From Prime Day to Peak Season: The Real Profit Story for Amazon Sellers in 2024

2024 presented a complex landscape for Amazon sellers, marked by both record-breaking sales events and unexpected profitability challenges. At Seller Snap, we analyzed performance across thousands of seller accounts to uncover the real trends behind the numbers. From July’s Prime Day surge to October’s margin compression, and from mid-year slowdowns to peak season gains, this analysis reveals when sellers outperformed, where profitability declined, and what strategies can drive more sustainable success in 2025.

Key Takeaways from 2024: Profit Margins and Revenue Trends

Prime Day Performance: July vs. October

Amazon hosted two Prime Day-style events in 2024: the flagship July Prime Day and October’s Prime Big Deal Days. While both drove significant sales volume, there are notable differences that need to be acknowledged.

Despite a slight drop in profit margins, July Prime Day proved to be a major win for sellers. Sales volumes surged, and profits increased by nearly 80% compared to an average day. The event showed that even with margin pressure, high-volume sales can deliver strong returns when paired with high-converting traffic.

In contrast, October Prime Days told a slightly different story. Although both sales and profit were solid, profitability increased by only 25% when compared to the daily average. Which is noticeably smaller than the 65% increase we witnessed in July’s Prime Day. Increased discounts and rising costs created a situation where many sellers saw strong sales but not the same expected profit changes.

Two key factors likely contributed to this outcome.
First, while ad spend surged across both events, sellers reported lower returns on ad spend during October. In categories like beauty, ad costs rose by over 80% during Prime events, yet October’s shoppers were less likely to convert, leading to inflated CPCs with lower profitability. Second, shopper intent appeared to shift. October buyers were more deal-driven and hesitant, possibly browsing ahead of bigger Q4 discounts. This led to steeper promotions without the same level of urgency to purchase, further cutting into margins.

Takeaway:
While both July and October Prime Days remain as great opportunities to achieve high sales volume and profit, October Prime Days, however, require a more cautious and selective strategy to avoid cuts in profitability, especially when factoring in advertising costs and discount pressure.

Daily change in revenue for the typical Amazon seller in 2024

Daily change in profit for the typical Amazon seller in 2024

Seasonal Profit Trends: Timing is Everything

Beyond Prime Day, 2024 profit trends revealed predictable seasonal patterns with critical insights for inventory planning and promotional timing.

In the first half of the year, sales remained stable with gradual increases leading up to summer. In September, many consumers paused purchasing as they anticipated holiday deals. This temporary lull was followed by a strong Q4 rebound. Black Friday and Cyber Monday delivered some of the year’s most profitable periods, with average daily profits rising 65-70%above baseline.

In the two weeks preceding Christmas day, profit was at its peak, and, after the holiday season bonanza, we saw the biggest profit crash of the year, reaching the worst profitable day on Christmas Day – December 25th, where profit was 25% lower than the typical day.

Shifting consumer behavior may also have influenced these seasonal patterns. Economic pressures, such as inflation and cost-of-living increases, likely contributed to the delay of purchasing decisions during the early fall. October, in particular, may have attracted more cautious, deal-focused shoppers who were holding out for steeper discounts during peak season.

In contrast, the spike in profitability during Black Friday and Cyber Monday suggests stronger buyer intent and perhaps a more decisive mindset among holiday shoppers. While these trends are not universal, they highlight the importance of understanding how macroeconomic sentiment can influence conversion timing and promotional effectiveness.

Takeaway:
Profitability is not evenly distributed throughout the year. Sellers who plan pricing, inventory, and promotions around high-conversion periods such as Prime Deal Days, Black Friday, Cyber Monday, and the holiday season are best positioned to capture outsized returns. Understanding when to hold pricing power is just as important as knowing when to discount.

Profit Margin Trends: Navigating High-Traffic Volatility

While most of 2024 saw steady profit margins, promotional events created sharp fluctuations. October’s Prime Big Deal Days led to particularly compressed margins due to a combination of deeper discounting, more competitive ad auctions, and increased fulfillment and storage fees.

Margins normalized in January as promotional pricing ended and operational costs eased.

Another potential driver of margin volatility in 2024 was the changing structure of Amazon’s storage and inventory-related fees. Increases in long-term storage fees and the introduction of penalties for low inventory levels may have added new complexity to inventory planning. Sellers were likely navigating a delicate balance — stocking enough to meet demand without incurring excess storage costs.

These shifting fee structures suggest that sellers who lacked agile forecasting and replenishment strategies may have been more exposed to margin erosion during key events.

Takeaway:
Maintaining healthy margins during high-traffic periods requires adaptable pricing, clear discount boundaries, and efficient ad spend. Sellers who track profit metrics in real time and adjust to shifting conditions can better navigate volatility.

Looking Ahead: How to Win in 2025

One of the clearest lessons from 2024 is that strong revenue does not guarantee profitability. Sellers need to adopt strategies that balance growth with cost control, especially during major events when operating expenses can quietly climb.

Recommended strategies for 2025 include:

• Be selective about participation. Not every event is worth the cost. Focus on campaigns that offer both volume and healthy margins.
• Prioritize profitability over pure sales volume. Leverage pricing tools to remain competitive while protecting your bottom line.
• Plan inventory around high-conversion periods. Events like July Prime Day, Black Friday, and Cyber Monday continue to offer the highest return potential.
• Monitor platform costs and stay agile. With advertising fees, FBA changes, and VAT fluctuations, sellers must adapt quickly to preserve profitability.

As sellers look to the future, there appears to be a growing interest in strategies that prioritize long-term profitability over short-term revenue spikes. This may reflect a broader recognition that sustainable growth requires more than just volume. It demands careful control over margins, fees, and operating costs.

While this shift is still emerging, it suggests that sellers who focus on financial clarity and operational efficiency may be better positioned to navigate increasing complexity across the marketplace.

By applying the lessons of 2024, sellers can step into 2025 with greater clarity, stronger forecasting, and more resilient operations.