The festive season of 2023 witnessed robust growth in e-commerce order volumes, soaring by approximately 37% compared to the festive sale period in 2022, as reported by Unicommerce, the online retail enablement tech platform.
Kapil Makhija, CEO of Unicommerce, highlighted the significance of the festive season in gauging the expanding scale of e-commerce in India. He stated, “The festive season determines the growing scale of e-commerce in India. As industry sectors continue to embrace the country’s e-commerce ecosystem, shoppers from across India’s length and breadth are willingly opting for online shopping.”
In addition to the substantial growth in order volumes, there was a notable 22% increase in gross merchandise value (GMV) during the festive period. The success of festive season sales can be attributed to enticing discounts on online marketplaces and robust advertising campaigns.
Marketplaces recorded an impressive year-on-year (YoY) order volume growth of 39%, while brand websites reported a strong 23% increase in e-commerce order volumes. Interestingly, the GMV exhibited an inverse trend, with brand websites experiencing a 29% YoY growth, and marketplaces recording a 21% YoY GMV growth. This suggests that consumers are not only ordering more, but loyal customers are increasingly making direct purchases from trusted brands, leading to a surge in average order values.
The fashion and accessories segment, along with beauty and personal care, emerged as the two most prominent categories in terms of order volumes, displaying consistent growth in both volume and GMV. Categories such as FMCG and home decor are also making strides as strong contenders in the e-commerce landscape, paving the way for newer segments to flourish.
According to Unicommerce’s platform data, Rajasthan and Uttarakhand took the lead as the top two states in terms of growth in order volumes, followed by Haryana, Uttar Pradesh, and Meghalaya.
A notable trend during the festive season sale was the remarkable rise of prepaid orders, increasing by over 45% compared to the previous year. In contrast, cash-on-delivery (COD) orders grew by 20% during the same period. The surge in prepaid orders is attributed to attractive bank offers and convenient EMI options, signaling a positive trend for the industry.
