Amazon's festive sale volumes jump over 50%, EMI spending rises 40% as shoppers trade up
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Amazon's Great Indian Festival is witnessing a sharp rise in shopping volumes, with demand growing more than 50% year-on-year, even as inflationary pressures and uncertainty over consumer spending weighed on the broader consumption outlook. The bigger surprise, however, is not just the increase in purchases but what consumers are buying. From premium smartphones and smartwatches to coffee makers, air fryers and larger televisions, shoppers are increasingly opting for higher-priced products across categories.
The festive sale has recorded 335 crore customer visits, or 3.3 billion visits, so far, while customers have saved ₹2,800 crore through deals and offers, the highest such savings figure Amazon has recorded in several years, Aman Deep Lohan, director, Home, Kitchen and Outdoor at Amazon, told Fortune India.
The sale opened with a 100% increase in shopping volumes compared with the opening day last year, marking the platform's strongest opening. The momentum has continued through the event, although the category mix has shifted as Diwali approaches, Lohan said.
"Customers actually were waiting for the Great Indian Festival that Amazon had to offer. And we are seeing a sustained momentum throughout even now," he added.
There is a visible growth in premium products. Demand for premium Android smartphones priced above ₹30,000 has risen 50% year-on-year, while smartwatches, including Apple Watch, Garmin and Whoop, are seeing four to five times the demand recorded last year. More than 60% of the televisions sold during the event are larger than 55 inches.
Beyond electronics, coffee makers have recorded 80% growth, while air fryers are up 55%. Solar panels, another emerging category on the platform, have seen demand increase sevenfold year-on-year. Luxury beauty products are growing at 30-35%.
Smaller cities drive growth as shoppers trade up
The premiumisation trend is also being supported by financing options, with customers increasingly using bank discounts and no-cost EMIs to upgrade to higher price points. EMI spending on Amazon has increased 40% compared with last year, showing greater adoption of affordability options even as consumers spend on more expensive products.
Amazon has partnered with banks including SBI, ICICI Bank and HDFC Bank to offer instant discounts and no-cost EMIs during the sale.
Geographically, the growth is extending well beyond metros. More than 70% of customer visits during the event have come from tier 2 and tier 3 cities, while these markets account for 60-65% of the growth in sales. Amazon also recorded orders for two-wheelers from 4,500 pin codes, including premium motorcycles such as Triumph.
The company is also seeing traction from smaller sellers. The number of small and medium business sellers recording a tenfold spike in sales is 30% higher than last year. Some new sellers have recorded 2.3 times year-on-year growth in unit sales, with demand coming from cities such as Guntur, Ajmer, Bathinda and Hooghly.
How is Amazon's speedy arm doing?
Integrated into the festive sale for the first time this year, the service is now present in around 120 cities, supported by more than 800 micro-fulfilment centres. Amazon says one in every two products in the cities where it operates is being delivered within minutes.
The channel has also brought in 23 times more first-time shoppers to Amazon than last year.
More than 10 million products were available for same-day delivery across the country during the event, as Amazon increased investments in logistics and warehousing.
No longer limited to everyday essentials, customers are increasingly using it to shop for home and kitchen products, small appliances, electronics, fashion and beauty products. Air fryers, festive string lights, diyas, candles, ethnic wear and other home products are among the categories seeing traction. Beauty, Lohan said, has emerged as one of the biggest categories on Amazon Now.
Lohan attributed the overall sales success to a combination of selection, value and delivery speed. While electronics and large appliances drove purchases in the initial phase, demand is now shifting towards ethnic wear, festive decorations, sweets and gifting products as Diwali approaches. The main sale is scheduled to continue until Diwali, with some offers expected to remain available until November 10.