India’s festive e-commerce season has kicked off on a high note, with Amazon and Flipkart clocking record traffic and sales during their flagship events — Big Billion Days (TBBD) and the Great Indian Festival (GIF). Robust demand, GST cuts, and rising participation from Gen Z shoppers have created the strongest start yet for India’s digital retail sector.
According to market intelligence firm Datum Intelligence, online festive season sales surged 29 per cent year-on-year to Rs 60,700 crore in the first week, setting an all-time high for festival openings, Moneycontrol reported.
First-Week GMV Sets A New Benchmark
Between September 22 and 28, these online shopping platforms recorded a gross merchandise value (GMV) worth Rs 60,700 crore, the highest-ever opening week for India’s e-commerce market. While mobile phones contributed 42 per cent of GMV, appliances and grocery stood out as the fastest-growing categories, rising 41 per cent and 44 per cent year-on-year, respectively.
GST 2.0 reforms gave a boost to big-ticket appliance purchases, while quick commerce expansion and festive gifting drove grocery sales. Consumer electronics and homeware also posted healthy double-digit growth.
Flipkart’s Big Billion Days Draws Gen Z Shoppers
Flipkart reported 606 million visits in the first 48 hours of Big Billion Days, with Gen Z accounting for nearly one-third of the traffic, almost double their usual share.
“A critical enabler of this surge has been the GST 2.0 reforms, which unlocked demand in high-value categories. Customers who were browsing but holding back in September converted quickly once the revised rates came into effect,” said Pratik Shetty, Vice President, Growth & Marketing, Flipkart.
He noted that traffic and transactions remained strong throughout the opening weekend, signaling a structural shift compared to earlier years when activity typically slowed after the first days.
Amazon’s Great Indian Festival Sees Record Visits
Additionally, Amazon also reported a strong opening with 38 crore visits in 48 hours, over 70 per cent of which came from beyond the top nine metros. The platform witnessed strong premiumisation trends, with smartphones above Rs 20,000 growing 50 per cent year-on-year, QLED TVs up 23 per cent, and Mini-LED TVs up 27 per cent. Premium watches, jewellery, and beauty products also recorded significant gains.
“The #GSTBachatUtsav initiative has been incredibly well-received, with sellers passing on GST benefits worth crores in just 48 hours,” said Saurabh Srivastava, Vice President, Amazon India. The company also highlighted its fastest-ever deliveries, with over 80 lakh products reaching Prime members within two days.
Why Shoppers Bought Early This Year
Early-access sales on September 22 provided a strong head start, with the first two days alone contributing nearly one-third of the week’s GMV. Unlike previous years, momentum did not taper off after the opening weekend. Instead, both Flipkart and Amazon sustained traffic and transactions, pointing to a broader and more resilient consumption cycle.
Key Drivers of Growth
Several factors are driving the surge in festive e-commerce sales in 2025. The recent GST reforms have made high-value purchases more affordable, encouraging consumers to spend on big-ticket items such as appliances and premium electronics. At the same time, Gen Z shoppers are emerging as a powerful demand driver, contributing significantly to the rise in traffic and transactions across platforms. Together, these trends are shaping a broader and more sustained growth cycle for the sector.
Premiumisation in smaller towns, with customers outside metros are opting for higher-value products.
Datum Intelligence observed that festive gross merchandise value (GMV) has doubled in five years, with 2025 standing out for broader and more sustained demand rather than just discount-driven spikes.
What’s Next For Festive E-Commerce?
With more than half of projected sales already achieved in week one, platforms are gearing up for an even stronger October ahead of Diwali.
“With GST reforms improving affordability and sellers gaining renewed confidence, the conditions are ripe for sustained consumption across categories through October and beyond,” said Flipkart’s Shetty.
If the current momentum holds, 2025 could mark the biggest festive season in India’s e-commerce history, signaling a shift towards stable, demand-led growth rather than short-lived bursts.
