ETA: It looks like most of the prices have gone back up, but if it's anything like the past few years, there will be more good deals to come! Good luck!
I am letting you in on a huge secret of how I get great gifts for my kids throughout the year for amazing prices. This is usually the best toy sale of the year, at the beginning of December! I have gotten crazy, crazy deals for the last couple of years that are even better than Black Friday. Even if all your Christmas shopping for your kids is done, think of the angel trees, toys for tots, birthdays, cousins, toys for the "gift closet," etc.
My favorite way to watch the deals is to register with Fishing for Deals (free and no spam, nicest ladies in the world), and then go to the Catch of the Day forum and just watch the Official Amazon threads. They will go crazy for the next week or two and these women will steer you to the best deals. I also like to check the topselling toys at Amazon~they update it hourly and you can see the great deals that are most popular.
A couple of other pointers:
*Most of the toys qualify for the free shipping with a $25+ purchase, but if they offer you a free month of Amazon prime when you log into your Amazon account, jump on it~you won't regret it. You can use it all this month and place little orders with no minimum (most things qualify) with the 2 day free shipping.
*prices fluctuate! If you think it is an amazing price, jump on it. Amazon doesn't do price adjustments anymore, but if it does go lower, you can just refuse the package at the door when UPS delivers it and it will just go back to Amazon and they will credit you back.
*be prepared to be best friends with your UPS delivery person and start thinking of a present for him/her. :) Amazon's packaging is usually ridiculous as well~they put a single toy in a huge box and ship them one at a time (from different warehouses)
*figure out your budget right (with your husband, preferably!!) now for Christmas, birthdays, etc. so you don't go too hog wild~it's very easy to do. If you can't pay it off next month, don't get sucked in. You'll regret it. They are great deals, but not when you add interest to them.
Some deals already tonight: (they may be gone by the time you read this!)
Butterscotch Pony: 79.99 to get this price, see the $100 back promotion they are talking about at Fishing for Deals
9.99 and under toys at Amazon (look for the most percentage off for best deals)
Hasbro Rose Petal Cottage: $29.99
Transformers Set: 5.99
Melissa & Doug Band in a Box: $11.39
Baby Alive Learns to Potty: $18.99
Star Wars R2D2 robot ($100 off!): 69.99
Hannah Montana singing doll: $9.99
Leapfrog Magnetic word builder: $13.99
Okay, I can't post anymore~I'm off to shop!! Remember, this will most likely continue over the next few weeks and it's very, very addicting. Good luck! I would love to hear what you get!