E-commerce continues robust growth trajectory in 2024 driven by smaller cities
Propelled by rising demand from smaller cities, India’s e-commerce sector continued its robust growth trajectory in 2024.
In the festival season of October to December 2024, the Indian e-commerce is projected to reach $12 billion in gross merchandise value (GMV), marking a 23 per cent increase from last year when the GMV was $9.7 billion in the same period in 2023.
According to a report by logistics firm Shiprocket, 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. Artificial intelligence-based shopping recommendations and social media influencers are shaping consumer behaviour this year, particularly in the fashion and beauty categories.
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As many as 84 per cent of consumers made purchases based on promotions or influencer suggestions, the report said. 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% of online festival orders are expected to originate from non-metro areas.
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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. Shiprocket said it facilitates $100 million in global e-commerce GMV, with more than 3,000 merchants engaged in exports
Last year, it 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.
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