Why Amazon’s 2024 Thanksgiving Shopping Event Was the Biggest Ever
Amazon’s Thanksgiving holiday shopping event, which ran from November 21 through December 2, shattered records for the company. With unprecedented sales and a record number of items sold, it marked Amazon’s largest Black Friday Week and Cyber Monday event to date. Independent sellers—mostly small and medium-sized businesses—played a pivotal role, contributing more than 60% of sales during this period.
While this success is impressive, it’s worth exploring the reasons behind these achievements and the challenges faced by sellers, whose discounted sales often resulted in tighter margins rather than a significant boost in revenue.
What Made 2024’s Thanksgiving Shopping Event So Successful?
- Global Expansion of the Turkey 12 Program One of the major drivers behind this record-breaking event was Amazon’s Turkey 12 expansion. By broadening its geographic reach and offering competitive deals in international markets, Amazon tapped into a much larger customer base than ever before. This strategy encouraged shopping from regions where holiday sales were previously less emphasized, significantly boosting overall numbers.
- Strong Customer Demand and Discounted Prices With billions in customer savings reported shoppers flocked to Amazon for deals on electronics, toys, beauty products, and more. Top-selling items included Samsung TVs, Barbie dolls, Shark vacuums, and Beats headphones, showcasing the appeal of both essentials and premium products.
- Convenience and Logistics Excellence Amazon’s robust logistics network played a crucial role. With faster shipping times, streamlined returns, and a seamless shopping experience, customers were more inclined to shop during this high-stakes event. For instance, same-day and next-day delivery options made it easier for last-minute shoppers to rely on Amazon for holiday purchases.
- Targeted Marketing and AI-Driven Insights Amazon’s use of AI tools like RUFUS for personalized recommendations and marketing proved effective in driving conversions. Tailored deals and targeted promotions reached the right customers at the right time, encouraging them to shop more.
The Flip Side: Challenges for Sellers
While Amazon celebrated its biggest Thanksgiving shopping event, many independent sellers faced unique challenges that dampened their profitability during this period.
- Diluted Margins from Heavy Discounts To compete during Black Friday Week and Cyber Monday, sellers were pressured to offer steep discounts. While this increased sales volume, it often came at the cost of diluted profit margins, especially for small businesses. Many sellers reported that their total revenue during the Turkey 12 days didn’t match the anticipated gains, leaving them questioning the long-term value of participating in these high-discount events.
- Price Wars Among Sellers The competitive nature of Amazon’s marketplace meant that sellers often engaged in price wars to secure the Buy Box. This further drove down margins, with some sellers unable to recoup the costs of advertising or promotions required to maintain visibility.
- Advertising Costs With an increased number of sellers vying for customer attention, PPC (Pay-Per-Click) advertising costs soared, reducing the overall profitability of campaigns. Sellers had to spend more just to maintain their usual level of traffic and sales.
Key Takeaways for Sellers
- Focus on Differentiation, Not Just Discounts Instead of relying solely on discounts to attract buyers, sellers should focus on differentiating their products with value-added services, unique features, or premium bundles.
- Leverage Amazon’s Tools Programs like Brand Tailored Promotions and Creators Connect offer opportunities for sellers to market their products in innovative ways without solely relying on discounts.
- Analyze Margins Before Participating Sellers should carefully evaluate whether participation in major events like Turkey 12 is sustainable for their business. While sales volume may increase, it’s crucial to ensure that these events contribute to long-term profitability rather than short-term losses.
Conclusion: A Record-Breaking Event with Mixed Outcomes
Amazon’s 2024 Thanksgiving shopping event showcased the company’s ability to scale globally, drive customer engagement, and deliver record-breaking sales. However, the impact on sellers was less universally positive.
While many businesses benefited from increased exposure, others found their profit margins squeezed by heavy discounts, higher advertising costs, and intensified competition. As Amazon continues to grow, sellers must adapt their strategies to balance participation in these massive sales events with sustainable profitability.
By leveraging tools like targeted promotions and staying mindful of margins, sellers can make the most of Amazon’s high-traffic periods without sacrificing their bottom line.
Ruben A.
CEO at PAS
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