AI drives 84% of Consumer Purchases in India’s festive eCommerce surge: Report

Shiprocket, India’s eCommerce enablement platform, has released data forecasting a substantial growth in India’s festive eCommerce market, projecting sales to reach USD 12 billion between October and December 2024. This represents a significant 23% increase compared to USD 9.7 billion in 2023. The report attributes the growth to rising consumer demand in sectors such as fashion, electronics, beauty, and personal care, as well as the increasing role of quick commerce, which is expected to contribute USD 1 billion in gross merchandise value (GMV).

One of the standout trends highlighted in the report is the growing influence of AI-driven recommendations on consumer behaviour. According to the data, 84% of consumers make purchases based on AI-powered suggestions, particularly in categories like fashion and beauty. This trend is expected to play a critical role in shaping shopping habits during the festive season. Social media influencers also continue to impact buying decisions, with their promotions pushing many consumers towards specific products.

Shiprocket’s report further notes that approximately 60% of festive eCommerce orders are likely to come from Tier-2 and Tier-3 cities. With improved internet connectivity, rising disposable incomes, and enhanced digital literacy, non-metro regions are driving the country’s digital commerce revolution. This shift reflects the increasing accessibility and adoption of online shopping beyond India’s metropolitan areas.

The report also highlights key consumer behaviour insights, noting that around 55% of festive orders are placed by first-time online shoppers. Weekend shopping is another significant factor, with Sundays accounting for 13% of total festival sales and Saturdays contributing 14%.

In addition to its domestic projections, Shiprocket also sees significant growth in India’s eCommerce export market. Currently valued at USD 3–4 billion, this sector is projected to grow to USD 200–300 billion by 2030, driven by increased participation from Indian MSMEs. Platforms like Amazon Global and Flipkart’s Global Stores have played a crucial role in facilitating cross-border sales, particularly in categories such as handicrafts, home décor, and fashion. Shiprocket, which currently supports USD 100 million in global GMV, is actively enabling over 3,000 merchants to expand their footprint globally.

To meet the growing demand during the festive season, Shiprocket has introduced solutions like "Shiprocket Quick," a hyperlocal delivery option that helps offline merchants offer faster delivery services. The platform aims to continue supporting Indian MSMEs by offering them the tools needed to succeed in the competitive eCommerce landscape.