The Psychology of Sales: Why Black Friday is a $280B Phenomenon

Last year, consumers spent a staggering $278 billion over the Black Friday Weekend. That is roughly the size of Portugal's GDP! In 2024 it is expected to be even higher. It’s not just about the discounts or the flashy ads. There’s something far more primal going on behind the scenes. Something rooted deep in human behavior.

So why does Black Friday, and shopping in general, have this hold on us? Why do we spend money on things we probably don’t need, can’t afford, or will forget about by the time the holiday season is over?

It’s all about psychology—and it’s not an accident. Retailers are experts at tapping into deeply ingrained buying patterns, making us feel things we don’t even realize we’re feeling until we’re at the checkout.

1. Scarcity Equals Value

Here’s the thing: people want what they can’t have. And retailers know it. Think about it. What do you see in every Black Friday ad? “Limited time offer!” “Only X items left in stock!” These aren’t just words—they’re psychological triggers. When something is in short supply, we automatically perceive it as more valuable.

We’ve all felt it: that panic when we think we might miss out. That feeling that if we don’t act fast, we’ll lose the chance to snag a deal. It’s scarcity, and it works. Hard. Scarcity makes us move faster, think less, and buy more. And whether we need that product or not? Doesn’t matter. We feel like we can’t afford to miss out.

2. FOMO—Fear of Missing Out

This is a big one. Black Friday is about FOMO in its purest form. Retailers sell the idea that everyone else is grabbing these deals, and if we don’t get in on it, we’ll miss something important. The fear of being left behind? It’s a powerful motivator.

There’s nothing more tempting than feeling like you’re missing out on something the crowd is all about. And retailers use that to their advantage—creating that social pressure to join in. They don’t just sell you a product; they sell you the experience of being a part of something bigger. The crowd is all in, so why shouldn’t you be?

3. Social Proof: The Crowd’s Influence

Humans are social creatures. We look around, we see what others are doing, and we follow. This is the bandwagon effect, and it’s one of the most powerful psychological triggers retailers use. When something is labeled as “best-selling,” “popular,” or “limited edition,” we immediately think, “If everyone else is buying it, there must be a reason.”

The more people that buy something, the more we assume it’s worth buying ourselves. It doesn’t matter if it’s actually useful or if it’s something we even wanted in the first place. What matters is that everyone else has it, so it must be good. Social proof drives us to buy things we didn’t need, didn’t want, and won’t use. But hey, it was trending, right?

4. Discounts Make Us Feel Smart

Let’s be honest: we love a good deal. No shame in that. But here’s the thing: it’s not just about saving money—it’s about feeling like we’re getting a win. When we see “50% off” or “Buy one, get one free,” our brain gets a little high on the idea of outsmarting the system.

Discounts give us the emotional payoff of feeling like we’re winning, even if that “win” is just getting a product for slightly less than we would’ve paid. It’s not about the price tag—it’s about the satisfaction of feeling like we’ve scored a deal, even if we didn’t really need what we’re buying in the first place.

5. Loss Aversion: We Hate Losing

It’s not just about gaining something. Humans are wired to avoid losing more than they want to gain. Retailers use this to their advantage by playing into our fear of missing out. “Only 5 left!” “Sale ends in 2 hours!” We feel like we’re losing something valuable if we don’t act fast. And that’s a game changer.

Our brains are hardwired to avoid loss more intensely than to seek gain. It’s why we’re more likely to act fast when we feel like we’re about to lose something. Whether it’s an item we don’t need or an opportunity we don’t want to miss, loss aversion pushes us to buy without fully thinking it through.

6. Anchoring: The Power of Price Comparison

Have you ever seen a “discounted” product that was marked down from an inflated price? That’s anchoring—another trick retailers use to make us feel like we’re getting a better deal. When we see an item marked down from $200 to $50, we don’t just see a $50 item. We see a $200 item on sale for $50.

This comparison tricks our brains into feeling like we’re getting way more value than we actually are. The original price becomes an anchor—our point of reference—and even though we might not need the product, we convince ourselves it’s worth the purchase because we’re saving so much. It’s not about the item; it’s about the perceived deal.

7. The Emotional Pull of Buying

Let’s not kid ourselves. Shopping is an emotional experience. And Black Friday? It’s the ultimate emotional rollercoaster. Retailers don’t just sell you a product; they sell you the feeling of getting the product. The thrill of the chase. The rush of scoring a deal. The emotional satisfaction of feeling like you’ve won.

And that’s why buying patterns on Black Friday are so irrational. We don’t always buy because we need something. We buy because we feel like we need it. Whether it’s the buzz of excitement, the need to fit in, or the satisfaction of feeling like we’ve scored a deal, it’s the emotions that drive the buying decision more than the logic behind it.

8. Creating a Sense of Urgency

This one’s a classic. If Black Friday sales ran all year long, would anyone bother shopping for them? Probably not. The time limit is a huge motivator. It forces us to make decisions faster, often before we’ve had the time to fully think them through.

“Shop now or miss out” is one of the oldest tricks in the book. Creating urgency accelerates our decision-making, making us feel like we must act right now, or we’ll miss the opportunity forever. It’s a psychological pressure tactic, and it works. People buy because they feel like they have no choice but to act before the clock runs out.

Why It All Works

Black Friday is a billion-dollar machine because it taps into how we, as humans, naturally think and behave. Scarcity, FOMO, social proof, emotional buying triggers—all of these psychological elements are hardwired into us. Retailers know this, and they exploit it to create the perfect storm of urgency and desire.

So, next time you find yourself filling up your cart and wondering why you’re buying things you don’t need, remember this: it’s not just about the products. It’s about the psychology of why you buy. Understanding the behavior behind the sale can give you a little more control over your spending—and help you see that Black Friday isn’t about deals at all. It’s about selling you on the idea that you need something more than you really do.

Jo Knight Dutkewich is a former corporate senior leader and consultant to some of the world's best brands. She helps solopreneurs break up with procrastination, perfectionism, overthinking & self-doubt to achieve consistent $10k months.

She lives on Vancouver Island in the Pacific Northwest with her husband, 3 sons, animal menagerie, and judgmental cat..