India’s e-commerce platforms recorded a staggering Rs 1 trillion (about $11.9 billion) in sales during this year’s festive season, with a strong demand from non-metro cities and a surge in premium product purchases. This year’s sales saw a more than 20% increase compared to 2022, emphasizing the expanding influence of tier II and III city consumers.
Non-metro demand boosts E-commerce festive sales
The festive season sales highlight the growing buying power of consumers in non-metro cities. Over 85% of Amazon’s customers were from these regions, according to reports, marking a pivotal shift in India’s e-commerce landscape. Datum Intelligence estimated that this season’s total sales rose by 23% compared to last year’s Rs 81,000 crore, with strong demand for smartphones, home appliances, and fashion items, particularly in the luxury segment.
Flipkart big billion days and amazon great Indian festival drive initial sales surge
Flagship events spark early festive sales boom
The initial week of the season was particularly active, thanks to events like Flipkart’s Big Billion Days and Amazon’s Great Indian Festival, which started on September 26. During this period alone, sales reached Rs 55,000 crore ($6.5 billion), representing more than half of the festive season’s total sales volume. High-value items were in demand, and sellers on Flipkart reported year-on-year sales growth of up to 50%.
Premium products and smartphones lead E-commerce sales
Smartphones emerged as the most popular category, accounting for about 65% of online purchases. Both Flipkart and Amazon saw high demand for premium smartphones, especially in non-metro regions, with a significant preference for high-end brands. Amazon reported a 30% increase in sales of large appliances and a remarkable surge in luxury fashion items—some categories even saw a 400% rise, reflecting a trend toward quality purchases among consumers.
UPI transactions surge alongside E-commerce growth
The booming e-commerce sales were mirrored by a substantial rise in Unified Payments Interface (UPI) transactions, which reached 16.58 billion in October, marking a 45% year-on-year increase. The National Payments Corporation of India reported a 34% rise in total transaction value compared to last year, highlighting the expansive economic impact of India’s e-commerce boom during the festive season.
