Amazon has done it again: Against the muted expectations of analysts and most brands, Amazon achieved record sales during Black Friday and Cyber Monday (BFCM).
So what are the implications for brands?
In short: Sales are up, but it’s not what it seems.
Here are three takeaways you should know about:
1. Inflation was a key driver of growth
With brands passing on price increases to customers over the last 12 months, BFCM growth was mainly driven by price effects.
So don’t celebrate sales growth in dollar values too soon. Instead, make sure to analyse your year-on-year sales volume growth in per cent.
2. Shoppers eagerly awaited discounts
As consumers feel the effects of inflation, many took the last chance of the year to snap up a bargain.
Christmas gift shopping may have already started during Amazon’s Prime Fall event. But that didn’t stop shoppers from spending on restockable, giftable, and household items in BFCM.
3. Brands played it safe
Most vendors and sellers focused on items with a proven track record on Amazon.
That’s why top-selling items were the default choice of brands during the BFCM event.
For further insight and support, contact Martin Heubel, Founder and Director of Consulterce, a strategy consultancy for B2C Household & CPG brands (Email: [email protected])
