Ecommerce platforms, which outperformed other companies during the pandemic-driven lockdown, are looking forward to the festival season in India with extra hope as they are expected to double their sales in the next two months alone.
“Holiday season sales are expected to nearly double in the next two months alone and reach $ 7 billion in gross merchandise value (GMV), a sharp increase from $ 3.8 billion in GMV sales in the same period last year. said a news report Mint, which the internet research firm RedSeer quoted.
In recent months, e-commerce outlets have shown good sales as more people choose to purchase online due to the fear of Covid-19. Ecommerce platforms have recently closed more sellers and increased their customer base and added more warehouses.
Hopes are heightened by the fact that two of the largest online players in India, Amazon and Flipkart, posted combined sales in the range of Rs 5,600 crore-Rs 6,000 crore during their Prime Day and Big Savings Days sale events in August.
Tier-2 cities in the picture
As has been the trend of late, ecommerce portals expect tier 2 cities to take charge of new demand.
More than half of the orders come from Tier-2 cities with 45 to 50 million users. This represents a 70% year-on-year increase in seasonal online shoppers, RedSeer said.
Driven in large part by a new user base now accessing the Internet and increased online spending from existing users, the online retail market is expected to reach $ 50 billion by next year.
New models of smartphones, work-from-home enablers and study-from-home have boosted sales so far, but during the holiday season, clothing and fashion sales are starting to kick in.
Most of the competition would be between Amazon, Flipkart and JioMart with their many supporting platforms.
Amazon and Flipkart have said they would help their sellers make a comeback in a difficult season due to the economic stoppage.
There are other platforms such as BigBasket, Grofers, furniture stores Urban Ladder and Pepperfry, hoping to do well as well.