India's festive e-commerce patterns indicate shift towards value-driven spending

New Delhi: Fynd’s Festive Season Report 2025 suggests that India’s online retail landscape is moving away from discount-led spikes towards more stable, operationally driven growth.

The findings point to a market shaped increasingly by value-conscious shoppers, expanded access in smaller cities, and a growing reliance on omnichannel fulfilment models.

Released in Mumbai on November 18, 2025, the report draws on data from over 60 brands across major marketplaces including Myntra, Flipkart, Amazon, AJIO, Nykaa and Tata CLiQ.

It highlights the rising influence of Tier 3 consumers, with Tier 2 and 3 cities contributing 65% of total orders during the September, October festive period covering Onam, Navratri, Dussehra, Karwa Chauth and Diwali.

According to the report, India’s e-commerce penetration is projected to cross 11% of total retail sales in 2025, supported by broader access, affordability and convenience. The analysis indicates a maturing market in which shoppers prioritise value and reliable service over steep discounts.

This shift coincides with store-led fulfilment matching warehouse fulfilment for the first time, reflecting increased investment in inventory proximity and faster delivery.

Delhi, Maharashtra and Uttar Pradesh led in festive order volumes, while Gujarat recorded steady growth as an emerging demand centre. Southern states accounted for some of the strongest contributions in both demand and fulfilment, with Bengaluru and Hyderabad featuring among the top metro contributors.

Digital payments represented 53% of total transactions during the season, even as cash-on-delivery remained widely used in smaller towns, indicating a continued blend of digital adoption and traditional preferences.

The report notes changes in sector performance as well, including a notable rise in footwear sales, which increased from 7% to 33% of festive orders. Return and RTO rates also declined significantly, with Amazon reporting reductions to 8% and 2% respectively, marking one of the lowest post-sale thresholds in recent years. Market concentration remained consistent, with Myntra and Flipkart together accounting for 89% of order volumes in the fashion segment.

Commenting on the findings, Farooq Adam, Co-founder of Fynd, said, “India’s e-commerce story is unfolding on its own terms, built on speed, proximity, and precision. This festive season proved that the real levers of growth are operational, not promotional, stores doubling as micro-warehouses, networks placing inventory closer to demand, disciplined pricing anchored in everyday value, and trust-driven payments.”

He added, “The brands that will win from here won’t chase discounts; they’ll design for India’s regional realities, serve rising demand from smaller cities with faster fulfilment, and build prepaid trust. That is the uniquely Indian model of profitable and resilient scale we’re creating.”