20 million customers to shop for $3 billion on e-com sites says RedSeer Consulting

Last Updated: Mon, Sep 10, 2018 18:16 hrs
Ecommerce

A report by RedSeer consulting says that the coming festive season is expected to have close to 20 million people shopping on various e-commerce platforms.

This huge visit will translate into sales of around $3 billion.

Flipkart and Amazon India, both big names in India's hot e-commerce market have had five day festivals on their websites. RedSeer estimates that some 13-24 million shoppers transacted during the five-day sale in 2017 while 10 million did so in 2016.

Festive sale with discounts and deals for customers have been viewed similar to cola wars- a war of sorts between India's two fiercest e-commerce competitors- Flipkart and Amazon India.

And this year, the battle is expected to be spicier considering investments and capital infusions. Flipkart is backing itself, thanks to an investment made by US retail giant Walmart (via a $16 billion deal signed earlier this year). Amazon India too has received funding through the year from the US parent across operations like marketplace and payments business.

Sale dates for 2018 are yet to be announced, but these are likely to be held in October.

According to RedSeer, the daily gross merchandise value (GMV) or the total value of merchandise sold through a given time is expected to soar to $527 million in 5 days for the e-com players.

The estimated GMV during the festive period is almost 9 times of what Amazon and Flipkart achieved during May-July 2018 period ($62 million). Last year, the GMV during the five day festive period of Amazon and Flipkart stood at $280-300 million.

The RedSeer report also says that the share of items like electronics and furniture during the sale could be higher this year due to "affordability" initiatives being undertaken by the e-commerce players.

While mobile phones are expected to continue to remain the bulk of the sales (52%), categories such as fashion are expected to be about 15%.

Like in offline retail, e-commerce companies see a major bump up in sales during Dussehra and Diwali. The September-November period typically generates a majority of the annual sales of these companies, who prepare months in advance for the sale event.

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