Q1

Amazon, like most global corporations, divides its fiscal year into four quarters (Q1–Q4) for structured business performance tracking.
Q1 sets the tone for the rest of the year, capturing post-holiday sales trends, inventory resets, and new fiscal planning cycles across retail, advertising, and logistics operations.

Key Activities in Q1:

• Inventory Rebalancing: Clearing leftover holiday stock from Q4 peak season.
• Vendor Negotiations: Annual Business Agreements (ABAs), trade terms, and cost renegotiations.
• Performance Reviews: Assessment of prior year KPIs - sales, profit, instock, chargebacks, etc.
• Demand Forecasting: Planning for spring seasonality and early Prime Day prep.
• Advertising Strategy: Budget allocation and campaign resets for Sponsored Ads and brand awareness.

Benefits for Amazon:

• Financial visibility: Tracks Q1 performance to forecast full-year targets.
• Operational reset: Focuses on inventory health and supply chain efficiency post-holidays.
• Vendor alignment: Initiates new business plans and pricing structures.

Benefits for Vendors:

• Performance evaluation: Review of previous year’s results and goal-setting for the next.
• Strategic planning: Adjust assortment, promotions, and replenishment for the year ahead.
• Cash flow management: Stabilises operations after Q4 peak spending.

Why It Matters:
Q1 serves as Amazon’s foundation quarter - a critical period for resetting operations, budgets, and performance expectations after the holiday surge. Strong Q1 execution positions vendors for a more stable and profitable fiscal year.

Example:
In Q1 2025 (Jan–Mar), a home décor vendor analyses post-Christmas sales, negotiates updated trade terms, and launches spring-themed Sponsored Product campaigns to improve sell-through.

In short:
Q1 (First Quarter) covers January through March - the start of Amazon’s fiscal and operational year, focused on resetting forecasts, renegotiating vendor terms, and stabilising post-holiday performance.