Before its release, "Merry Xmas Everybody" received about half a million advance orders. 350,000 copies were bought upon its release. It became the third song by Slade to enter the UK Singles Chart at number one in its first eligible week on 15 December 1973, the sixth number one of their career, and the fastest selling single in the UK. Polydor, Slade's record label, were forced to use their French pressing plant to keep up with the demand, and the song eventually went on to sell over one million copies, becoming the Christmas number one of 1973, beating another Christmas-themed song, "I Wish It Could Be Christmas Everyday" by Wizzard. "Merry Xmas Everybody" remained number one until mid-January, and stayed in the Top 50 for nine weeks. That it remained in the charts after Christmas caused confusion for Holder, who wondered why people continued to buy it.