In-House or Marketing Agency for Ecommerce Businesses
Running an e-commerce business means wearing many hats. One big challenge is figuring out how to handle marketing: should you hire an in-house or marketing agency team? This decision can be tough. For many ecommerce owners, it boils down to one core question: Who to hire for this specific task? Every marketing task (SEO, ads, content, email) may prompt that same question. In this article, we break down the main factors ecommerce owners consider when deciding whether to do marketing in-house or with an agency.
Cost: In-house or Marketing Agency?
Money matters. Building an in-house team means salaries, benefits, and tools. One guide notes a typical marketing hire costs over $70,000 per year after adding taxes and benefits. For a small company (3-person team), that’s well over $200,000 per year in payroll and overhead. Agencies aren’t free, but they often cost less up front. Many businesses report agency fees from $20,000 to $200,000 per year depending on scope. Plus, agencies pay for their own tools and training, so those costs aren’t on you.
In-House Team (Pros):
Predictable fixed costs once the team is hired.
No ongoing agency fees; payroll stays in-house.
In-House Team (Cons):
High salaries plus roughly 40–100% extra for taxes, insurance, etc. (an average marketer costs over $70K/year.
Upfront investment: hiring top talent and equipping them can strain your budget.
Marketing Agency (Pros):
Flexible pricing: pay only for services you need, often on a monthly or project basis.
Tools included: agencies have all the subscriptions and training covered.
Marketing Agency (Cons):
Ongoing fees: agency retainers or project costs add up.
Costs can scale with growth: larger campaigns and more services mean higher invoices.
Expertise & Skills
Marketing covers many specialties (SEO, ads, content, design, etc.). An in-house team often starts small and learns on the job. Over time, they gain a deep understanding of your products and customers. In contrast, a marketing agency already employs specialists in each area. Agencies keep up with the latest trends and tools, and their staff have seen what works across industries. This means you get a full suite of skills (analysts, designers, copywriters) without hiring each one separately.
In-House Team (Pros):
Brand expertise: your team lives and breathes your products, values, and voice.
100% focus: their only client is you, so strategy stays fully aligned.
In-House Team (Cons):
Narrow skill set: small teams often rely on generalists and may lack some specialized skills.
Hiring challenge: filling all roles (SEO, ads, analytics, design, etc.) internally is costly and slow.
Marketing Agency (Pros):
Instant expertise: you tap into a team of experienced marketers.
Broad exposure: agencies use best practices and creative ideas learned from many clients.
Marketing Agency (Cons):
Ramp-up time: an agency needs time to learn your brand’s specific needs.
Industry nuance: if your market is very niche, an agency may need more onboarding or research.
Speed & Agility
Time is money. An in-house team handles tasks directly, but scaling up fast can be hard. If sales or ads need a boost (say a holiday sale), an in-house team may require overtime or new hires. Agencies are built to pivot: if you need to “ramp up and fast,” an agency can throw more people at the problem immediately. An in-house team would struggle to match that speed without going through hiring or training.
In-House Team (Pros):
Immediate action: team members can respond to urgent needs right away.
Familiar processes: no waiting on outside approval for minor campaign tweaks.
In-House Team (Cons):
Limited bandwidth: a small team can get overwhelmed by sudden workload spikes.
Hiring lag: adding a new in-house marketer takes time (average ~50 days to hire).
Marketing Agency (Pros):
Scalability: agencies can allocate extra staff or hours as needed.
Fast pivot: experienced agencies routinely shift strategies to hit deadlines.
Marketing Agency (Cons):
Less spontaneity: urgent tasks still go through a project manager.
Scheduled updates: you get regular reports rather than instant check-ins.
Control & Communication
Some owners want hands-on control. An in-house team sits at your office, making quick chats and changes easy. You set priorities directly. An agency, on the other hand, acts as an external partner: you have scheduled check-ins with an account manager instead of everyday casual oversight.
In-House Team (Pros):
Total control: you call the shots on every marketing decision.
Instant feedback: walk over for quick answers or approvals.
In-House Team (Cons):
Time drain: managing the team day-to-day can distract you from other tasks.
Office issues: internal politics or miscommunication can slow campaigns over time.
Marketing Agency (Pros):
Professional management: agencies handle projects end-to-end and keep you updated on a schedule.
Clear goals: they usually define KPIs (like sales or leads) and report results.
Marketing Agency (Cons):
Less daily input: you won’t see the team working minute-by-minute.
Communication lag: updates only come on schedule (meetings or emails).
Flexibility & Scalability
Business needs ebb and flow. In slow seasons, you still pay an in-house team. If business surges, you have to hire or stretch staff. Agencies can flex up or down: they add resources when needed and cut back when it’s quiet. Many ecommerce brands use agencies to handle seasonal spikes (like holiday sales), since agencies can quickly increase ad spend or content output.
In-House Team (Pros):
Constant availability: your team is always there to handle tasks.
Cross-training: employees can cover different roles internally as needed.
In-House Team (Cons):
Fixed cost: you pay the same salaries even in slow periods.
Slow to scale: adding new campaigns means hiring more staff.
Marketing Agency (Pros):
Service flexibility: you can increase or decrease services month-to-month.
Easy start/stop: agencies are usually easier to bring on for a project and end than to hire/fire staff.
Marketing Agency (Cons):
Contracts: some agencies require minimum terms or notice for changes.
Agency workload: if the agency’s workload is high, your flexibility depends on their schedule.
Brand Knowledge & Focus
Your brand’s story, products, and audience are unique. An in-house marketer lives and breathes your brand daily, learning its nuances fast. Internal teams “share the same vision” and get deeply familiar with your identity. Agencies, meanwhile, offer an outsider’s view. They can provide new ideas and strategies you might not think of, since they work on many brands.
In-House Team (Pros):
Deep familiarity: they know your products, customers, and brand voice inside out.
Full focus: all their work is on your business, so messaging stays consistent.
In-House Team (Cons):
Tunnel vision: ideas can become too narrow without outside input.
Training time: even new hires need time to fully “get” the brand.
Marketing Agency (Pros):
Outside perspective: agencies bring creative ideas from diverse experiences.
Specialized input: you can choose an agency experienced in your product category.
Marketing Agency (Cons):
Learning curve: they must spend time understanding your market and products.
Shared focus: your brand is one of several clients (though a good agency treats you like a top priority).
Tools & Technology
Digital marketing uses many tools (SEO platforms, analytics, ad software). An in-house team must buy or subscribe to each tool, which can be expensive. Agencies usually have enterprise subscriptions to all the common tools, plus proprietary software. For example, one agency provides clients with an AI-powered analytics dashboard at no extra cost.
In-House Team (Pros):
Tool control: you pick the software that fits your needs and keep all data internally.
Integration: you can tie marketing tools directly into your other systems.
In-House Team (Cons):
Extra cost: SEO tools, CRM systems, reporting platforms, etc. all add up.
Expertise needed: your team must learn and manage each tool.
Marketing Agency (Pros):
All-in-one: agencies bring their paid toolset (you don’t pay separately).
Latest tech: they invest in new tools and methods, so you benefit from upgrades.
Marketing Agency (Cons):
Limited access: you may just get reports and dashboards instead of using the tools directly.
Transition work: switching agencies can mean moving your data to new platforms.
Hiring & Team Management
Hiring marketers is time-consuming. Posting jobs, interviewing, and training can take weeks or months. Managing full-time staff means handling salaries, benefits, reviews, and turnover. A marketing agency handles all that for you: they hire and train their people, and assign a dedicated account manager to your brand.
In-House Team (Pros):
Cultural fit: you recruit people who fit your company’s values and style.
Direct oversight: you coach and develop staff as you see fit.
In-House Team (Cons):
Recruitment effort: finding skilled marketers can be slow and costly.
Turnover risk: if a key person leaves, campaigns can stall.
Marketing Agency (Pros):
No hiring hassle: the agency provides a full team and handles HR.
Continuity: if one agency member leaves, another steps in to keep work going.
Marketing Agency (Cons):
Indirect control: you communicate through an account manager, not directly with every specialist.
Different culture: agency staff aren’t your employees and may not share your passion (though good agencies bridge this gap).
Creativity & Perspective
Marketing thrives on ideas. An in-house team knows your brand story well, but may run out of fresh ideas internally. Agencies often bring new creative angles because they work across many industries. Experts note agencies provide “outside perspective and fresh inputs” that an in-house team may miss.
In-House Team (Pros):
Aligned creativity: their ideas stay true to your brand’s voice and customer insights.
Fast iteration: they can quickly tweak campaigns without external approvals.
In-House Team (Cons):
Idea fatigue: without outside influences, creativity can plateau.
Limited scale: big new ideas may require resources your small team can’t dedicate.
Marketing Agency (Pros):
Creative diversity: agencies mix ideas from many clients and industry trends.
Dedicated resources: they often have full creative teams focused on innovation.
Marketing Agency (Cons):
One-size risk: an agency might suggest trendy ideas that don’t fully fit your niche.
Less ownership: creative work might feel less personal since they juggle multiple clients.
Results & Accountability
You need marketing that drives sales. In-house teams let you track every campaign, but measuring performance requires tools and expertise. Agencies often come with analytics know-how and focus on ROI. For example, a WebFX consultant says an agency can deliver “full service resources for the cost of one internal salary” because they have subject-matter experts on staff. Agencies tend to set clear targets (KPIs) and report progress.
In-House Team (Pros):
Direct access: you own all analytics and can dive into data anytime.
Aligned incentive: the team’s success (and their rewards) is tied to your success.
In-House Team (Cons):
Limited benchmarks: small teams may lack broad industry data to compare results.
Learning curve: advanced analytics skills may be lacking.
Marketing Agency (Pros):
Data-driven: agencies provide regular reports on ROI and continuously optimize.
Expert analytics: they have tools and staff dedicated to tracking performance.
Marketing Agency (Cons):
Cost transparency: agency fees include profit and overhead, so ask how work is billed.
Vendor risk: you rely on an external partner to meet your targets; switching agencies can reset your benchmarks.
Risk & Continuity
Every setup has risks. In-house means HR responsibilities (payroll, benefits, legal). If you let someone go, you still pay severance. If a key marketer quits suddenly, your campaigns can halt. An agency has its own risks: they could restructure or change strategy, and if you part ways, you must restart marketing efforts with someone else.
In-House Team (Pros):
Full control: you choose and manage every team member.
Long-term knowledge: a stable employee builds expertise in your business over time.
In-House Team (Cons):
Turnover pain: losing a staffer means losing experience (and you still pay to replace them).
Fixed overhead: you pay salaries regardless of sales.
Marketing Agency (Pros):
Shared risk: agencies hire their own staff, so you avoid hiring/firing headaches.
Continuity: agencies usually backfill staff internally so your projects keep running.
Marketing Agency (Cons):
Changing providers: switching agencies can cause a transition gap.
Alignment shift: an agency’s priorities may change if they take on new clients.
Balancing Your Choice
Ultimately, there’s no one-size-fits-all answer, it depends on your goals. What matters most is choosing the approach — in-house or marketing agency — that suits your business. Many ecommerce brands use a mix: keep core marketing roles in-house and outsource specialized work to an agency. Each company must answer the core question: in-house or marketing agency? If you’re unsure which path fits your business, Rocket Agency can advise you.