Sunday, November 24

Indian eCommerce platforms reported USD 8.3 bn GMV during festive Sales

New Delhi, 28th Nov 2020: India’s e-commerce festive sale season from October 15-November 15 this year delivered USD 8.3 billion (about Rs 58,000 crore) worth of gross sales for brands and sellers, up 65 percent from USD 5 billion (Rs 35,000 crore) last year, research firm RedSeer said on Friday.

This was also higher than the pre-festive forecast of USD 7 billion, RedSeer said in its report titled ‘The Festival of Firsts’.

About USD 3.2 billion (Rs 22,000 crore) worth of gross sales was registered in September this year, which zoomed to USD 8.3 billion in the festive period, the report said.

Of the USD 8.3 billion, USD 4.2 billion (Rs 29,000 crore) was logged in the first event, USD 1.2 billion (Rs 8,700 crore) in the second event and USD 1.4 billion (Rs 9,700 crore) and USD 1.5 billion (Rs 10,300 crore) in other events by e-commerce companies, including Amazon and Walmart owned Flipkart.

Festive season sees players holding multiple sale events, timed around Dussehra and Diwali.

The report said Flipkart group (including Myntra) and Amazon accounted for more than 88 percent of the entire gross merchandise value (GMV) for the festive month.

Between the two players, Flipkart accounted for a larger share (66 per cent), it added.

“The overall growth story has been very bullish this festive season. We had forecasted USD 7 billion of sales but the actual figures surpassed our expectations fairly comfortably, showing how comfortable consumers have become with shopping online even in this pandemic hit year,” RedSeer Director Mrigank Gutgutia said.

He added that one clear lesson from this festive season is that e-commerce has become more mainstream than ever.

“And it has proven that with the right assortment at the right prices which is delivered quickly in the safety of customer’s homes, the value proposition of e-commerce is very powerful,” he said.

Gutgutia emphasised that it is imperative for brands and sellers to shift their focus to online quickly and enable a seamless online experience for the customer in order to thrive in a post COVID-19 world.

The report noted that 40 million shoppers came from tier II and beyond cities.