E-commerce sales in India to hit US$12 bn this festive season

E-commerce companies in India are expected to ship merchandise worth US$ 12 billion this festive season, a 23% increase from last year’s US$ 9.7 billion, according to Datum Intelligence. Quick commerce is projected to contribute $1 billion in gross merchandise value. Platforms like Blinkit, Swiggy Instamart, and Zepto are preparing for a busy season, cutting into sales from both modern trade and traditional Kirana stores.

Image Source: Pixabay

E-commerce companies and online sellers in India are set to ship merchandise worth US$ 12 billion this festive season, marking a 23% increase compared to US$ 9.7 billion last year, as per data from market research firm Datum Intelligence. Quick commerce is expected to account for US$ 1 billion of the gross merchandise value (GMV), which is the total value of goods sold on ecommerce platforms, excluding discounts and returns.

As ecommerce platforms, sellers, and major brands gear up for the festive season, the period leading up to Diwali is anticipated to generate significant revenue. This time frame, lasting about two months, typically brings a large portion of annual sales for both ecommerce firms and traditional retailers.

This year, quick-commerce platforms such as Blinkit, Swiggy Instamart, Zepto, and BigBasket’s BB Now are gearing up for a busy Diwali season, aiming to capture a larger share of the market. Satish Meena, an advisor at Datum Intelligence, noted that quick commerce is a key trend this year. He added, “Quick commerce is something which stands out this year. It’s not that there will be a lot of non-grocery, non-BPC (beauty and personal care) purchases. But in this category, they will be the dominant player.”

Meena further explained that quick commerce would not only compete with the marketplace of modern trade but would also “cut sales from the kirana stores”, indicating a shift in consumer buying behavior towards more immediate delivery options.