As we picture Amazon Prime Big Deal Days, Black Friday, or Cyber Monday, the first thing that comes to mind is record-breaking sales charts and record-breaking traffic. These are being heralded as golden moments for brand awareness and acquisition of new customers. And sure, the numbers do literally read good on paper—units sold increase, rankings see a spike, and ad dashboards are running at maximum capacity.
But take a step back, and the truth is more complex. Behind the thrill of the hype, these big-box sale events can quietly strip away profitability and throw a seller’s business rhythm into disarray. Sellers don’t always speak about this openly, but it is something that nearly everyone experiences at one point or another.
The Calm Before the Storm: Why Sales Dip Ahead of Events
The weeks leading up to a major sale witness major changes in the behavior of customers. Buyers who normally buy your product today hold on to it hoping to get a discount during the sale. This “holding pattern” lasts two to three weeks, and it proves to be a sales dip for most vendors that can be observed.
This drop is not an indicator of demand for product disappearing—it’s a delay. It can be maddening on cash flow, momentum, and campaign performance, though. For the people who count on consistent weekly sales, this lead-up slowdown can feel like crashing into a wall just when stability is most required.
Advertising Costs Skyrocket
A second challenge is in advertising. With all brands vying for the same group of high-intent shoppers, the price of clicks skyrockets. Amazon PPC auctions become more competitive, forcing up bids and making it more costly to stay in the limelight.
This sets up a difficult balancing act: by cutting bids, you could lose visibility at precisely the moment when traffic spikes. If you increase bids to stay competitive, you often end up spending heavily for sales that already come with reduced profit margins due to discounts.
The Profitability Trap
On the surface, sales volume during events looks impressive. But what happens when you account for all the costs—discounts, higher ad spend, increased returns, and sometimes additional fulfillment fees? The profit picture often looks less exciting.
For some products, sellers discover that their “best sales day ever” brought in plenty of orders but little to no profit. Otherwise, they might make losses and claim it as an investment for long-term exposure. This may be understandable in some situations, but it is not a viable method if done repeatedly without a proper plan.
Finding the Right Balance
Does that mean they should steer clear of large events? Not at all. Events continue to be some of the largest opportunities to gain new customers, clear inventory, and build brand presence. The trick is to execute them strategically.
Successful sellers don’t mindlessly pursue volume. Rather, they carefully plan: ensuring their inventory levels are in line with realistic demand projections, tracking ad spend closely, and implementing clear rules for margin protection. Some even concentrate on promoting specific products that can withstand discounts better, instead of attempting to discount their entire repertoire.
In short, the winners of such events are not those who sell the greatest quantity but those who sell wisely.
Final Thoughts
Great sales events like Prime Big Deal Days are a blessing and a curse. They’re both unparalleled in traffic and visibility, but they’re also accompanied by unseen expenses—pre-sales slumps, increased advertising competition, and slimmer profit margins.
The distinction between a successful seller and an infuriated one usually boils down to preparation. When you go into these events pursuing volume no matter what the cost, you can lose your profit margin. But if you approach with a strategy—handling inventory, capping ad spend, and covering margins—you can partake in the upside without getting caught in the profitability trap.
In the end of the day, volume is good on paper, but profits keep your business running. Sellers who keep this balance in mind will emerge from large events better than the competition.
