Festive Season Boost: E-commerce Sales Reach $6.5 Billion in Just One Week, Up 26%

Online marketplaces have experienced a significant boost in sales, totaling $6.5 billion during a week of festive promotions. This figure represents a 26% increase compared to the same period last year, demonstrating the growing popularity and reliance on e-commerce shopping during festive seasons.

Major Contributors to Sales

According to a report by The Economic Times, mobile phones, electronics, consumer durables, home goods, and general merchandise accounted for approximately 75% of total sales during this period. These categories continue to attract consumers looking for quality products and special deals.

Insights from E-commerce Consultancy

The consultancy firm Datum Intelligence highlighted that the week beginning September 26 was particularly crucial, contributing roughly 55% of the expected total e-commerce sales for the festive season. This shows that a large portion of festive shopping occurs early in the season, emphasizing the importance of timely promotions and offers from retailers.

Expected Gross Merchandise Value for the Season

Reports indicate that online retailers and brands are projected to achieve a gross merchandise value (GMV) of $12 billion during the ongoing festive season. This represents a 23% increase from last year’s GMV of about $9.7 billion. Such growth is a testament to the increasing engagement of consumers with online shopping platforms.

Understanding Gross Merchandise Value (GMV)

In the e-commerce sector, GMV refers to the total sales generated by an online marketplace over a specific period. The increase in GMV reflects both the growing number of online shoppers and their willingness to spend more, particularly on premium products.

Higher Demand from Consumers

Industry experts have reported higher-than-expected demand for various products, particularly among consumers from smaller towns and cities. Many shoppers are opting for items with higher average selling prices (ASP) and are increasingly choosing EMI (Equated Monthly Installment) payment options, making it easier for them to purchase expensive items.

Festive Sales Initiatives from Major E-commerce Players

E-commerce giants Flipkart and Amazon India launched their annual festive sales—Big Billion Days and Great Indian Festival, respectively—on September 27. These events included early access for members of their loyalty programs, Amazon Prime and Flipkart Plus, starting from September 26.

Amazon’s Performance in Consumer Electronics

Amazon India reported strong customer demand across the consumer electronics category during this festive season. The premium segment (products priced above ₹30,000) experienced the highest year-on-year growth of 30%. Popular products contributing to this growth included smartphones like the iPhone 13, OnePlus, and Samsung S23 Ultra.

Significant Demand Beyond Metro Areas

Interestingly, the demand for premium products is not confined to metro areas; Tier-II and smaller cities account for 75% of all orders. Consumers are also upgrading to larger TVs, with 50% of orders consisting of large-screen models. In the premium segment, tablets represented 60% of sales.

Increased Demand for Large Appliances

Larger appliances, such as washing machines, refrigerators, and air conditioners, also saw a substantial increase in demand, with a 1.7x spike from customers using exchange offers and a 1.6x spike from those opting for no-cost EMIs. In response to this growing demand, Amazon has introduced a new service offering authorized personnel for installation, setup, and troubleshooting across 400+ cities, enhancing the overall customer experience.

Meesho’s Growth During the Festive Season

Meesho, another major player in the e-commerce landscape, launched its Meesho Mega Blockbuster Sale on the same day as the other festive sales. The platform reported a 40% year-over-year increase in orders, driven primarily by robust demand from Tier-II cities. Nearly 45% of Meesho’s shoppers are from Tier-IV locations and beyond, highlighting the shifting shopping patterns.

Flipkart’s Commitment to Faster Deliveries

Flipkart has expressed its commitment to providing faster delivery options across all locations. The company is expanding its same-day and next-day delivery services to meet customer expectations. While major metropolitan areas like New Delhi, Kolkata, Hyderabad, and Bengaluru continue to dominate sales, there is a noticeable demand from customers in Tier-II+ regions such as Medinipur, Hisar, Berhampore, Bankura, and Agartala.

Conclusion: A Strong Start to the Festive Season

Overall, the report indicates that around ₹50,000-₹55,000 crore worth of goods were sold during the first week of e-commerce festive sales. With the continued growth in online shopping and the increase in average order values, this festive season is shaping up to be one of the most successful for e-commerce platforms in India.