E-commerce order volumes grew handsomely this festive season, increasing by approximately 37 per cent during the festive season sale of 2023 in comparison to festive sale period in 2022, according to an analysis of orders processed through Unicommerce. In addition to the substantial growth in order volumes, the Gross Merchandise Value (GMV) also saw an increase of 22 per cent during the same festive period.
The Unicommerce report added that the success of the festive season sale in parts may be attributed to attracting discounts on the online marketplaces and robust advertising campaigns. This has helped marketplaces record an year-on-year (YoY) order volume growth of 39 per cent. Brand websites, on the other hand, also reported a 23 per cent increase in e-commerce order volumes.
Interestingly, the GMV reported an inverse trend with brand websites recording a 29 per cent YoY GMV growth, while marketplaces recorded a 21 per cent YoY GMV growth. “This may signify that consumers are not only ordering more, but loyal customers are increasingly purchasing directly from their trusted brands, leading to a surge in average order values,” it said.
In terms of categories, the fashion and accessories segment along with beauty and personal care, emerged as the two most prominent segments for order volumes. These segments displayed consistent growth in both volume and GMV during the festive month. Categories like FMCG and home decor have emerged as strong e-commerce contenders which are now laying inroads for newer segments to flourish in the e-commerce ecosystem.
As per the orders processed through Unicommerce’s platforms, Rajasthan and Uttarakhand took the lead to become the top two states in terms of growth in order volumes, with Haryana at the third position, Uttar Pradesh at the fourth, and Meghalaya in the fifth spot.
Further, prepaid orders witnessed an increase of over 45 per cent during the festive season sale as compared to the last year. In contrast, Cash-on-Delivery (COD) orders grew by 20 per cent during the same period. “The surge in prepaid orders can be attributed to lucrative bank offers and convenient EMI options, making it an encouraging trend for the industry,” it said.
Speaking on the consumer response during the festive season, Kapil Makhija, CEO Unicommerce, said, “The festive season determines the growing scale of e-commerce in India. As industry sectors continue to embrace the country’s e-commerce ecosystem, shoppers from across India’s length and breadth are willingly opting for online shopping. We ensure that our technology is easily accessible and deployable for sellers considering the fundamental complexities of the Indian market.”