Q4

Q4 is Amazon’s peak performance quarter, driving the highest sales volume of the year. It includes major global retail events like Prime Day 2 (PD2), Black Friday, Cyber Monday, and the Christmas holiday period.
During Q4, Amazon focuses on maximising revenue, maintaining high instock rates, and ensuring flawless fulfilment operations under extreme order pressure.

Key Activities in Q4:

• Major Sales Events:
  • Prime Day 2 (PD2): Usually held in October, serving as an early holiday kickoff.
  • Black Friday & Cyber Monday (BFCM): Massive discount events driving traffic spikes.
  • Holiday Season: December gift shopping and post-holiday clearance.
• Inventory & Fulfilment:
  • Final inbound shipments to meet cut-off deadlines for peak.
  • Close monitoring of OOS (Out-of-Stock) and PPOOS metrics.
  • Optimising PIB (Perfect Inbound) to ensure supply continuity.
• Advertising & Promotions:
  • Aggressive PPC campaigns and Sponsored Ads to capture peak demand.
  • Strategic deal placement - Lightning Deals, Prime Exclusive Deals (PED), and Coupons.
  • Enhanced Brand Content (A+), videos, and holiday storefront updates.
• Financial & Vendor Management:
  • Review of trade terms and year-end VIR (Volume Incentive Rates) or rebates.
  • Profitability analysis using PPM, PPPU, and PPV metrics.
  • Annual performance evaluations and negotiation groundwork for next year.

Benefits for Amazon:

• Revenue concentration: Q4 contributes the largest share of annual revenue.
• Customer acquisition: Holiday promotions attract new Prime subscribers.
• Ecosystem dominance: Strengthens Amazon’s position across retail, entertainment, and logistics.

Benefits for Vendors:

• Sales peak: Opportunity to achieve highest sell-through and revenue.
• Visibility boost: Strong Q4 campaigns improve organic ranking and brand presence.
• Long-term growth: Successful execution leads to favourable vendor negotiations in Q1.

Challenges:

• Operational pressure: Fulfilment centres operate near capacity.
• High competition: Increased ad costs and discount expectations.
• Forecast volatility: Demand surges can create OOS or overstock risks.

Why It Matters:
Q4 defines annual success for both Amazon and its vendors. Performance in this quarter determines yearly profitability, category leadership, and vendor scorecard outcomes.

Example:
In Q4 2025 (Oct–Dec), a home electronics brand executes its Black Friday and Cyber Monday campaigns, maintains a 98% instock rate, and finishes the year with a +25% YoY revenue increase driven by strong Prime and holiday promotions.

In short:
Q4 (Fourth Quarter) covers October through December - Amazon’s peak season marked by Prime Day 2, Black Friday, Cyber Monday, and holiday sales, making it the most important quarter for revenue and performance outcomes.