AI adoption spreads across India’s online seller ecosystem as Bharat fuels e-commerce growth: Snapdeal report

Artificial intelligence is steadily becoming part of everyday business operations for India’s online sellers, signalling a broader shift in the country’s digital commerce ecosystem that extends well beyond large brands and technology-led enterprises.

According to Snapdeal’s latest Bharat Seller Report 2026, 56% of surveyed online sellers are already using AI-powered tools to improve business performance, highlighting how digital capabilities are increasingly becoming mainstream across India’s seller base.

In the report, Bharat refers to Tier-2, Tier-3 and smaller towns beyond metro and Tier-1 cities, including semi-urban and rural markets driving the next phase of digital commerce growth.

The findings point to a seller ecosystem that is becoming more technology-driven while continuing to remain rooted in manufacturing and value-conscious consumption patterns.

Among sellers that have adopted AI, product listings and content creation emerged as the most widely used application, with 43% of respondents leveraging AI to create product descriptions, improve catalogue management, optimise listings and enhance product discoverability across marketplaces.

The report suggests that AI adoption is no longer restricted to large businesses and is increasingly finding acceptance among MSMEs and traditional sellers seeking operational efficiency and faster growth.

“India’s online seller ecosystem is evolving rapidly. Sellers today are far more digitally mature, operationally agile, and increasingly technology-enabled. What is particularly interesting is that AI adoption is now becoming visible even among MSMEs and traditional sellers,” said Achint Setia, CEO, Snapdeal.

How central has online commerce become to seller businesses?

The report also underscores how online channels have become central to business growth strategies.

Nearly 46% of respondents said more than three-fourths of their total business sales now come through online platforms, indicating the extent to which digital commerce has evolved from an additional channel to a primary route to market.

At the same time, India’s seller economy continues to remain strongly manufacturing-led. About 66% of surveyed sellers identified themselves as manufacturers selling directly online, reflecting a growing shift towards bypassing traditional distribution networks and reaching consumers directly through marketplaces.

Why are Bharat markets becoming the next growth engine?

Another structural trend emerging from the report is the growing importance of Bharat markets.

Around 51% of sellers reported that customers from Tier-2, Tier-3 and smaller towns are growing faster for their business compared with metro and Tier-1 markets. The trend reflects increasing internet penetration, wider digital payment adoption, better logistics infrastructure and rising consumer comfort with online transactions beyond urban centres.

Despite increasing digital sophistication, affordability remains at the heart of India’s e-commerce story.

Nearly 49% of sellers said customers primarily prioritise pricing and discounts while shopping online, while 38% identified product quality as the second-most important factor influencing purchases.

The value orientation is also visible in basket sizes. Around 66% of respondents operate in categories where average order values remain below ₹500, underlining the continued strength of value commerce in India.

Together, the findings suggest that India’s next phase of e-commerce growth will be shaped by the convergence of AI-enabled selling, manufacturing-led supply chains and demand emerging from Bharat.