India's e-commerce sector has concluded another successful festive season, with online orders surging by 24% and Gross Merchandise Value (GMV) climbing by 23% compared to the previous year. This growth underscores the increasing reliance on e-commerce platforms for festive shopping, driven by demand from smaller towns and the rapid expansion of quick commerce.
A standout trend this year is the remarkable growth of quick commerce platforms, which witnessed a 120% year-on-year jump in order volumes. This surge indicates a significant shift in consumer behavior, with shoppers increasingly valuing convenience and speed during the festive season. Several players, including Zepto, Blinkit, Swiggy Instamart, BigBasket's BB Now, Flipkart Minutes, Dunzo Daily, and AmazonFresh, have intensified competition in the quick commerce space.
While quick commerce experienced the most rapid growth, brand websites also saw a substantial 33% rise in order volumes. Marketplaces continue to be the dominant channel, accounting for 38% of total purchases; however, their order volume growth was more modest at 8%.
Regionally, Tier II cities led the charge with a 28% year-on-year increase in orders, followed by Tier I cities and metros at 24%, and Tier III towns at 23%. This demonstrates the expanding digital adoption and purchasing power in smaller towns, with Tier II and III cities collectively contributing approximately 55% of total orders.
Several factors contributed to this e-commerce boom. Enhanced supply chain readiness, smarter demand forecasting, and accelerated last-mile delivery ensured seamless and timely fulfillment, even amidst peak festive demand. Logistics platforms like Shipway reported a 15% reduction in average shipping times compared to the previous year.
Top-performing categories included FMCG (driven by healthy food products), home decor and furniture, beauty and wellness, and health and pharma. Specifically, Amazon saw a sixfold surge in furniture sales and a 500% increase in festive decor. Myntra experienced strong demand for Indian wear, kidswear, and other fashion items, acquiring two million new customers during the festive period.
The rise in online shopping has also impacted payment preferences. Prepaid orders grew by 26%, signaling stronger trust in digital transactions. Cash-on-Delivery (COD) orders also saw growth, climbing 22% in volume and 35% in GMV, indicating a shift toward higher-value COD purchases and increased consumer confidence in e-commerce platforms.
Moreover, some platforms witnessed a surge in demand for gold and silver coins through quick commerce channels. One platform reported a tenfold increase in sales of these items compared to the previous year, expecting to surpass Rs 25 crore. Amazon also noted that orders of energy-efficient appliances rose 50%, fitness equipment by 20%, and gold jewelry sales nearly doubled, with premium fashion items also experiencing remarkable growth.
The e-commerce sector's strong performance during the festive season reflects the increasing digital engagement and spending power across India. The growth of quick commerce, coupled with efficient supply chains and evolving consumer preferences, has created a dynamic landscape for online retail.
