Ecommerce platforms, including social commerce and grocery shopping, collected around $ 2.7 billion in sales in the first four days of the Holiday Sale and are on track to hit the $ 4.8 billion Gross Merchandise Value mark, consulting firm RedSeer said on Saturday.
RedSeer Consulting predicted last month that online platforms would see 30% year-on-year growth in gross GMV to $ 4.8 billion in the first week of the festive sale. These platforms should potentially exceed $ 9 billion gross GMV throughout the holiday season this year compared to $ 7.4 billion last year, a growth of 23%.
Gross GMV refers to the total value of goods sold on the platform before subtracting the cancellation or return.
“… in the first week (October 2-5) of the 2021 festive sale, e-commerce platforms, including social commerce and grocery shopping, in total, the platforms generated around $ 2.7 billion in sales and are on track to hit $ 4.8 billion in gross merchandise value (GMV) … “RedSeer said in its” Mid-Festive Check In “report.
He added that the first four days of CY2020 holiday week accounted for 63% of overall holiday week sales compared to this year when they accounted for about 57% of forecast sales.
Smartphones contributed around 50% of GMV in the first four days of sales.
“With festive sales running longer than last year (nine days versus seven days) – we are seeing customer demand more spread over the period than concentrated in the first half of the holiday week. At that time, we have seen sales of around $ 2.7 billion on e-commerce platforms and we expect about an additional $ 2.1 billion over the next five days, ”a said Ujjwal Chaudhry, associate partner of Redseer.
The report estimates that more than 75 percent of customers plan to buy the equivalent or more than last year in categories such as mobiles, major appliances, beauty and fashion.
Ecommerce businesses see a large portion of their annual revenue coming in during festive sales and they are making significant investments up front to increase capacity and add functionality to be able to handle spike in orders, while ensuring a smooth experience for buyers and sellers.
Companies across the spectrum, including Flipkart, Amazon, Snapdeal and Myntra have lined up new launches and offers to woo shoppers this holiday season. The players organize several sales events which are timed around Dussehra and Diwali.