E-commerce platforms generate $2.7 billion in the first four days of festive sales

• Follow

E-commerce platforms like social commerce and grocery have generated roughly $2.7 billion in the first four days of festive sales. The platforms are further expecting to reach the $4.8 billion gross GMV mark, according to a consulting firm RedSeer.

Last month, RedSeer Consulting predicted that during the first week of the festive season, online platforms will experience a 30% year-on-year increase in gross GMV of $4.8 billion. During the entire Christmas season this year, these platforms are estimated to generate over $9 billion gross GMV (Gross Merchandise Value), up from USD 7.4 billion last year – a 23% increase.

Gross GMV refers to the total value of goods sold on the platform prior to subtracting cancellation or return. During the first four days of sales, smartphones accounted for roughly half of all GMV. “With the seasonal sales continuing longer than previous year (9 days against 7 days) we’re witnessing customer demand spread out over the duration rather than being concentrated in the early half of the festive week. To that end, we’ve seen sales of almost $2.7 billion across e-commerce platforms, with another $2.1 billion expected in the next five days, according to Redseer associate partner Ujjwal Chaudhry.

According to the study, over 75% of buyers plan to purchase similar to or more than last year in categories such as mobile phones, major appliances, beauty, and fashion.

E-commerce companies see a major portion of their annual revenue come in during the holiday sales, so they invest heavily in advance to increase capacity and add features to accommodate the surge in orders while assuring a seamless experience for both customers and sellers.

Flipkart, Amazon, Snapdeal, and Myntra are among the companies that have planned new launches and discounts to attract buyers throughout the festive season. Players offer a number of sales activities during Dussehra and Diwali.