Just when e-commerce firms ready themselves for their busiest stretch of the year, the GST rationalisation has kicked in, promising visible savings for consumers and an extra push for platforms already primed for record demand. For Amazon, Flipkart, Meesho, and even quick-commerce players like Instamart, the move could not have come at a better time.
With the festive season shaping up as the strongest in years, the industry finds itself perfectly positioned to cash in. Major players have synced their flagship sales with the new tax slabs, betting that customers will loosen their purse strings when they see the savings directly reflected on price tags. Flipkart’s Big Billion Days and Amazon’s Great Indian Festival go live this week, while Meesho has already kicked off its Mega Blockbuster Sale. Instamart, Swiggy’s quick-commerce arm, was first with its Quick India Movement sale over the weekend.
The alignment is deliberate. Platforms have been preparing for weeks, updating systems with revised GST codes, reworking seller interfaces, and collaborating with brands to tweak MRPs. The goal is to make sure every rupee of tax benefit is passed on without logistical hiccups. Inventory flows have been recalibrated, compliance checks tightened, and sellers nudged to stay ahead of demand surges.
Logistics and visibility drive sales
Behind the scenes, logistics networks are bulking up. Amazon has expanded dedicated B2B fulfilment capacity threefold in Mumbai, Delhi, and Bengaluru, enabling up to 50% faster deliveries for its sellers. The company is also investing heavily in Amazon Now, its q-commerce vertical, with plans to triple its micro-fulfilment centres by year-end.
Flipkart is betting on its own q-commerce service, Minutes, to carry the festive load. Covering 19 cities and 3,000 pin codes, Flipkart Minutes is aiming to be the festive season’s go-to in tier 2+ markets such as Ambala, Guwahati, Jaipur, Lucknow, Kanpur, and Patna. “The Big Billion Days sale on Flipkart Minutes will go live with an unmatched festive assortment, operational 24 hours across cities for the entire duration of the event,” the company said in a statement.
If logistics is the backbone, visibility is the hook. Myntra has launched a GST Benefit Included tag on select products, ranging from cookware to apparel, to nudge shoppers. For festive shoppers who weigh every discount, this added clarity could be a decisive factor.
Brands are equally alive to the moment. “Giants have already started stocking up with new MRPs and are absorbing the cost differences to avoid stock-outs or losing customers due to supply chain constraints and the coinciding festival season,” said Pradyumnā Nag, founder and CEO of Prequate Advisory. Unlike quick commerce firms, which typically hold only a few days of inventory, e-commerce giants plan weeks in advance, giving them an edge in syncing tax benefits with festive stocking.
Industry analysts are already bullish. Redseer projects that in the 30-35 days leading up to Diwali, e-commerce sales will cross Rs 1.15 lakh crore in gross merchandise value, growing 20-25% year-on-year. That’s nearly double last year’s pace and potentially the best in the last five years. The timing of GST cuts is expected to trigger a dual demand wave, first during the immediate festive rush and again later in the year for high-ticket items like appliances.
Quick commerce emerges as festive surprise
Quick commerce, once thought of as a grocery-first play, is emerging as the surprise challenger. Instamart’s sale drew record traction, with traffic spiking 5x in the first hour. Earbuds, gas stoves, yoga mats, and bedsheets were among the fastest movers. Tier 2 towns stole the spotlight – Bathinda clocked 18x growth, Ludhiana 15x. iPhone 17 topped search charts, while bedsheets dominated purchases across 124 cities. “For phones, Instamart saw nearly 20x growth in orders within the first two hours of the sale. In the electronics category, earbuds witnessed a 30x surge in just two hours of launch,” the company said.
This shift is no accident. As Nag noted, “There is a general perception that q-commerce will double or triple its market share during the festive season”.
Brands are allocating more resources to these platforms than ever before, anticipating 2-3x sales growth compared to prior years. Categories set to gain the most from the confluence of GST cuts and q-commerce expansion include consumer electronics, personal care, fashion, and FMCG.
For online marketplaces, the festive season is always their make-or-break quarter, but this year, the GST cut has ensured that the party starts earlier, lasts longer, and promises to be richer than anything seen in recent times.