E-commerce sales reached $6.5 billion in one week, up 26% during the holiday season
E-commerce giants Walmart-owned Flipkart and Amazon India kicked off their annual festive sales – Big Billion Days and Great Indian Festival respectively – on September 27. (Photo: Shutterstock)
Online marketplaces recorded sales totaling $6.5 billion during a week of festive promotions, reflecting a 26 percent increase on last year. Cell phones, electronics, consumer durables, household goods and general merchandise comprise about three-quarters of this total, according to a report by The Economic Times.
According to e-commerce consultancy Datum Intelligence, sales for the week beginning September 26 accounted for about 55 percent of expected total e-commerce sales for the holiday season, the report said.
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Reports indicate that online retailers and brands are expected to reach a gross merchandise value (GMV) of $12 billion this holiday season, marking a 23 percent increase from approximately $9.7 billion last year.
Higher than expected demand
In the e-commerce industry, GMV refers to the total revenue generated by an online marketplace. The report quoted industry experts as saying that online consumers, especially many from smaller towns and cities, have been purchasing items at higher average retail prices (ASP) and are increasingly opting for EMI payment options.
E-commerce giants Walmart-owned Flipkart and Amazon India kicked off their annual festive sales – Big Billion Days and Great Indian Festival respectively – on September 27, offering early access to members of their loyalty programs, Amazon Prime and Flipkart Plus. from September 26.
Meesho launched its Meesho Mega Blockbuster Sale on the same day and reported a 40 percent increase in orders year-on-year. This growth was mainly driven by strong demand from Tier-II cities, with nearly 45 percent of shoppers coming from Tier-IV locations and beyond, the report said.
Flipkart said it is committed to faster delivery options at all locations while expanding same-day and next-day delivery services. The report quotes a business executive as saying that while major metropolitan areas such as New Delhi, Kolkata, Hyderabad and Bengaluru continue to dominate, there is robust demand from customers in Tier-II+ regions such as Medinipur, Hisar, Berhampore, Bankura and Agartala . .
The report quoted Satish Meena, a consultant at Datum Intelligence, as saying that around Rs 50,000 to Rs 55,000 crore worth of goods were sold during the first week of the festive e-commerce sale.
First publication: October 11, 2024 | 4:23 pm IST