As India's holiday shopping season approaches, e-commerce giants are taking action

Typically, October and November are the happiest times for Indian merchants as consumers gear up for the holiday shopping season.

As the epidemic gradually eases, e-commerce giants Amazon and Flipkart are gearing up to attract more consumers before the shopping season.

A look at the data from the past few years shows why the holiday season is so important for e-commerce companies.

In 2020, when the epidemic was raging , consulting firm Redseer predicted that e-commerce companies' holiday sales would reach US$4.1 billion.

However, the companies beat expectations, posting a staggering $7.5 billion in sales during the holiday season.

While Redseer predicts online sales will reach $11.8 billion during India's 2022 holiday season, this is the first shopping season in three years that has been less affected by the pandemic.

As life returns to normal and commercial streets gradually regain their pre-pandemic atmosphere, Amazon and Flipkart will not only have to compete with each other, but also with more than 1.5 million physical retailers for sales.

In the past few years, both Amazon and Flipkart have run a series of sales ahead of Dussehra and Diwali.

The two companies will spend billions of dollars on event advertising, merchant entry discounts, recruitment, infrastructure, etc.

For example, last year Amazon hired nearly 110,000 temporary workers, built more than 60 distribution centers in 15 states, and increased its warehousing capacity by 40% during the holiday season compared to 2020.

Flipkart has also doubled its supply capacity, adding more than 75,000 sellers to its platform and increased its influencer marketing spending.

The situation in 2022 seems to be no different from previous years, with both giants planning to grab more share in the Indian e-commerce market.

It is estimated that by 2030, the size of India's e-commerce market will reach US$400 billion.

India's holiday sales season will begin as early as September 30. Amazon India and Flipkart have launched new products, waived seller platform fees, and launched influencer marketing and other activities to seize the market.

To help new sellers enjoy holiday season bonuses, Amazon is offering a 50% sales/referral fee reduction to new sellers joining the platform between August 28 and October 26.

In addition, Amazon said it has expanded its logistics network and increased its warehouse capacity by 40%. It now has more than 60 fulfillment and sorting centers in 19 states.

Amazon is also actively hiring temporary workers to meet demand during the holiday season and has strengthened its partnership with Indian Railways, which now has 325 intercity transport lanes for delivering Amazon packages.

Flipkart , on the other hand, said it has expanded its local network with around 1.1 million merchants, including those on its social commerce platform Shopsy, who will participate in its promotions.

Flipkart has also partnered with Indian Railways and Mumbai Local Trains for branding and outreach activities.

In addition, Flipkart also plans to increase its temporary worker headcount from 115,000 to 250,000 and will create indirect employment opportunities in the form of suppliers, trucking partners, etc.

Flipkart’s largest distribution centre in Harinhata, West Bengal, will handle 1 million deliveries a day, and more than 50 million shoppers are expected to visit Flipkart’s app and website during the eight-day sale.

However, both Flipkart and Amazon have recently come under the spotlight of the Indian government, accused of monopoly, allowing false reviews and favoring its own sellers, and the government seems to be tightening its control over e-commerce giants.

While both giants are pulling out all the stops to attract customers ahead of the holiday season, it remains to be seen whether the challenges they face will have an impact on their performance.

India

E-commerce

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