MSMEs eye $12 bn festive season e-commerce boost

The Indian festive eCommerce market is anticipated to reach $12 billion between October and December this year, a substantial 23% increase from last year’s $9.7 billion, as per the recent insights released by Shiprocket, an e-commerce enablement platform. Growth is expected to be fuelled by strong demand in fashion, electronics, beauty, and personal care segments, with quick commerce expected to contribute $1 billion in gross merchandise value, the company stated.

Improved internet access, rising disposable incomes, and better digital literacy in Tier-2 and Tier-3 cities have driven deeper digital penetration. As a result, around 60% of online festive orders are expected to come from non-metro areas.

An October report by Datum Intelligence also revealed that eCommerce festive sales in the first week alone totalled ₹54,500 crore, highlighting the growing strength of online shopping in India. This surge points to promising prospects for MSMEs as they tap into the expanding digital market.

Insights show that weekend sales play a key role, with Saturday and Sunday together making up 27% of total festive sales—14% on Saturdays and 13% on Sundays.

India's eCommerce export market, valued at $3-4 billion, is projected to soar to $200-300 billion by 2030, driven by MSMEs tapping into global markets and government initiatives like DGFT. Cross-border sales grew 15-20% in 2023, with MSMEs capitalising on demand for handicrafts, home décor, and fashion, the insights reveal.

"India’s cross-border eCommerce exports, currently valued at around $2-4 billion, have the potential to skyrocket to $200-300 billion by 2030…70% of the SMEs we worked with were hesitant to pursue cross-border exports due to these obstacles, which is why we launched Shiprocket X—to help MSMEs overcome the biggest barrier to entry for selling in markets like the US,” says Akshay Ghulati, CEO of International Shipping.

“Further easing compliance requirements, such as simplifying FIRC regulations for low-value shipments and making returns of undelivered products back to India more efficient, would greatly accelerate this growth,” Ghulati adds.

Shiprocket is an e-commerce enablement platform which supports SMEs, D2C, and social commerce retailers with a comprehensive tech stack for shipping, fulfilment, customer communication, and marketing. Launched in 2017, it integrates with platforms like Shopify and Magento, offering multi-carrier solutions, order management, and fulfilment across 24,000+ Indian pin codes and 220 global locations. With over 45 warehouses and 25+ courier partners, Shiprocket enhances post-purchase experiences and logistics efficiency.