RedSeer: India’s E-Commerce Market Becoming More Balanced Beyond Festive Peaks

The report states that to reduce their dependence on the festive season, various brands should focus on launching special product offers or promotional campaigns during lean sales periods, such as the first quarter of the calendar year. These companies will be at the forefront in the future... RedSeer stated in the report that, as times change, online retail in India is gradually moving out of its festive peak. In the future, those companies will be market leaders who can not only efficiently handle the high festive demand but also generate demand during lean months.

Categories like grocery, beauty products, and personal care are considered the most stable in terms of online sales, as demand for these remains relatively consistent throughout the year. This is typical of low-priced and frequently purchased products. Fashion categories, including home decor and furniture, exhibit moderate seasonal trends. While they experience a surge during the festive season, fluctuations are less pronounced.

Online shopping during the festive season is no longer limited to metro cities; people in smaller cities are also shopping extensively online. People living in tier-2 and tier-3 cities saw record-breaking online shopping this Diwali, surpassing major cities like Delhi and Mumbai. An analysis of over 42.5 million shipments by logistics intelligence platform ClickPost revealed that non-metro cities have become the new backbone of e-commerce.

According to the report, 50.7% of total Diwali orders came from tier-3 cities alone, while tier-2 cities contributed 24.8%. This means smaller cities accounted for 74.7% of the country's total online order volume.

Order Values ​​Also Increased
This year, the average order value during the festive season increased to ₹4,346, up from ₹3,281 in 2024. This means orders from smaller cities increased by 32.5%. This shows that customers are now buying not only more, but also more expensive and premium items.