India's Diwali e-commerce transaction volume reached US$9.2 billion!

India has been plagued by the epidemic for a long time. After experiencing a long period of difficult life, Indian residents finally let go of consumption during Diwali.

According to data released by research firm RedSeer, e-commerce companies posted a gross merchandise value of $9.2 billion this year, up 23% compared to 2020, with many new players joining the Diwali sales.

As festive season sale is a flagship event, many brands are also more active in engaging in discounts and promotions, said Nikhil Shah, EY India e-commerce and consumer internet partner.

Due to the pandemic, people have become accustomed to e-commerce channels as a source of purchase, and sales have been increasing over the past year and a half, with second- and third-tier cities accounting for the majority of sales.

After the month-long Great Indian Festival, Amazon said in a blog post that 79% of new customers came from India's tier-II and tier-III towns. In addition, Amazon added that half of Prime members who shopped during the festival were from tier-II and tier-III towns.

The demand for product categories also changed during the festive sales in 2021. According to a report by RedSeer, across all categories, mobile accounted for 41% of the e-commerce GMV during the entire festive season.

Moreover , the fashion category rebounded after a year of slow growth, accounting for 23% of the overall GMV. The fact that fashion and apparel are picking up again is a very positive trend.

As the number of shoppers and total sales increased, the number of sellers on e-commerce platforms also grew. Shiprocket, an e-commerce shipping and enablement platform , said the percentage of first-time sellers joining sales in third-tier cities increased by 213%.

Nearly 47,000 new sellers from tier-III cities joined the platform, compared to around 16,000 sellers in 2020, said Saahil Goel, CEO and co-founder of Shiprocket.

“The festive season brings strong growth opportunities for sellers and MSMEs, and improved revenues and livelihoods for Flipkart’s supply chain partners. In fact, Flipkart saw over 55% growth in new sellers during this festive season compared to 2020.

Indian Diwali e-commerce