What is Q3?
Q3 represents a transition period for Amazon - shifting from the intense mid-year sales event (Prime Day) toward the upcoming holiday and Q4 peak season.
It’s a time when Amazon and vendors evaluate Prime Day performance, rebalance inventory, and prepare marketing and supply chain operations for the largest retail months ahead.
Key Activities in Q3:
- Prime Day Review:
- Analyse sales results, profitability (PPM, PPPU), and ad efficiency (ACoS, ROAS).
- Identify winning ASINs and replenish inventory for continued sales momentum.
- Post-Prime Inventory Rebalancing:
- Clear excess stock through Warehouse Deals or promotions.
- Optimise inbound shipments for Q4 readiness.
- Seasonal Campaign Planning:
- Prepare for Back-to-School and Early Holiday marketing campaigns.
- Set up Prime Exclusive Deals (PED) or Coupons for fall events.
- Operational Efficiency:
- Monitor PIB / PIBDR (Perfect Inbound metrics) and PPOOS (Out-of-Stock rates).
- Update VLT / PLT (Vendor & Procurement Lead Times) to ensure on-time deliveries for Q4.
- Financial Health Checks:
- Review vendor profitability and promotional funding (VIR, PPA).
- Plan trade term adjustments for year-end business reviews.
Benefits for Amazon:
- Post-event stability: Normalises operations after Prime Day peaks.
- Preparation window: Builds a strong logistics foundation for Q4 surge.
- Category insights: Refines pricing and assortment strategies before the holidays.
Benefits for Vendors:
- Performance optimisation: Learn from Prime Day to refine Q4 advertising and inventory.
- Stock management: Balance overstocks and prepare new seasonal SKUs.
- Strategic positioning: Secure Q4 promotional slots and funding early.
Why It Matters:
Q3 is the bridge between mid-year execution and Q4 peak. Vendors that manage post-Prime inventory and early holiday readiness effectively are more likely to outperform competitors during the critical final quarter.
Example:
In Q3 2025 (Jul–Sep), an electronics brand analyses Prime Day ad ROI, liquidates slow-moving SKUs through Outlet Deals, and ships holiday gift bundles early to meet Q4 inbound cut-off dates.
In short:
Q3 (Third Quarter) covers July through September, focusing on post-Prime Day performance analysis, inventory optimisation, and early preparation for Q4’s holiday peak.
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