E-commerce firms to clock Rs 51K cr sales this festive season

E-commerce companies are set to witness close to 85% year-on-year growth in festive season sales this year owing to the new wave of customers shopping online due to the Covid-19 pandemic.

Driven by the massive growth in shoppers, online sales during the festive months of Dasara and Diwali are likely to witness gross merchandise value (GMV) of $7 billion (over Rs 51,000 crore). During the same period last year, the sales stood at $3.8 billion. However, during the first sale of the upcoming season, online marketplaces like Amazon and Flipkart among others are set to rake in $4 billion (Rs 29,000 crore). This is a growth of 50% over $2.7 billion (Rs 19,828 crore according to the current rate) worth of sales witnessed last year, according to data available with RedSeer, an internet research firm.

Amazon and Flipkart usually conduct their festive sales campaigns ahead of the Dasara and Diwali in three phases. “Consumers now more than ever prefer to shop in a manner that is convenient, safe, and hygienic and the e-commerce space meets these requirements,” RedSeer said.

With consumers apprehensive about visiting malls and retail outlets, online sales will be the preferred mode for shopping this festive season. The Jio effect also may play a moderately strong role in growing sales in smaller cities, especially if strong integration with fashion/electronics materialises, the research firm said.

During the upcoming festive season sales, an estimated 4.5-5 crore customers are expected to shop online, a growth of 70% year-on-year. Of this, 30-35% of customers are from metro cities, 20-25% from Tier-1 cities, and the rest from Tier-2+ cities.

Meanwhile, to ensure last-mile delivery, Amazon and Flipkart have announced plans to hire 70,000 workers each. Flipkart will onboard more than 50,000 Kirana, which will generate thousands of jobs, the company said.

“We will continue to create thousands of additional opportunities,” Amazon said.