How to Prepare for Amazon Q4: Amazon Seller Tips
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This guide will help you get started, understand the basics of Amazon selling, and explain in simple words how it all works.
Q4 refers to the fourth quarter of the year, encompassing October, November, and December. This period includes major shopping events like Black Friday, Cyber Monday, and the entire festive season, making it the busiest and most lucrative time of year for retail sales. To stand out and maximize your sales, it's essential to prepare in advance with a well-planned strategy.
In this post, we will share the most effective Amazon selling strategies for Q4 2024. You'll get practical tips on what to do and what to avoid to ensure your Q4 is a success.
What Is Q4 for Amazon Sellers?
Q4, or the fourth quarter of the year, is a critical period for Amazon sellers, encompassing October, November, and December. This time frame is marked by significant consumer spending due to the holiday season, making it the most lucrative time of the year for many sellers.
Q4 coincides with the Amazon Holiday Season, is Amazon's biggest sale period of the year. This period typically starts in October and extends through December, culminating in the weeks leading up to Christmas. During Q4, Amazon sellers offer deep discounts on a wide range of products, including electronics, toys, home goods, clothing, and more.
The Q4 2024 includes major shopping events such as Halloween (October 31), Thanksgiving (November 28), Black Friday and Cyber Monday (November 29 - December 2), Christmas Eve (December 24), Christmas Day (December 25), and New Year's Day (January 1).
Related: Amazon FBA for Beginners 2024
While the peak sales of Q4 is from late November through the end of December, Amazon also provides early deals and promotions throughout the year. Therefore, it’s essential for sellers to start planning and preparing their holiday strategies well in advance to capitalize on this high-traffic period effectively.
Benefits of Selling on Amazon During Q4
Selling on Amazon during Q4 presents a unique set of opportunities to grow your sales, making it the most lucrative period of the year for many sellers. Here’s why.
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Increased traffic and sales
Q4 is the peak shopping season, with a significant increase in consumer spending. Events like Black Friday, Cyber Monday, and the lead-up to Christmas drive a massive influx of shoppers to Amazon, resulting in higher traffic and sales volumes for sellers.
Enhanced visibility
Amazon's marketing efforts during Q4, including holiday deals, lightning deals, and other promotions, can significantly boost the visibility of your products. Participating in these promotions can help increase your product's exposure and drive sales.
Higher average order value
During the holiday season, shoppers are often more willing to spend on gifts and premium products. This can lead to a higher average order value (AOV) and increased revenue for your business.
Opportunity to clear inventory
Q4 is an excellent time to clear out old or excess inventory by offering discounts and deals. This not only frees up storage space but also generates cash flow and prepares your business for the new year.
Why Prepare for Q4 on Amazon?
Q4 is the peak time for Amazon sellers, but it can also be one of the most challenging periods. Being well-prepared is crucial to successfully navigating the hurdles that arise during this busy season.
Reasons to plan in advance for Q4
- Surge in demand
Q4 brings a significant increase in traffic and demand, which can lead to issues such as slow loading times and shipping delays. Sellers must be ready to handle these potential problems with a well-thought-out plan.
- Inventory management
One of the biggest challenges Amazon sellers face during Q4 is running out of stock. Stockouts of popular products can lead to lost sales and damage to your reputation. It's essential to have enough inventory to meet the increased demand during Q4.
To understand if you efficiently manage inventory, you can use Inventory Performance Index (IPI). It takes into account sell-through rate and excess inventory percentage. Effective inventory management corresponds to an IPI score between 400 to 800.
- FBA Storage Fees
Planning ahead is crucial due to the Holiday Peak FBA Fulfillment Fee. Removing aged inventory from Amazon warehouses not only frees up space for newer items but also helps avoid Amazon’s peak storage fees, which increase in October.
Optimizing your inventory in advance minimizes storage and aged surcharge fees, ensuring a more cost-effective and efficient Q4 selling period.
Basic and peak FBA storage fee rates
Timely Submission of Discounts and Deals
Sellers must submit deals well in advance to secure a spot in Amazon's major holiday events. Typically, deals should be submitted about two months before the event. For instance, for the Black Friday/Cyber Monday event, the deadline for recommended deal submissions is September 6, 2024. Similarly, for Prime Big Deal Days, the submission deadline is August 9, 2024.
Increased Competition
During Q4, all Amazon sellers aim to boost their sales, leading to intense competition. Sellers need to ensure they offer top-selling products, competitive prices, and attractive promotions to stand out from the competition.
5 Selling Strategies for Amazon Q4
Q4 offers great selling opportunities for Amazon sellers. However, you must have effective strategies to reach your selling targets. Below are the key strategies that work for Amazon's Q4.
Strategy 1. Research top-selling Q4 products
The most important part of your Amazon selling strategy is product research. You must find winning products that will be most popular during Q4 and then focus on selling those products.
The best product sourcing tool for this purpose is Seller Assistant, which helps you identify high-profit products directly on Amazon and supplier websites. Here’s how you can use it effectively.
Tips to find products for Amazon Q4
When researching deals for Amazon’s Q4 shopping season, pay attention to the following factors to help you select the right products.
- Choose products with high demand
Use Amazon Best Sellers Rank (BSR) to gauge product sales potential. A lower BSR indicates higher sales volume. Seller Assistant calculates potential monthly sales in the Sales field and tracks BSR drops over 30, 90, and 180 days. Green BSR numbers with downward arrows signify increasing sales, while red numbers with upward arrows indicate declining sales.
- Aim to dominate the Buy Box
Securing the Buy Box (Featured Offer) is essential as most Amazon sales occur through it. Seller Assistant displays the average Buy Box price and highlights opportunities by showing the minimum FBA and FBM prices.
It also tracks Buy Box shares among sellers and indicates when Amazon holds the Buy Box. If there is a dominating seller in the Buy Box, it is difficult to compete. You can see the Buy Box percentage per seller with Seller Assistant’s Offers feature.
- Avoid high competition
Steer clear of products with high competition, particularly those with many FBA sellers. Seller Assistant helps you check the number of FBA and FBM offers. High competition is typical if there are more than 15 sellers. Avoid products sold by Amazon as they are challenging to compete with.
- Estimate sales potential
Seller Assistant provides potential sales figures with its Sales Estimator to help you make informed decisions about product selection. It shows how many product units you can potentially sell if you become one more seller on the listing.
- Avoid restricted products and IP issues
Ensure the products you choose are not restricted on Amazon and do not have intellectual property (IP) complaints.
Seller Assistant’s Restrictions Checker and IP Alert features identify products with sales history issues and specific problems, helping you avoid potential pitfalls.
Ungated products are marked with a green open lock, while restricted products have a red closed lock. A red closed lock with an exclamation mark indicates you cannot sell the product on your account.
Products with IP Alerts are marked with a red triangle.
- Calculate profitability
Use Seller Assistant’s FBM and FBA Profit Calculator to estimate profit and profit margin for each product. Enter the Cost of Goods Sold (COG) and logistics costs into the calculator. Seller Assistant will calculate your profit, ROI, margin, and FBA or FBM fees, helping you determine which products are worth selling and how to price them competitively.
Strategy 2. Get inventory ready for peak demand
During Q4, demand for Amazon products skyrockets. It's essential to ensure you have enough inventory to meet this demand.
Inventory planning for Q4
- Prioritize inventory management
Start your inventory planning early. This includes forecasting product demand and placing orders with your suppliers 7 to 9 weeks in advance. Use historical sales data to forecast demand, monitor your inventory levels closely, and reorder low-level inventory on time.
- Utilize inventory management tools
Inventory management can be challenging during Q4 with its peak sales. Accurate forecasting is essential to avoid under- and overstocking. Use Amazon's tools and features or third-party tools to proactively manage your inventory.
Tip. The FBA Inventory report in your Amazon Seller Central offers recommendations on which products to restock, along with suggested quantities and shipping dates. This tool helps you track inventory efficiently, ensuring you meet product demand without overstocking. You can personalize these recommendations by adjusting your settings, such as lead time and case pack quantities.
Additionally, you can use third-party inventory management software, like Remex, to manage Amazon returns and excess inventory. Remex collects your unfulfillable inventory and turns it into sellable products.
- Have a backup plan
Even with the best planning, there's always a chance that you may run out of stock of a popular product. It's essential to have a backup plan in case this happens. A backup plan could involve sourcing more inventory quickly from multiple suppliers or having a contingency plan in case your primary supplier is unable to meet your demand.
Tip. Use buffer inventory (safety stock) to avoid stockouts during peak times. Discuss with your supplier or consider using a third-party logistics (3PL) warehouse to maintain a surplus inventory in case of unexpected surges in demand.
To calculate the inventory buffer for each product, use the safety stock formula. First, determine your product’s average daily usage and multiply it by its average lead time (the number of days it takes from placing an order to its arrival). Then, subtract this result from your maximum daily usage multiplied by your maximum lead time.
Strategy 3. Offer deals and promotions for Q4
Offering deals and promotions during Q4 is a great way to attract customers and increase sales. Ensure that you submit the deals for Amazon’s approval on time. Consider your target audience and make sure your deals and promotions are competitive.
Deals to offer for Q4
Lightning Deals
Lightning Deals are time-sensitive promotions where a product is featured on the Amazon Deals page for a limited duration, typically lasting 4 to 12 hours, as determined by Amazon.
Benefits
These deals are highly effective for driving quick sales, attracting new customers, and reducing overstock. They are particularly beneficial during high-traffic events of the shopping season.
Steps to submitting
Step 1. In your Seller Central, go to Advertising > Deals.
Step 2. Click "Create a new deal." Then select a deal type – “Lightning Deal,” click “Apply,” and add an eligible ASIN. Configure the deal.
Best Deals
Best Deals are promotions on high-quality products offered at a discount. They often work best with best-selling items and feature strike-through pricing.
Benefits
Best Deals help increase product sales and help sell excess inventory.
Steps to submitting
Step 1. In Seller Central, go to Advertising > Deals.
Step 2. Click "Create a new deal," then select a deal type – “Best Deal,” click “Apply,” and choose an ASIN marked as available for the Q4 event or all events. Configure the deal.
Coupons
Coupons are promotional discounts available at the point of sale on a single product or a set of products, automatically displayed on the Coupons page, search results, Product detail pages, and other locations.
Benefits
Coupons provide flexibility and competitive differentiation, encouraging customers to try your products at a discounted price.
Steps to submitting
Step 1. Submit Coupons via Seller Central under Advertising > Coupon.
Step 2. Select "Create a new coupon," and configure it.
Promotions
Amazon promotions are special marketing tools designed to increase product visibility and sales. Common types include Lightning Deals, Coupons, Buy One Get One (BOGO) offers, and Holiday Bundles.
Benefits
These promotions help drive quick sales, attract new customers, and clear out excess inventory, making them especially valuable during peak shopping periods.
Steps to submitting
Step 1. Submit Promotions via Seller Central under Advertising > Promotions.
Step 2. Select the type of promotion, and configure it.
Note. It's important to be aware of the submission deadlines for each type of deal. At the time of writing, you can submit deals for the Black Friday/Cyber Monday Event by September 6, 2024 (11:59 p.m. PDT). Best Deals will run the entire duration of the event and may start as Prime Exclusive. You can also make submissions for the Prime Big Deal Days until August 9, 2024 (11:59 p.m. PDT).
Strategy 4. Ship inventory to Amazon in advance
Shipping your inventory to FBA well ahead of Q4 ensures that your orders are fulfilled quickly and efficiently. By sending your inventory early, you can avoid the last-minute rush and potential delays.
Preparing to ship to FBA in advance
- Order inventory early
Start ordering your inventory from suppliers 7 to 9 weeks before Q4 begins. The earlier you start planning, the more time you will have to prepare and ship your inventory to FBA.
- Ship inventory in beforehand
It is advisable to ship your inventory to FBA at least one month before the start of Q4. However, carefully plan your inventory amounts considering peak storage fees during Q4. Use Amazon’s FBA Inventory report to review your inventory status before Q4.
Ensure your inventory arrives at Amazon’s fulfillment centers before November 13 for Black Friday and Cyber Monday, and no later than December 3 for the Christmas holiday. This will give Amazon time to process your inventory and make it available for purchase.
- Check/expand your inventory capacity limits
Before preparing your shipments for Q4, check your recommended replenishment quantities and your capacity limits. You can view your capacity limits and usage in the Capacity Monitor at the bottom of the FBA dashboard. It shows your current capacity usage and remaining capacity for new shipments, along with estimated limits for the next three months.
You can request additional capacity for a reservation fee in the Capacity Manager.
Strategy 5. Apply effective price models for Q4
Effective pricing strategies during Q4 are crucial for growing sales, maximizing profits, and staying competitive.
Key price models for Q4
- Dynamic pricing
Adjust prices in real-time based on demand, competition, and inventory levels. Utilize Amazon's pricing tools to manage this efficiently.
- Bundling and cross-selling
Increase your average order value by offering discounts on complementary items.
- Price matching and competitive analysis
Implement a price-matching policy and regularly monitor your competitors' prices to stay competitive.
- Repricing software
Automate your pricing decisions using advanced pricing and repricing tools based on predefined strategies and goals.
Tip. To effectively reprice your products, use repricer software available in your Seller Assistant account. Seller Assistant integrates product sourcing and repricing with Feedvisor, an AI-driven performance optimization platform for Amazon sellers and brands. Feedvisor's advanced technology enhances visibility, profitability, automates repricing, and improves operational efficiency.
10 Essential Q4 Tips
As you prepare for Q4, it's crucial to avoid and minimize potential pitfalls. Here are some essential do's and don'ts to help you navigate the busiest shopping period of the year effectively.
Tip 1. Plan your budget early
Start saving and preparing your budget well in advance. Having sufficient funds will enable you to invest in inventory, ensuring you can meet the increased demand and capitalize on sales opportunities.
Tip 2. Clear out aged inventory
Remove aged inventory from Amazon warehouses to make room for newer items. This helps you avoid unnecessary storage costs and allows you to stock up on products likely to sell well during Q4.
Tip 3. Optimize for FBA Peak Storage Fees
Be mindful of Amazon’s peak storage fees, which increase during Q4. Optimize your inventory by calculating your storage needs ahead of time to minimize costs and avoid stockouts.
Tip 4. Launch early promotions
Start offering your holiday deals a month before the actual holiday. Early promotions capture early shoppers and help spread out demand, reducing the risk of inventory shortages and shipping delays closer to the holiday.
Tip 5. Focus on proven bestsellers
Look into innovative products that have been popular for several years in a row. Consistent bestsellers can provide a reliable revenue stream, as customers often look for tried-and-true favorites.
Tip 6. Be wary of trendy products of the day
Exercise caution when reselling trendy products, as competition can be very high and trends can change rapidly. Investing heavily in such products can be risky if the trend fades before the holidays.
Tip 7. Don’t overlook everyday products
Don’t overlook regular, everyday products during Q4. Many customers continue to purchase non-holiday items, so maintaining a well-rounded inventory can boost overall sales.
Tip 8. Avoid testing new categories
Refrain from introducing entirely new product categories specifically for Q4. Instead, test new products during regular periods to gauge their sales potential and adjust your strategy accordingly.
Tip 9. Maintain consistent pricing
Avoid slashing prices right before the holiday, as many shoppers make last-minute purchases regardless of price. Maintain steady pricing to maximize profits from those willing to pay a premium for convenience.
Tip 10. Leverage post-holiday sales
Capitalize on post-holiday sale opportunities. Many shoppers look for deals and discounts after the holidays, so having a strategy in place for post-holiday promotions can help clear remaining inventory and boost sales.
FAQ
What does Q4 mean in Amazon?
Q4 in Amazon refers to the fourth quarter of the year, encompassing October through December, which includes major shopping events like Black Friday, Cyber Monday, and the holiday season. This period is the most lucrative and competitive time for Amazon sellers due to the significant increase in consumer spending.
What does Q4 mean in shipping?
Q4 in shipping refers to the fourth quarter of the year, encompassing October through December, which is the peak period for shipping due to increased demand from holiday shopping and major sales events. This period often results in higher shipping volumes and potential delays, making it crucial for businesses to plan and manage their logistics effectively.
How to be successful in Q4?
To be successful in Q4, focus on stocking high-demand products, offering competitive prices and promotions, and ensuring efficient inventory management and timely shipping. Additionally, choose the right high-profit products with Seller Assistant to maximize sales opportunities.
How do I plan for Q4?
To plan for Q4, start by forecasting demand and ordering inventory well in advance, while also preparing competitive pricing and promotional strategies. Additionally, ensure your logistics are in place for timely shipping.
How to prepare for the 4th quarter?
To prepare for the 4th quarter, forecast demand and secure your inventory early, and develop competitive pricing and promotional strategies. Additionally, ensure your logistics are efficient for timely shipping.
How long does Q4 last?
Q4 lasts for three months, from October 1 to December 31. This period includes major shopping events such as Black Friday, Cyber Monday, and the holiday season.
Final Thoughts
Q4 is quickly approaching, so it's crucial to start planning your Amazon selling strategies now. By following the tips in this post, you can set yourself up for success and maximize your sales during this peak season.
Focus on high-demand products and offer competitive prices and promotions. Ensure your inventory is stocked and ready to ship promptly. Utilize social media and other channels to promote your products and reach more potential customers.
Select winning products with the help of Seller Assistant. This comprehensive product sourcing software includes features Price List Analyzer, Seller Spy, Side Panel View, FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, IP Alert, Restrictions Checker, and more to help you identify high-profit deals efficiently.