Amazon December Strategy: How to Optimise Profit as Peak Season Transitions

By mid-December, the Amazon environment typically shifts. Initially, the focus is on acceleration; now, it moves towards control. The crucial data from major events like Black Friday and Cyber Monday has been gathered. Although advertising competition remains high, the current phase demands operational precision to maintain profitability.

Consequently, key deadlines are approaching; for instance, FBA inbound cut-offs are closing. Additionally, Cost Per Clicks (CPCs) have settled at elevated levels. Meanwhile, consumer buying intent is evolving. Shoppers are moving from holiday gifting to focusing on personal spending and purchasing items for New Year’s resolutions. Therefore, the strategic decisions made over the next ten days are critical. These decisions will ultimately determine if brands exit Q4 strongly or if they face a surplus of stock entering January.

Where Leading Brands Are Focused Right Now

The most successful brands are not merely pursuing the final surge of December traffic. Instead, they are actively managing contribution margins, maintaining consistent Buy Box presence, and redirecting advertising expenditure towards evergreen and replenishment product categories.

It is anticipated that conversion rates will soften by 10-15% following the major event periods by the end of December. Consequently, every bid and keyword must be re-evaluated based on its potential return, rather than simply its volume.

Brands that began December with over 45 days of FBA coverage are now well-positioned to safeguard their product rankings. Conversely, competitor accounts operating with leaner inventory face challenges such as delayed inbound shipments and subsequently reduced visibility.

The Real Q4 Measure: Efficiency, Not Just Exposure

Focusing only on revenue does not provide a full picture. This quarter has truly tested every brand’s ability to balance scale with maintaining profitability. In fact, brands that built Q4 forecasting models around TACoS efficiency and protecting their margin have performed better. This trend is especially true when compared to those who just chased higher top-line sales. Therefore, daily bid recalibration, placement weighting, and product-level profit analysis are now key differentiators. These actions separate an efficient quarter from a costly one.

What Data Is Telling Us

Cost Per Click (CPC) inflation remains steady, increasing by about 20% year-over-year. However, for brands that successfully control their ‘Top of Search’ exposure, placement efficiency has improved. In the last two weeks, Sponsored Display retargeting has been highly effective. It has delivered stronger returns compared to upper-funnel Prospecting campaigns.

Furthermore, promotional elasticity is currently flattening. This means that offering deep discounts is no longer resulting in a proportional increase in sales volume. Consequently, this month is an essential time for analysis. Every insight gained from the fourth quarter must be used to inform the efficiency frameworks and stock planning for January.

Preparing For January Momentum

The coming month rewards brands that pivot early. Therefore, the plan involves creating fresh creative content that moves away from gifting themes. Furthermore, building Subscribe & Save retention flows will be a key focus. Additionally, preparations will be made to capitalise on the “self-purchase” categories, such as health, wellness, and organisation.

Market Rocket partners with over 100 brands navigating this exact phase, helping them transition successfully from Q4 velocity to Q1 profitability. If a brand would like to benchmark its December performance against current category trends, simply get in touch.

Want to see your Amazon performance skyrocket?  Book a call with our team or email us at amazon@marketrocket.co.uk to take your brand to the next level.