Upcoming Festive Season To Witness 75% Rise In Online Advertising By Small Sellers On E-Commerce Platforms

New Delhi, Sept 29 (KNN) This festive season, the small sellers on e-commerce platforms are looking to spend 75 percent more than they did in the year on online advertising to drive sales, according to a latest report by management consulting firm Redseer.

Mrigank Gutgutia, Partner at Redseer, said, “The festival period would likely enable sellers, especially the smaller ones, to come out of the challenging sales environment and they were optimistic of strong growth.”

“Accordingly, they are willing to significantly ramp up their advertising spending on the e-commerce platforms during this festive period," Gutgutia said.

The festival season typically runs from late September or mid-October to December when consumer spending sees a spike.

Overall, across different-sized sellers, the report anticipates a 15 percent spending growth in online ads from the previous year’s festival season and a 50 percent growth versus business-as-usual periods of this year.

Flipkart and Amazon, the biggest e-commerce platforms in the country, have announced their flagship season sales in the second week of October, which will build up to Diwali in the second week of November, reported Money control.

Online retailers expect festive season sales to rise up to 20 percent from the year-ago period to over Rs 90,000 crore as consumer spending normalises and margins improve due to rising ticket sizes of purchases.

The first online festive season sales were held in the country in 2014. Over these 10 years, the ecommerce market has grown almost 20 times from a gross merchandise value (GMV) of Rs 27,000 crore in the fall of 2014 to an expected level of Rs 5,25,000 crore in 2023.

The number of annual transacting users has jumped 15 times to hit 230 million this year. The festival season is expected to see a minimum of 140 million shoppers doing transactions online.

This year could see increased contributions from higher margin categories like beauty & personal care (BPC), home & general merchandise, fashion, etc, the report said.

“Over the last several quarters, we are seeing enhanced GMV contributions from categories beyond electronics. While electronics sell a lot in the festive period, looking at the bigger picture and comparing the festive sale periods over the last several years, there is a clear trend of category diversification,” Gutgutia said.  (KNN Bureau)