E-commerce GMV to increase 23% to $12 bn in 2024 festival season: Report

Growth led by digital penetration in India's Tier-II and Tier-III cities, according to Shiprocket

Indian e-commerce is projected to reach $12 billion in gross merchandise value (GMV) in the festival season of October to December 2024 to mark a 23 per cent increase from last year, according to a report by logistics firm Shiprocket.

GMV was $9.7 billion in the same period in 2023. Growth is driven by consumer demand in fashion, electronics, beauty, and personal care, along with a surge in quick commerce, which is expected to contribute $1 billion in GMV.

Festival season e-commerce growth is led by digital penetration in Tier-II and Tier-III cities, according to the report. Fueled by improved internet accessibility, rising disposable incomes and digital literacy beyond Tier-1 cities, almost 60 per cent of online festival orders are expected to originate from non-metro areas.

Artificial intelligence-based shopping recommendations and social media influencers are shaping consumer behaviour this year, particularly in the fashion and beauty categories. As many as 84 per cent of consumers made purchases based on promotions or influencer suggestions.

Around 55 per cent of festival season orders come from first-time shoppers. Weekend shoppers comprised 27 per cent of total festival sales, with Sunday accounting for around 13 per cent and Saturday making up about 14 per cent.

“As we enter the 2024 festive season, the momentum for e-commerce continues to build across Bharat, particularly in Tier-II and Tier-III cities,” said Saahil Goel, managing director and chief executive officer of Shiprocket.

“With the rise of quick commerce and the increasing global appetite for Indian products, we are excited to support MSMEs in tapping into this tremendous $12 billion opportunity. Our goal is to continue innovating and providing the tools necessary for businesses to scale and succeed both locally and internationally,” he said, referring to micro, small and medium enterprises.

Shiprocket said it facilitates $100 million in global e-commerce GMV, with more than 3,000 merchants engaged in exports.

In 2023, the company recorded over 26.5 million orders during the festive period, contributing to its full-year order volume of 112.5 million. In terms of customer acquisition, Shiprocket saw a 15 per cent increase in sellers joining the platform during the festive season of 2023.