E-commerce firms clock $3.1 bn in sales in early days of festival season offers2 min read . Updated: 21 Oct 2020, 05:33 PM IST
- For Amazon, 91% of its new customer base came from Tier 2 cities and beyond while Flipkart saw almost 65% of its new customers from smaller towns during the first few days of the festival season sales
BENGALURU: E-commerce firms Flipkart, Amazon, Myntra, and Snapdeal together sold goods worth $3.1 billion, or about ₹22,000 crore, in the first 4.5 days of the first festival season sale event which kicked off last week, according to management consultancy Redseer.
Sales crossed the gross merchandise value clocked in the corresponding period last year which stood at $2.7 billion.
The growth this year can be attributed to pent-up demand who have not really shopped over the past few months of the pandemic and lockdowns.
Apart from this, revenge-buying behaviour, e-commerce firms focussing on affordability through credit offerings, and newer customers coming from tier 2 and 3 geographies also bumped up sales.
Mint had reported earlier this week that metro-customers moving back to their hometowns was one of the key reasons why e-commerce firms saw heightened demand from Tier 2 and 3 geographies this year.
Snapdeal which ended its Diwali sale on 20 October said that nearly 70% of the orders were received by sellers located beyond the top 5 metropolitan areas of the country. Also, more than 90% of Snapdeal’s orders were placed from non-metro cities.
For Amazon, 91% of its new customer base came from Tier 2 cities and beyond while Flipkart saw almost 65% of its new customers from smaller towns during the first few days of the festival season sales.
Industry analyst Redseer had forecast that total GMV of products sold on e-commerce platforms will hit $4 billion during the first sale event in 2020, 77% of which was achieved during 15-19 October.
With Flipkart planning other smaller sale events in the coming weeks and Amazon continuing its month-long ‘Great Indian Festival’ sale, Redseer believes that e-commerce firms might top $4 billion in GMV sales this year.
Flipkart’s ‘Big Billion Days’ sale ends on 21 October.
“The first few days of the sale have been fairly aggressive. We estimate that online commerce will be 10% of overall retail in the short term, post the festive season. Smartphones have been a pleasant surprise, with its share expected to cross 45% of overall online GMV. Indicative data shows that electronics has also done well and players are running heavy offers on grocery category, to induce online ordering behavior," said Mrigank Gutgutia, director, ecommerce, Redseer Consulting.
Industry analysts now claim that long-tail electronics and home appliances will contribute to 25% of overall GMV, according to early estimates.
Gutgutia added that online sales have been a breather for offline retailers who have been struggling to overcome the covid-impact, with e-commerce being a ‘mainstay’ for brands.