Table of Contents
Introduction
1. Ecommerce Penetrating Bharat
2. COD vs Pre-paid
– Compare Return Rates
3. Which categories are seeing maximum growth?
– Travel Accessories and Home Decor
– Pharmaceuticals
4. Top Categories Remain the Powerhouse
– Fashion and Cosmetics
5. Quick ecommerce operations tip for high order volumes
– Traceability
– Advanced Picking
– Electronics & Gaming Accessories Power Up
6. Quick ecommerce operations tip for high order volumes
– Buffer Inventory
– Flexible Warehousing Workflow
– Fastlane Courier Allocation
7. Unicommerce Empowering India’s E-commerce Ecosystem
The annual festive sales in India ignites the e-commerce industry. From Navratri’s dazzling vibrant energy to Diwali’s dazzling lights, these sales periods are a consumer’s dream and a goldmine for ecommerce businesses. Shoppers hunt for killer deals while e-tailers gear up for explosive growth and skyrocketing engagement.
At Unicommerce, we’re plugged into the heart of this vibrant e-commerce ecosystem, and our platform processed 20-25% of India’s dropship volumes during 2023. With seamless integrations with over 140+ marketplaces and web stores, we act as a comprehensive platform for D2C brands, retail companies, and small sellers. This deep dive into the data ocean gives us a front-row seat to the festive sales frenzy.
This year, the first four days of the festive season sale ( 26th- 29th September) kicked off with a bang. Flipkart’s “Big Billion Days,” Amazon’s “Great Indian Festival,” and Myntra’s “Big Fashion Festive Sales” were just the tip of the iceberg, showcasing the insatiable consumer appetite for festive deals.
Unicommerce analyzed the order volumes processed through its platform during the first four power-packed days of the festive season sales this year. We have analyzed the data gathered from marketplaces and gained valuable insights into regional purchasing behaviors, category performance, and preferred purchasing choices.
And guess what? The order volume saw a spike of 20% compared to last year’s festive season!
That’s right, folks. Festive sales got bigger this year, and Unicommerce is here to unlock the insights that keep your business at the forefront of the e-commerce revolution.
Unicommerce processed a staggering 1.3 million orders across diverse product categories during this year’s festive season. Buckle up as we delve into the most insightful trends that reveal how India embraced online shopping!
Stay tuned for more data-driven deep dives and actionable strategies to help you conquer the next festive sales bonanza!
E-commerce Penetrating Bharat
E-commerce is making further inroads in Bharat, energizing rising consumption and igniting the emergence of vibrant new businesses in Tier 2 and Tier 3 cities!
This festive season, tier III cities and beyond areas outshone tier II and tier I cities compared to last year. Tier 1 showed growth in order volume of 16%, tier 2, 21%, and tier 3, 22%, respectively. This shift highlights the evolving dynamics of the e-commerce market across these regions.
The Indian e-commerce landscape is no longer just a metropolitan playground. A fascinating shift is underway, fueled by the rising online aspirations of Tier 2 and Tier 3 cities. This is fueled by increased internet penetration and a growing desire among consumers to embrace the convenience and variety of online shopping.
COD – The Preferred Choice
Unicommerce’s deep dive shows that COD (Cash on Delivery) continues to be a preferred way of payment for shoppers. COD purchases experienced a significant surge, with over 35% increase during the festive period.
What does this mean for sellers? It’s time to embrace flexibility! By offering a wider range of payment options, brands can cater to diverse customer preferences and ensure a seamless shopping experience. This ultimately translates to higher customer satisfaction and loyalty.
But Wait, There’s More – This analysis goes beyond just COD dominance. Here’s a quick tip to efficiently handling COD orders.
Compare Return Rates: Analyze the difference in return rates for COD versus prepaid orders. If COD returns are significantly higher, it might be beneficial to incentivize prepaid purchases. This can help your business reduce overall return costs.
Delays and poor visibility of orders can occur due to a lack of proper shipment tracking, which can be frustrating for both brands and customers. Unicommerce can streamline an order’s post-shipment journey by providing seamless visibility into shipments and expected delivery dates for both brands and customers. This enhanced tracking capability not only improves transparency but also helps reduce RTO cases in COD orders.
Which Product Categories are seeing maximum growth?
Our data wizards have been busy dissecting the festive season and uncovered a treasure trove of insights for e-tailers. This analysis dives into both established and emerging product categories, revealing key trends that can shape your winning strategy.
Let’s delve into some of the fastest-growing or emerging categories:
1. Home Decor and Travel Accessories
As the festive season begins, Indian consumers are increasingly drawn to purchasing home decor products; this trend is particularly evident during the four-day festive period. Many prioritize creating beautiful, inviting living spaces by investing in luxury home decor items.
Along with home decor accessories, travel accessories is another emerging category that witnessed over 250% growth during these four days of the festive season. Because the festive season is a time when people travel to meet their loved ones for celebrations, the trend suggests that as people’s buying capacity increase, they are more likely to invest in items like travel accessories.
2. Pharmaceuticals
Witnessing over 100% order volume growth compared to 2023, pharmaceuticals emerged as one of the biggest gainers in Health and Pharma. This points to a potential increase in healthcare needs among consumers. Sellers in the health sector can capitalize on this by expanding product offerings.
Quick E-commerce Operations Tip for High Order Volumes
Sellers can leverage real-time inventory updates as their secret weapon to prevent stockouts and overselling by maintaining precise stock levels at festival sales.
Many products are sold in bundles during the the festive season, such as passport holders and gadget organizers. Unicommerce kit-to-order and kit-to-stock features can help brands create irresistible deals and maximize sales and reduce logistics cost. With optimized inventory management, brands can strategically capitalize on the seasonal surge, maximizing both sales and efficiency.
Quick read – How to Sell on Meesho
Top Product Categories Remain the Powerhouse
1. Fashion and Cosmetics
Fashion and cosmetics maintain their dominance in the e-commerce arena, showcasing enduring consumer appeal. Makeup sales in the beauty and wellness sector surged by a remarkable 54% YoY growth, while fashion accessories saw a steady 32% growth. These trends point to a desire for self-expression and confidence, driving innovation and excitement in these top-performing categories.
2. Electronics & Gaming Accessories Power Up
Gamers and tech enthusiasts rejoice! Although this category caters to a high order volume, it has shown 100% growth compared to last year. This reflects a passion for the latest gadgets and electronic gear during the festive season.
Quick E-commerce Operations Tip for High Order Volumes
How can you handle the avalanche of orders from these top categories? Here are a few battle-tested solutions:
1. Traceability: Think of EAN level and serialized traceability as your GPS for inventory management. These systems provide real-time visibility into stock levels and product movement. Track which items are flying off the shelves, locate popular items quickly and ensure customers find their desired items without delay.
2. Advanced Picking: Utilize quieter periods to pick upcoming orders. This way, your staff can efficiently handle the surge without incurring additional costs.
3. Buffer Inventory: Buffer inventory serves as a safety net during surges in demand, ensuring that popular items remain in stock. For example, if you commit 100 units of inventory, allocate 90 units as core stock and 10 units as buffer stock. This strategic reserve mitigates the risk of stockouts, enables timely fulfillment of orders, and enhances customer satisfaction, allowing retailers to navigate peak sales periods with confidence and efficiency.
4. Flexible Warehousing Workflow: Unicommerce Warehouse Management System allows multi-interface support, ranging from handheld to web to CSV-based operations, thereby providing flexibility in operations based on the business needs and nuances of various industries.
5. Fastlane Courier Allocation: The serviceability of delivery partners in Tier 2 and Tier 3 regions can fluctuate rapidly due to factors such as weather, traffic, and resource availability. Instead of getting stuck with an unfulfilled order, we noticed brands can utilize fastlane courier allocation, automatically skipping the initially assigned partner and quickly reassigning the task to another available courier partner. This efficient approach ensured orders were processed smoothly, maintaining a seamless delivery experience.
Unicommerce Empowering India’s E-commerce Ecosystem
Unicommerce has released its Festive Trend Report based on in-depth sales insights gathered from multiple marketplaces. As an operating system of the e-commerce ecosystem, Unicommerce empowers ~3,600 brands, e-tailers, D2C brands, and sellers across multiple categories by managing their end-to-end backend operations.
With 260+ stable integrations across marketplaces, webstores, shipping providers, ERPs, and POS systems, we offer a full stack of solutions for brands, e-tailers, and sellers. Our offerings include Warehouse Management, Order Management, and Omnichannel Retail Management, alongside products like UniShip, which simplifies logistics and return management, and UniReco, which streamlines payment reconciliation.
With a proven track record of managing over 3150+ online stores and 8800+ warehouses, Unicommerce handles 20-25% of dropship orders in India, demonstrating our ability to scale and meet the evolving demands of brands. Unicommerce is your all-in-one partner, helping you navigate the complexities of e-commerce and drive operational excellence across every aspect of your business. This festive season, leverage Unicommerce’s comprehensive solutions to optimize your e-commerce operations and stay ahead of the competition.
Related Resource
- Download E-commerce Industry Trends Reports