5 E-Commerce Trends that Drove Sales During the Festive Season

ecommerce trends during festive season
(Last Updated On: May 30, 2023)

Did you know that e-commerce businesses saw a 56% increase in overall order value during the festive month (source: Unicommerce survey)? As the economy officially entered a recession, one would think the buying capacity of people has reduced. That’s clearly not the case. Here are 5 e-commerce trends that ruled India during the festive season.

“As people are practising social distancing, the e-commerce industry is witnessing an important chapter with a surge in first-time online shoppers. This change will provide a significant boost to the sector in the long run,” said Kapil Makhija, CEO of Unicommerce.

5 eCommerce trends that drove sales in India during the festival season

Increase in first-time online shoppers

Post lockdown, ‘revenge buying’ or overindulging in online retail therapy became a new norm. As people could not go out to shop and saved up money during the lockdown, no expense was spared during the festive season.

With lesser options and a clampdown on favourite activities like travelling, customers splurged online. People purchased electronics, home gadgets – mainly work from home supplies.

Also read: How to attract customers to your online store/website for the first time 

Introduction of new categories

The Unicommerce report also showed the rise of new categories like personal care, beauty, and wellness products. People also spent more on low-cost products.

The personal care category saw a 176% jump in orders during the festive season. Other categories that continued to see an above 70% growth in sales were electronics, fashion, and jewellery.

Number of digital buyers in India – with forecasts up to 2020 – Source – Statista

Increase buying from tier II and tier III cities

With a third of India’s city population moving back to their hometowns after the lockdown, online purchases from tier II and tier III cities increased. The number of people returning to cities is also significantly lower now. This could mean e-commerce traffic from tier II and tier III cities could continue its trend.

Tier III cities contributed to a 31% growth in order volume when compared to last year.

Tier 2 and tier 3 cities contribute to 2/3rds of total online consumer demand as of 2020 – and this number is only expected to increase in the coming months. These tiers are becoming the fastest-growing region in terms of e-commerce sales, according to the report.

Shipping industry bouncing back

Fulfilling a large number of orders would not have been possible if not for the logistics and shipping industry getting an early clearance certificate to move across borders once again.

Logistics in India resumed operations right in time for the festive season with new rules and regulations. The industry went from nearly collapsing to taking in surplus orders during the festive month.

Small businesses went online #I❤️local

As consumers shifted online, so did businesses.

According to the Unicommerce report, over 78% of new buyers preferred buying from small businesses. Campaigns centred around ‘Handlooms’, ‘Vocal for Local’ and ‘Made in India’ were a huge hit. The collective aim was to encourage a shift in buyer behaviour and also push small businesses to shift to online platforms and boost sales.

Not all online platforms need advertisements

At Instamojo too, we collaborated with Platform for Artists during the festive season to host India’s first online flea market that featured 50 artist businesses. Of the 50, about 41 of them started their online art business during the lockdown.

About 30+ of these small businesses set up their online store with Instamojo. Take a look at some of their stores here.

While the eCommerce trends listed above make its way over to next year, one other thing is for certain; every business should have an online presence. Hear it from the eCommerce small business sellers themselves –


Here’s how you can use the eCommerce trends  to your benefit

  1. Sign up on the Instamojo platform
  2. Set up an online store (free/premium)
  3. Upload your products and services
  4. Spread the word, keep us posted

How does Instamojo help businesses go online? Take a peek at the video below –

Set up your own eCommerce store with Instamojo

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