Record-breaking sales of Amazon over the holiday weekend – Will it last until the end of 2022?

During Cyber Monday, and over the days preceding Thanksgiving, people were in a bullish mood with their buying habits on Amazon, which facilitated their appetite. This optimism can be a great opportunity for newbie investors to venture and learn how to buy shares and why Amazon share is a good catch. Reports are out that Amazon sent out products worth hundreds of millions in the period, shifting the highly expected opinion of a poor retail sales period in Q4, on every investor’s mind. The turnaround to Amazon’s sales outlook after Black Friday and Cyber Monday is a shocker because of the widely expected slump in the same period. Other retailers initially cut their sales expectations over the period because of the poor results reported in October and the weeks leading to December.

Investors’ doubts in Q4

Indeed, unlike most years, 2022 is difficult because of the obvious economic factors that are affecting production. On top is inflation, a spending killer, especially for those on low incomes. Initially, it had been difficult to ascertain how heavy the impact inflation would have on retail sales. October figures highlighted a resurgence, with a noteworthy growth rate–a change from the previous months.

However, the change did not match or was not greater than the year-on-year retail sales comparison over the same period last year. The surprise U-turn of Amazon’s sales expectations in the final weeks of October is a reason to change the negative thinking about retail growth sales around Christmas.
Another factor that has hampered production is the steep rise in fuel prices. Fuel hit the over $100 mark in 2022, ushering in a period of high logistic costs, which increased the cost of goods and services while hampering the production of others entirely.

Amazon’s record-breaking sales

The e-commerce giant is yet to publish figures that will show the extent of record-breaking sales–the term it uses to refer to the beehive of activities that took place in the platform in the last week of November. Analysts are yet to make concrete reports on how the sales will impact the retail economy as Christmas approaches.
The qualitative data released by the company remains relevant for players in the eCommerce sector and other parties involved. Instead of the usual raw numbers, Amazon highlighted the top items demanded by the consumer in the period.

While exact figures about the impressive sales remain top secret, some products that saw high demand in the weeks after Thanksgiving tells a story about people’s buying habits in the weeks leading to Christmas. Apple’s AirPods, Echo dot smart speakers, and streaming devices such as the firestick were high on the list of most demanded items.

Home items topped the list, followed by Amazon devices, toys, and beauty products. The figures highlight a significant shift in buying habits now when inflation is still high. People are starting to spend their money on non-essentials, which might be the boost the retail sector needs as Christmas approaches.

A tough quarter

While the retail figures provided by Amazon sound impressive on paper, they still highlight a grim period ahead for the retail sector. In Q3, Amazon posted figures in the region of double digits. However, in Q4, the figures might not exceed 10 percent, which is a worrying trend for other retail owners and shareholders. Other retail players, such as Target, hold a similar sentiment to Amazon. Target announced a significant period in the final weeks of Q3 and mentioned that the period is monumental in sales, before slashing their holiday expectations.

Conclusion

Amazon’s latest record-breaking sales are evidence of consumer resilience. The year 2022 has provided the consumer with the most difficult decisions to make so far, which has seen many people prefer to buy essentials until the market outlook changes. However, while Amazon’s figure seems impressive, retail activities during the Christmas period might not surpass expectations.