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Amazon after the holidays

Historically, e-commerce brands and retailers experience a decrease in sales after the holidays. Most shoppers use this time to recoup their holiday spending and use their gift cards. However, since more shoppers are regularly buying online versus in-store, we don’t expect business to slow down in Q1 of 2021 as much as it has in the past.

As we enter a new year, it will remain crucial for brands to be on top of their game to make up for any sales lost in 2020 and capitalize on increased traffic. Keep reading for five ways to continue momentum on Amazon after the holidays and why it’s important. 

Focus on Seasonal Categories if Possible 

There's a number of categories that thrive in January after the new year. Some of the classic examples include Health, Wellness, Personal Care, Home, and Fitness. Shoppers also tend to shop for discounted toys, gift wrap, and other seasonal items during this time. With this in mind, it's worth focusing on products that fall within any of the above-mentioned categories. Or, for other products, it's important to appeal to the 'New Year, New Me' mindset. This can be done through advertising or adjusting product detail pages and Amazon Stores. 

Q1 is also a great time to concentrate on accessories for top-selling products from the holidays. For example, if a TV was among a brand's best sellers, they could shift promotions to an accompanying sound system beginning in January. Simple changes like these could determine how efficient and successful the first few months of the year are for a brand.

Leverage Q4 Learnings to Maximize Q1 Success 

Data gathered in Q4 can tell a powerful story of the type of shoppers that engage with a brand. The ability to analyze data and apply it to strategy will set brands apart from their competitors. We explained how important this will be in 2021 in a recent blog post and continue to reiterate this to our clients.

Part of the data-crunching we perform at MPS includes discerning which products are best sellers for clients. We also identify products with the greatest number of page views, the highest-performing advertising campaigns, and use this knowledge to inform future strategy. There is much more to assess during this time period and throughout the year and it will be more imperative than ever in 2021.

Don’t Stop Offering Deals 

Following Black Friday, Cyber Monday, and Prime Day, shoppers are still budget-conscious and trying to finding the best deal. Because of this, brands must continue to run deals, coupons, and promotions as well as ensure their prices remain competitive.  

Products don’t have to be discounted as steeply as they were during the holidays. But even smaller discounts could make sales more likely and combat the slower nature of the first few months of the year.

Drive Traffic to Amazon Listings via Social and Email Marketing 

The beginning of the year is an important time to leverage a variety of marketing channels to elevate your brand's Amazon presence. At MPS we value an omnichannel strategy and often view Amazon through a marketing lens. In addition, our parent company, Code3, is comprised of experts in paid advertising and creative. Code3 gives brands an advantage on every digital platform by creating ads that are data-backed and personalized.

Pulling the necessary levers to succeed is at the core of our work at MPS and Code3. And we always encourage our clients and brands throughout the industry to utilize channels beyond Amazon. Doing so makes it possible to reach a broader audience, drive traffic to listings, and convert shoppers into customers. Whether a brand advertises its Amazon listings on social media or links to them within an email campaign, brands won’t regret going the extra mile. Especially during a time known for a sharp decline in sales.

Continue Investing in Amazon Advertising and DSP 

It's not uncommon for brands to pull back or even pause advertising on Amazon after the holidays. But, as we said about deals and promotions, continuing to invest in advertising is crucial. If a brand continues advertising they will reap the benefits and build off of what they accomplished in Q4. 

It's no secret advertising on Amazon has become necessary to compete and this can't be ignored during a 'down' season. Brands that advertise in Q1 will remain at the forefront of shoppers' minds while those that don't could lose the brand awareness they built during the holidays. Even if bids and budgets are smaller than usual, advertising is a key factor in continuing momentum.

Final Thoughts

While this blog post focuses primarily on Amazon, it also applies to any other online marketplace. For more on how to maximize your brand’s potential next year, tune in to our next webinar on Tuesday, December 15, at 2 PM ET. Reserve your seat to join Executive Vice President of Marketplace Strategy, Greg Wolny for an hour of insightful conversation.

If you could use the support of a strategic partner to maximize your brand’s potential in 2021, schedule a free consultation. As always, we’re here to answer any questions about your Amazon presence and efforts on other marketplaces.


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