E-commerce to see a 23% rise in festive sales year-on-year

Bengaluru: Amidst much speculation and projections about the festive season turnout, yet another set of data released on the subject - this time by e-commerce enablement platform Shiprocket on Thursday, estimated that this season will see e-commerce round up a $12 billion market between October and December.

This would effectively translate into a 23 per cent increase from the same season in 2023, which saw a sales of $9.7 billion.

A remarkable data point is that quick commerce is expected to contribute $1 billion in terms of gross merchandise value (GMV). The sales will largely be driven by demand for fashion, electronics, beauty and personal care products.

As has been projected by others, digital penetration in Tier-II and Tier-III cities is fuelling the e-commerce growth, with approximately 60 per cent of the online festive orders coming in from these markets.

AI-driven recommendations and social media influencers continue to shape consumer behaviour, particularly in the fashion and beauty categories, with 84 per cent of consumers making purchases based on promotions or influencer suggestions.

India’s e-commerce export market is presently valued at approximately $3-4 billion but is expected to surge to $200-300 billion by 2030, as micro, small and medium enterprises (MSMEs) continue to tap into global markets.

The data also reveals an increasing global appetite for Indian goods during the festive season, particularly through platforms such as Amazon Global and Flipkart’s Global Stores. E-commerce exports have seen consistent year-on-year growth, with cross-border sales growing by 15-20 per cent in 2023. The contribution of e-commerce to India’s total exports is currently 4-5 per cent.