Festive sales kick off with e-commerce businesses reporting higher demand from small towns

Bangalore: Ecommerce companies such as Flipkart, Amazon India and Snapdeal, which launched their annual flagship sales over the weekend, have reported increased demand from small towns this year.

Amazon and Flipkart both began previewing the sale event for Amazon Prime and Flipkart Plus members starting midnight Friday (October 2).

During Early Access, Flipkart said it saw nearly 45% of customer demand come from Tier 3 cities and beyond. Amazon India, on the other hand, reported a 21% increase in the number of sellers receiving an order from customers in Tier 2 and 3 cities.

Flipkart said it saw a 40% growth in sales during this year’s Early Access event compared to same-store sales a year ago. Amazon India said nearly 60% more sellers saw higher sales during this year’s Early Access event, compared to last year.

Myntra and Snapdeal, which also kicked off their festive sales on Sunday, October 3, saw a significant share of sales coming from level 2 and 3 geographies. For Myntra, 40% of day one orders came from small towns, a- he declared.

In an effort to reach discount buyers first, Amazon India and Flipkart have moved their sales dates forward from October 4 and October 7 to October 3, respectively, as competition between rivals intensifies.

“This year, The Big Billion Days (TBBD) sale began with optimistic participation from customers and sellers. E-commerce is clearly gaining more and more acceptance by the masses, and it is evident that user-friendly technical and financial constructs are contributing to its adoption, ”said Nandita Sinha, vice president – client and growth, Flipkart. “We will continue, in the years to come, to do what we do best: to offer products offering the best value for money and to introduce features and solutions that make our platform more accessible and affordable”, a- she added.

According to Filpkart, smartphones and electronics also continued to dominate the shopping cart this year. During the first day of the sale, Flipkart claimed that one in five customers chose to upgrade their smartphones, with TVs and laptops scoring the best sellers in the home appliances and electronics category. He added that he saw vendors in 124 new cities transact in this year’s The Big Billion Days sale, compared to last.

Amazon India said 16% more sellers received orders in this year’s “Great Indian Festival” sale, compared to last.

“Amazon Great Indian Festival 2021, our month-long festive celebrations got off to a good start […] During Prime Early Access on October 2, the number of local stores participating in the event more than doubled from last year. We also saw 16% more sellers receiving orders compared to last year. The first data from the first day indicates a good start in all categories for the month-long holiday season and we are excited about the momentum, ”said Manish Tiwary, vice president of Amazon India.

Snapdeal also kicked off its festive sale week on Sunday.

“The trends from the first day of our sale show that most orders come from Tier 3 cities, followed by Tier 2 and Metropolitan cities. So far, Menswear (Footwear & Apparel), Ethnic Womenswear, and Personal Care & Grooming are the most popular categories on Snapdeal. We have also seen an increase in sales of automotive-related products, ”said a spokesperson for Snapdeal responding to questions from Mint.

Ecommerce platforms are expected to generate over $ 9 billion in gross value of goods (GMV) over the holiday season, a 23% increase from $ 7.4 billion last year, according to estimates by management consulting firm RedSeer Consulting.

The expected gains are slower than the record 48% growth seen last year, when offline establishments saw sales plummet amid fears of covid and pandemic restrictions. In addition, e-commerce businesses are expected to reach $ 4.8 billion in the first week of festive sales alone, according to RedSeer estimates.

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