E-Commerce GMV Set To Surge 23% To $12 Billion In 2024 Festival Season: Report

“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, MD and CEO of Shiprocket

According to the report, the growth of e-commerce during the festival season is primarily driven by increased digital penetration in Tier-II and Tier-III cities

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Indian e-commerce is expected to reach $12 billion in gross merchandise value (GMV) during the festival season from October to December 2024, reflecting a 23 per cent increase from the previous year, according to a report by logistics firm Shiprocket. In the same period in 2023, GMV was $9.7 billion. 

This growth is fueled by rising consumer demand in sectors such as fashion, electronics, beauty, and personal care, along with a significant boost from quick commerce, which is projected to contribute $1 billion to GMV, states the report.

According to the report, the growth of e-commerce during the festival season is primarily driven by increased digital penetration in Tier-II and Tier-III cities. Enhanced internet accessibility, rising disposable incomes, and improved digital literacy outside of Tier-1 cities are contributing factors, with nearly 60 per cent of online festival orders expected to come from non-metro areas.

Artificial intelligence-driven shopping recommendations and social media influencers have significantly influenced consumer behaviour this year, particularly in the fashion and beauty sectors. 84 per cent of consumers reported purchasing based on promotions or suggestions from influencers.

Notably, around 55 per cent of festival season orders are from first-time shoppers. Weekend shoppers accounted for 27 per cent of total festival sales, with Sundays contributing about 13 per cent and Saturdays approximately 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 CEO of Shiprocket, reported Business Standard.

“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 added, referring to micro, small, and medium enterprises.

Shiprocket reported facilitating $100 million in global e-commerce gross merchandise value (GMV), with over 3,000 merchants participating in exports. During the festive period of 2023, the company processed more than 26.5 million orders, contributing to an annual total of 112.5 million orders. Additionally, Shiprocket experienced a 15 per cent increase in new sellers joining the platform during the 2023 festive season.