Amazon has been working hard to recover from the coronavirus-related constraints it has been experiencing since the Spring. Q4 has always been a challenging time for Amazon, but 2020’s Q4 is mixed with an unpredictable pandemic. While Amazon planned ahead to avoid any pitfalls, it still hasn’t fully returned to normal. For example:
- For the first time ever, there have been up to 2-month delays at fulfillment centers for inventory check-in, which is completely inconsistent with Amazon’s normal logistical practices.
- Amazon’s Prohibited Claims & Restriction Policy (PCRP) is still in effect. This policy implements stringent requirements on the creation of new ASINs for Personal Safety and Household Products including soap and hand sanitizer.
- Amazon has not announced lifting FBA storage limits that were implemented in July 2020, which is unprecedented during lucrative shopping holidays.
Even Prime Day looked and felt different this year—like everything else in 2020. Amazon pushed the shopping extravaganza back from July to October with a last-minute announcement that produced little high-frequency advertising that it normally does. This forced 3P sellers to come up with effective plans and strategies with a quick turnaround that amounted to decent sales, but nothing record-breaking. Here are a few observations from Prime Day 2020:
- 3rd party vendors, resellers, and brand managers did not see the sales they expected or normally experienced
- Amazon appeared to center promotional ads or landing pages around Amazon goods and brands
- Independent or unique brands were generally overshadowed
With the economic stimulus relief at a standstill and the unemployment rate at a high, customers still don’t have the disposable income that they used to, which can even affect Amazon Q4 sales. However, it’s important to note that customers are still committed to saving money and are more price-conscious than ever before. This gives us some hope that the millions of deals offered on these special shopping holidays will be hard to ignore.
So what kind of revenue should Amazon sellers expect this Q4? Below is an infographic that may help you predict what to expect for your own business on Black Friday, Cyber Monday, and the rest of the holiday shopping season in 2020.
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