The Amazon Holiday Selling Guide: 6 Clever Advertising Strategies to Drive Sales

Cyber Week 2023 results are in – and they’re better than expected. According to data from Adobe Analytics, Cyber Week brought in approximately $38 billion, up 7.8% from 2022. Shoppers spent a total of $12.4 billion on Cyber Monday (9.6% YoY increase), slightly surpassing Adobe’s initial projection and making 11/27/23 the biggest online shopping day in history.

“The 2023 holiday shopping season began with a lot of uncertainty, as consumers shifted their spending to services, while dealing with rising costs across different facets of their lives,” said Vivek Pandya, a lead analyst at Adobe Digital Insights, in a statement. “The record online spending across Cyber Week, however, shows the impact that discounts can have on consumer demand.”

Amazon’s Cyber Week 2023 Results

Amazon reported equally strong results. While it typically doesn’t release sales figures, Amazon confirmed that its Black Friday and Cyber Monday holiday shopping events (which actually took place from November 17 to November 27) generated more revenue than the same 11-day period in previous years. Below are a few key callouts from Amazon’s Cyber Week performance:

• Customers around the world purchased more than one billion items on Amazon
• Amazon shoppers saw a nearly 70% increase in savings
• Amazon hosted the first-ever Black Friday NFL football game, which featured shoppable ads available to all customers (not just Prime Members)
• Buy with Prime orders surged 300% versus the daily average for October 2023

Cyber Week 2023: Predictions vs. Results

Each fall, Adobe releases its annual holiday shopping forecast – one of the most respected reports detailing consumer trends for Cyber Week. Below is a rundown of Adobe’s top predictions for this year, along with the actual results.

PREDICTION #1: Cyber Week will drive a record-setting $37.2 billion in online spending, up 5.4% YoY.

• ACTUAL: Consumers spent $38 billion overall online during Cyber Week 2023, up 7.8% YoY.

PREDICTION #2: For the first time, more than half of this year’s holiday spending will take place on mobile devices.

• ACTUAL: Mobile devices accounted for $5.3 billion in sales on Black Friday, up 10.4% YoY, representing 54% of online sales.

PREDICTION #3: A record number of shoppers will use Buy Now, Pay Later during Cyber Week 2023.

• ACTUAL: Buy Now, Pay Later hit a record high on Cyber Monday, generating $940 million in online spending, up 42.5% YoY.

PREDICTION #4: Brands will offer record discounts during Cyber Week to attract shoppers.

• ACTUAL: Average discounts on toys peaked at 35% off the listed price, electronics peaked at 30%, apparel peaked at 23%, and appliances peaked at 18%.

One Last Tip for Analyzing Your Brand’s Cyber Week Performance

One of the biggest mistakes a brand can make when evaluating Cyber Week performance is not considering its lifetime value. Many brands focus on the initial sale performance and not the value it will bring down the line. For example, a single purchase during Black Friday or Cyber Monday can lead to multiple purchases down the road. Remember, your holiday discounts, ad placements, and pricing strategy are investments in the future growth of your business. A disappointing Cyber Week performance (in terms of immediate revenue) can become profitable over time.

Channel Key Takeaway

By all accounts, Cyber Week 2023 was a success. The multi-day event generated a record $38 billion in sales. However, it’s important to note that Cyber Week has changed significantly over the years – largely due to Amazon. For example, Amazon’s Cyber Week began November 17 and lasted a full eleven days. Also, this is the second year in a row that Amazon hosted a fall Prime event. This year’s Prime Big Deal Days, which took place in October, generated an estimated $8 billion in sales. Some analysts argue these events cannibalize sales from Cyber Week.

The point is: holiday shopping continues to evolve. It’s important for brands to stay ahead of these changes rather than risk falling behind. With this in mind, Channel Key recommends continuing your advertising and promotions during the weeks leading up to Christmas – just like Amazon is doing. The ecommerce giant announced it will be dropping new deals every day through December 24. Use this time to promote your best-selling products and reengage with shoppers who browsed items but didn’t make a purchase. On behalf of all the Amazon experts at Channel Key, we wish you and your brand continued success during the final stretch of the holiday shopping season.

Amazon’s Black Friday event will take place from Friday, November 17, through Monday, November 27. This eleven-day timespan is one of the most important shopping events of the year on Amazon. With competition at its peak, brands need to take every precaution to maximize their potential for success. This easy-to-follow checklist outlines the eleven essential steps to a profitable Cyber Week for your brand.

• Plan Your Inventory
  Amazon recommended that inventory arrived at fulfillment centers by October 26, 2023 for Black Friday and Cyber Monday deal events. Now that this deadline has passed, be sure to monitor your inventory levels carefully and use small parcel shipments to restock products when necessary.
• Optimize Your Product Detail Pages
  Ensure your product detail pages are fully optimized and retail ready – especially the ASINs you plan to promote during Cyber Week. While Amazon doesn’t allow words like “deal” or “sale,” you can include holiday-related terms to attract shoppers searching for gifts.
• Choose the Right Products to Promote
  To stand out during Cyber Week, you need to offer steep discounts and increase your ad spend. Maximize profit by promoting top-selling, giftable ASINs that have a high search volume, high-profit margin, and enough inventory to support your sales targets.
• Curate Your Amazon Store
  Reorganize your Brand Store so that your Cyber Week offers are displayed prominently on the homepage. This takes little time and offers customers an easy way to browse your best deals. It also provides a landing page that you can share with your customers off Amazon.
• Plan Your Promotions
  Customers want the best deals during Cyber Week. Make sure your promotions offer competitive discounts. If you have missed the Cyber Week submission deadline for certain Deals, consider running a buy one/get one free or percentage off promotion.
• Prepare Your Return Policy
  Customer service is Amazon’s top priority. To provide shoppers with the best holiday shopping experience, ensure your return policy is fast, hassle-free, and clearly stated on your product detail pages.
• Ensure Your Amazon Account Health
  Check Seller Central for any Performance Notifications. Be sure to address any warnings, violations, complaints, or other issues promptly. Make sure your account is in good standing to prevent listing suppressions or account suspensions during Cyber Week.
• Increase Amazon Ad Spend
  CPC costs rise significantly during high-volume events like Cyber Week. To ensure visibility, increase your bids for keywords and overall ad budget. Monitor the performance of your campaigns frequently and make adjustments to maximize performance.
• Leverage External Traffic Drivers
  The more external traffic you drive to your Cyber Week deals, the more sales you will generate. Updating your website with Cyber Week messaging and leveraging social media and email marketing will help funnel customers to your Brand Store and product detail pages.
• Track Your Performance
  Analyze your Cyber Week performance. What were your best-converting promotions and most successful ad campaigns? Use these insights to understand what your customers are shopping for and focus on these areas throughout the rest of the shopping season.
• Keep Your Sales Momentum Going
  Be sure your holiday marketing strategy continues after Cyber Week. Data shows that the two weeks leading up to Christmas often generate the same Black Friday level of sales. Keep your advertising and promotions running during this time to maximize holiday sales.

Download the 2023 Cyber Week Checklist

Channel Key Takeaway

In its 2023 U.S. Holiday Shopping Forecast, Adobe projects customers will drive $221.8 billion in sales, a 4.8% increase from last year. According to the report, Cyber Week (Thanksgiving to Cyber Monday) will grow 5.4% YoY and generate $37.2 billion, accounting for 16.8% of the entire season’s revenue. To incentivize stronger consumer spending and growth while also offloading excess inventory, Adobe expects retailers to offer double-digit seasonal discounts within the range of 12-35%. On Amazon, Channel Key predicts this year’s Cyber Week deals will be the most competitive yet. Brands need to take every precaution to ensure their products stand out, drive traffic, and convert customers during the busiest shopping week of the holiday season.

The results are in for Turkey 5 (also known as Cyber Week). U.S. shoppers spent an estimated $35.27 billion online overall during the five days from Thanksgiving through Cyber Monday. This is a 4% increase from 2021. While many analysts describe this performance as underwhelming, it is important to keep in mind that expectations were even lower. Adobe’s initial 2022 Holiday Shopping Forecast estimated total sales would grow by only 2.5%. Below is a breakdown of how Thanksgiving, Black Friday, and Cyber Monday compared with the previous two years.

Top Turkey 5/Cyber Week Callouts

Amazon announced that customers purchased a record number of products during this year’s Turkey 5. While the company doesn’t release sales figures, it stated that small businesses generated over $1 billion in sales over the five-day stretch. The best-selling categories were Home, Fashion, Toys, Beauty, and Amazon Devices.

“This was a record-breaking holiday shopping weekend for Amazon,” said Doug Herrington, CEO, WW Amazon Stores. “Customers shopped millions of deals this weekend and we have many more amazing deals to come. Thank you to our customers for choosing to shop on Amazon, and to our employees and selling partners around the world who are delivering for customers every day.”

According to the National Retail Federation, 196.7 million people shopped in stores and online during Turkey 5, up 17 million from 2021. As expected, Cyber Monday was the best-performing day of the holiday season so far. Customers spent $11.3 billion online this year, compared to $10.8 billion during Cyber Monday 2021. The Adobe chart below shows the daily spend for the holiday season since the beginning of October.

Channel Key Client Performance During Turkey 5

Overall, Channel Key clients enjoyed strong results compared to the national average, with many exceeding their projections. Below is a sample of how clients in four different categories performed during this year’s Turkey 5:

• Electronics Client: 138% YoY Increase
• Books Client: 138% YoY Increase
• Home & Kitchen Client: 44% YoY Increase
• Pet Supplies Client: 40% YoY Increase

As predicted, Prime Exclusive Discounts generated the best results, accounting for up to 20% of total sales for some clients during Turkey 5.  The success of Prime Exclusive Discounts is likely due to two reasons: 1) holiday shoppers are searching for the best deals they can find, and 2) Amazon highlights these promotions by showing a discounted price with the regular price crossed out. Buyers also see a savings summary in search results and on product detail pages. Prices adjusted for discounts are displayed on the Featured Offer detail page for Prime members. Since Turkey 5 is Amazon’s busiest shopping week of the year, Prime Exclusive Discounts have proven to be a cost-effective way to promote products to shoppers who are ready to spend.

Channel Key Takeaway

Inflation is the biggest factor this holiday season. As prices of everyday goods continue to rise, customers simply have less money to spend. Brands should consider the 4% growth in spending during Turkey 5 as good news – especially when considering sales dropped last year (for the first time in history). With several weeks left in the season, there is still time for brands to harness the holiday spending momentum. Channel Key recommends continuing to run the promotions and marketing levers that worked best for you during Turkey 5. Traffic to Amazon will certainly decline over the next couple of weeks, but last-minute holiday shopping will still provide an opportunity for brands to generate meaningful sales before the new year.

By now, you’ve probably seen the headlines about Cyber Week 2021. Reporters and analysts used words like lackluster and underwhelming to describe sales results for the most anticipated shopping week of the year. Customers reportedly spent a total of $8.9 billion, falling short of the $9 billion spent in 2020. This marks the first time that Cyber Week sales dropped year-over-year. But not all brands experienced a disappointing shopping weekend. For Channel Key clients, it was quite the opposite.

Cyber Week 2021: Channel Key Client Performance Data

Despite the national decline in total sales, Channel Key clients enjoyed an average year-over-year sales increase of 21.7% during Cyber Week. This growth comes even as total sessions dropped by 14.3%. Overall, most of our clients exceeded their Cyber Week projections. To provide a more granular understanding of how our clients performed, we’ve broken down the data into three subsets in the following table:

One of the most important callouts this season was the overall change in competition among CPC advertising. While ad spend for Sponsored Products and Sponsored Brands increased only modestly from 2020, the average CPC rose significantly during Cyber Week.

According to Pacvue’s 2021 Cyber 5 CPC Report, Sponsored Brands CPC rose 27.22% week-over-week and grew 27% year-over-year on Black Friday. Cyber Monday CPCs for Sponsored Brands rose 34.86% week-over-week and were up 11.32% year-over-year at $2.36. The Saturday and Sunday between Black Friday and Cyber Monday saw Sponsored Brands CPCs up 29.11% and 39.73% in 2021 compared to 2020.

Sponsored Products also saw year-over-year CPC growth this year, increasing 25% on Black Friday and 14.61% on Cyber Monday. This represented a 50.74% week-over-week increase in CPC for Black Friday and a 48.91% increase for Cyber Monday.

Cyber Week 2021: The Good News

The most cited and trusted source for Cyber Week sales figures is Adobe. As part of the Adobe Digital Economy Index, Adobe provides a comprehensive view of U.S. ecommerce by analyzing direct consumer transactions online. Based on Adobe Analytics data, the analysis covers over one trillion visits to U.S. retail sites, 100 million SKUs, and 18 product categories.

Adobe reports that consumers spent a total of $10.7 billion on Cyber Monday this year, which is down 1.4% from the previous year. This is about $100 million short of what shoppers spent in 2020. Still, Cyber Monday has been the largest online shopping day of 2021. In the peak hour (11pm-12am ET), consumers spent a whopping $12 million every minute.

Even with a decline in Cyber Week sales, it is important to note that year-over-year sales for the month of November actually grew. According to Adobe, Americans spent $109.8 billion online from November 1 – 29, an increase of 11.9%.

Lastly, Small Business Saturday was a success. American Express reported that shoppers spent $23.3 billion in the U.S., up 18% from 2020. While ecommerce sales for Small Business Saturday grew by only 2%, the momentum for local shopping remains strong.

Additional Insights for the 2021 Holiday Shopping Season:

• Shopping Carts Are Getting Larger: Consumers saw the final price point of their shopping carts jump 13.9% on Cyber Monday (up 19% in the season overall). This indicates that some are buying bigger ticket items, such as furniture, while others are feeling the effects of persistent online inflation.
• Discounts Remain Weak: On Cyber Monday, discount levels for electronics were at –12% (vs –27 percent last year), TVs at –13 percent (vs –18 percent last year), apparel at –18 percent (vs –20 percent last year), sporting goods at –8 percent (vs –20 percent last year), appliances at –8 percent (vs –20 percent last year).
• Out-of-Stock Remains High: On Cyber Monday, the prevalence of out-of-stock messages was up 8% compared to the previous week. For the month of November, out-of-stock messages are up 169% compared to pre-pandemic levels. Adobe predicts this will persist through the rest of 2021.
• Buy Now Pay Later (BNPL) Sees an Uptick: On Cyber Monday, usage of BNPL sales increased 21%. This is the first time this season that BNPL usage has not slowed.
• Curbside Pickup Remains Popular: Shoppers opted for curbside pickup in 18% of all online orders on Cyber Monday (for retailers that offer the service), compared 20% last year. The durable demand for curbside pickup continues to show the value of physical stores.
• Mobile Shopping Hits a Wall: On Cyber Monday, smartphones accounted for just 39.7% of online sales (vs. desktop), up 8.4% YoY. With many consumers working from home, smartphones are losing some of its potential as a major shopping channel. For years, the trajectory showed mobile was on course to surpass the 50% mark in share of online sales, which has since been derailed. According to Adobe, consumers use their phones to browse instead (mobile accounted for 57% share of web visits during Cyber Monday).

Channel Key Takeaway

Despite the strong performance of Channel Key Clients, Cyber Week fell short of expectations across the retail industry. Adobe attributes this decline to several factors unique to the 2021 holiday shopping season. “With early deals in October, consumers were not waiting around for discounts on big shopping days like Cyber Monday and Black Friday,” said Taylor Schreiner, director of Adobe Digital Insights, in a statement. “This was further fueled by growing awareness of supply chain challenges and product availability.”

The good news is the shopping season is not over yet. If ecommerce continues its current overall trajectory, Adobe predicts online holiday sales in the U.S. will top $200 billion for the first time. So far, consumers have spent $109.8 billion. That leaves another $90 billion and change up for grabs. With a few weeks to go, there is still time for brands to move the needle forward and close out the year on a high note.

Amazon Cyber Week is one of the most important shopping events for sellers. Also known as Cyber Five because it includes the days between Thanksgiving and Cyber Monday, Cyber Week is a relatively new term in ecommerce that underscores how Black Friday has evolved into something much more. This seasonal event is a golden opportunity for brands to boost sales from shoppers who are hungry for deals, but there is one mistake that is all but certain to hinder your success.

Amazon Cyber Week is Now Part of Black November

The first Black Friday took place in Philadelphia during the 1950s. Since then, it has become one of the busiest shopping days of the year. People all over the country wake up at the break of dawn to flood their favorite retail outlets in anticipation of jaw-dropping deals. It’s shopping madness. At least, it used to be.

The pandemic changed Black Friday – probably forever. Foot traffic to brick-and-mortar stores fell 52% in 2020, according to Adobe Analytics. Many shoppers didn’t want the hassle of in-store capacity restrictions. Others feared large groups due to the risk of contagion. Perhaps most of all, it was easier to find deals online. Not only were most major retailers hosting their own Cyber Week events, but many had started in early November. Walmart launched Black Friday for Days, an online sale that turned one day into three separate events. Target hosted Black Friday Now deals, which took place across multiple Thursdays. Countless other retailers ran similar promotions.

The same thing is taking place this year. Walmart just announced that Black Friday deals will take place through the month of November. Lowes is launching its “Season of Savings” sale on October 28, which will offer new deals every week through December. Over at Amazon, holiday shopping has been in full swing for weeks. The retail giant began “Black Friday-worthy” deals at the beginning of October, and recently announced it has already sold one million toys for the holiday season.

The key takeaway here is that Black Friday has become Black November. The change culminated last year when the pandemic forced Amazon to push its annual Prime Day event to October. The highly anticipated event generated more than $10 billion in 48 hours and brought customers into an early holiday shopping spirit. Customers enjoyed incredible deals last October, many of which rivaled Black Friday savings. This created an appetite for early holiday savings, which retailers have jumped on.

Amazon Cyber Week 2021: Three Challenges for Brands

Cyber Week 2020 broke just about every record possible. Not surprisingly, e-commerce dominated sales. Adobe Analytics reported that Cyber Week generated a total of $34.4 billion, a 20.7% YoY increase from 2019. More than a third of this spending took place during Cyber Monday, making it the largest online shopping day in U.S. history. Amazon reported independent businesses surpassed $4.8 billion in worldwide sales from Black Friday through Cyber Monday, a 60% YoY increase.

This year also looks promising. A recent report by eMarketer forecasts U.S. retail holiday online sales will rise 11.3% to $206.88 billion. Analysts predict total holiday sales in 2021 will reach $1.1 trillion, which means e-commerce will account for a record 18.9% of holiday shopping.

Despite a positive outlook, the 2021 holiday shopping season will not be without its problems. Many people are tired of talking about COVID-19, but the pandemic is not done with us. The following are the three most important factors expected to impact brands and retailers this holiday season:

• Raw Material Shortages
  Brands can’t manufacture goods if they don’t have access to raw materials. According to a recent report by the Institute for Supply Management (ISM), companies and their suppliers “continue to struggle to meet increasing levels of demand.” It’s not just a problem in the U.S. The entire world is seemingly low on copper, iron ore, steel, corn, coffee, wheat, soybeans, lumber, semiconductors, plastic, cardboard for packaging – you name it. This kind of shortage has a snowball effect leading into the holiday season. Manufacturers anticipate even higher demand this year and are stocking up as much raw material as they can find, further aggravating the global shortage.

• Logistics Barriers
  Companies depend on a vast network of ports, container vessels, and trucking companies to move goods around the world. The growth of ecommerce has bottlenecked this industry. According to reports, it takes retailers an average of 1.5 days longer to fulfill orders since the outbreak of COVID-19. Increased volume, staff shortages, and social distancing guidelines caused significant delays in shipping and receiving. This translates to an increase in costs for every part of the supply chain during the holiday season.
• Labor Shortages
  Rarely a day passes without a major news outlet reporting on the increased demand for workers. This amplifies the impact of raw material shortages and logistic barriers. A recent Washington Post article summarized it with the following headline: How the Delta Variant Stole Christmas: Empty Shelves, Long Waits – and Yes, Higher Prices. It’s 100% true. The labor shortage in the U.S. will pose perhaps the greatest challenge to brands this holiday shopping season. This is troubling news, considering the holiday season accounts for up to 50% of annual sales for many retailers.

Amazon Cyber Week 2021: Channel Key Takeaway

There’s no defense like a good offense. This adage is mostly associated with sports and combat, but it applies just as well to brands – especially this holiday season. In many ways, this year will look like 2020. In other ways, it will be different. Nobody knows for sure, and brands have no control over the changes taking place. What brands do have control over is how they adapt and prepare. The following marketplace strategies will help you avoid and/or overcome the most likely obstacles this holiday season.

1. Inventory Planning
   Sales and inventory forecasting is always an important part of the holiday shopping season for brands. Get your inventory to FBA warehouses as soon as possible. Last year, Amazon recommended that shoppers place holiday orders as earlier than usual to avoid shipping delays. You may remember in March 2020 when Amazon abruptly suspended inbound shipments to its fulfillment centers for non-essential items. All of this underscores the importance for brands to prepare for potential Amazon fulfillment challenges during the busiest shopping season of the year.
2. Logistics Backup Strategy
   Even with a strong inventory forecast, you might still run into challenges. Your FBA success during the holidays depends on Amazon’s ability to deliver products to your customers. Channel Key recommends that brands consider a Fulfilled by Merchant (FBM) backup strategy that will ensure you don’t lose sales due to FBA inventory challenges. This will enable you to continue selling ASINs that are unavailable in FBA by fulfilling these orders yourselves.
3. Start Holiday Marketing Now
   The biggest mistake brands can make this season is to wait until November to begin their holiday marketing. The traditional Thanksgiving/Black Friday start to holiday shopping is gone. The season now starts in October, and Cyber Week takes place across the entire month of November. The longer you wait to promote your holiday deals, the more sales you will lose to your competitors.