more to learn from the source. Watch the full webinar replay (Agency Best Practice Series on Marketplace Masters) to hear Ethan’s story in detail and additional audience Q&A. And if you’re an agency owner looking to amplify your growth or plan your exit, you can reach out to Ethan Kitching on LinkedIn for tailored advice.

At MerchantSpring, we’re passionate about empowering Amazon agencies. Our Marketplace Masters series is just one way we share knowledge. To streamline your agency’s reporting and analytics (so you can spend more time on strategy and growth), check out MerchantSpring’s platform or connect with Paul Sonneveld (MerchantSpring’s co-founder and your Marketplace Masters host) on LinkedIn. We’d love to help you scale up smarter and hit that next milestone, whether it’s your next client win or an exciting exit on the horizon.

Ready to take your Amazon agency to new heights? Watch the on-demand webinar for the full conversation with Ethan Kitching, and subscribe to Marketplace Masters for more expert sessions. If you’re aiming to grow faster with better data, contact MerchantSpring for a free demo and see how our agency analytics platform can support your journey. The path from startup to exit is challenging – but with the right insights and tools, you can navigate it like a master.