E-commerce order volumes up 37% this festival season: Unicommerce

E-commerce order volumes grew handsomely this festive season, increasing by approximately 37 per cent during the festive season sale of 2023 as compared to the festive sale period in 2022, according to the analysis of orders processed through Unicommerce, the online retail enablement tech platform.

"The festive season determines the growing scale of e-commerce in India,” said Kapil Makhija, chief executive officer, Unicommerce. “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.”

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 success of the festive season sales in parts may be attributed to attracting discounts on the online marketplaces and robust advertising campaigns. This has helped marketplaces record an impressive year-on-year (YoY) order volume growth of 39 per cent. Brand websites, on the other hand, also reported a strong 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.

The fashion and accessories segment along with beauty and personal care, emerged as the two most prominent categories in terms of 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. These 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. Haryana ranked at the third position, Uttar Pradesh at the fourth, and Meghalaya in the fifth spot.

Another striking trend observed during the festive season sale was the remarkable rise of prepaid orders this year, increasing by over 45 per cent as compared to 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.