Online sales see sharp increase on first three days of festival season

27 Sep 2022 , 10:12 AM

The first three days of the holiday shopping season have seen a two- to five-fold increase in demand for goods in categories including cellphones, fashion, home furnishings, and personal care compared to business as usual (BAU) days.

On September 23, Amazon and Flipkart began their first round of holiday sales, which will continue through September 30. They often plan additional similar weeks of offers and promotions until Diwali, with a gap of 2-3 days between each phase.

“The first few days have undoubtedly been better for us than last year’s holiday sales.” In comparison to BAU days, demand has increased by 2-4X. According to Varun Alagh, co-founder and CEO of skincare company Mamaearth, “In 2021, much of the pent-up demand was captured in July after the lockdowns, and the festive season was quite dismal.”

Online retailers are observing a simultaneous rise in their cost-per-click and reductions in conversion rates as the scope of giveaways and social media advertisements to attract traffic during sales have gone back to pre-pandemic levels.

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