Festive Season: Shiprocket Projects $12 Bn Ecommerce Opportunity For MSMEs

Shiprocket, an ecommerce enablement platform, has released data insights projecting the Indian festive ecommerce market to reach USD 12 billion during the key months from October to December 2024. This represents a substantial 23 per cent increase compared to USD 9.7 billion in 2023. 

It stated that the growth is largely driven by consumer demand in categories like fashion, electronics, beauty, and personal care, along with a surge in quick commerce, which alone is expected to contribute USD 1 billion in GMV.

The company stated that about 84 per cent of consumers make purchases based on AI-driven recommendations. Notably, festive ecommerce growth in India is being fueled by the continued rise of digital penetration in tier-2 and tier-3 cities. Fueled by improved internet accessibility, rising disposable incomes, and enhanced digital literacy beyond tier-1 cities, approximately 60 per cent of online festive orders are expected to originate from non-metro areas.

Furthermore, AI-driven recommendations and social media influencers continue to shape consumer behaviour, particularly in the fashion and beauty categories, with 84 per cent of consumers making purchases based on promotions or influencer suggestions. 

Additionally, insights reveal that around 55 per cent of festive orders come from first-time shoppers. In contrast, weekend shoppers contribute significantly, accounting for approximately 27 per cent of total festival sales, with Sunday accounting for around 13 per cent and Saturday making up about 14 per cent.

Growing Export Opportunities For Indian Merchants
India’s ecommerce export market is presently valued at approximately $3-4 billion but is expected to surge to $200-300 billion by 2030, as MSMEs continue to tap into global markets and government initiatives, like DGFT, further enhance India’s export capabilities. Shiprocket’s data revealed an increasing global appetite for Indian goods during the festive season, particularly through platforms such as Amazon Global and Flipkart’s Global Stores. 

Ecommerce exports have seen consistent year-on-year growth, with cross-border sales growing by 15 to  20 per cent in 2023. MSMEs are seizing the opportunity to expand globally, with popular export categories including handicrafts, home décor, and fashion.

The Path Ahead
With the Indian government’s focus on boosting exports, particularly through ecommerce-driven channels, India is well on its way to achieving its goal of USD 200 billion in ecommerce exports by 2030. As infrastructure and digital ecosystems continue to evolve, the contribution of eCommerce to India’s total exports, currently 4 to 5 per cent, is expected to increase significantly, positioning India as a global leader in digital trade.

“As we enter the 2024 festive season, the momentum for ecommerce continues to build across Bharat, particularly in tier-2 and tier-3 cities. With the rise of quick commerce and the increasing global appetite for Indian products, we are excited to support MSMEs in tapping into this tremendous USD 12 billion opportunity," said Saahil Goel, Managing Director (MD) and Chief Executive Officer (CEO), Shiprocket.