E-commerce likely to cross 11% of India's retail sales in 2025

Fynd is an unified commerce platform backed by Reliance Retail Ventures Limited. The report reveals how the country’s online retail landscape is shifting from discount-driven growth to operational efficiency and smarter fulfillment. 

The growth during this festive season (September–October 2025) shopping period - marked by celebrations such as Onam, Navratri, Dussehra, Karwa Chauth and Diwali was powered by value-conscious consumers, the rise of Tier 3 markets, and the rapid adoption of omni-channel fulfilment models.

Drawing insights from over 60 brands across leading marketplaces such as Myntra, Flipkart, Amazon, AJIO, Nykaa, and Tata CLiQ, the report tracks performance across apparel, footwear, and fashion accessories categories. The findings reveal a maturing market — one where price sensitivity is giving way to value-driven confidence, convenience, and operational agility.

Among the top-performing regions, Delhi, Maharashtra, and Uttar Pradesh led in order volumes, while Gujarat showed steady growth as a rising demand hub. Southern states, led by Karnataka, contributed significantly to both demand and fulfilment, with Bengaluru and Hyderabad ranking among the top metro contributors. The region also stood out for leading the country in digital payment adoption. Overall, digital payments accounted for 53 per cent of total festive season transactions, while cash-on-delivery remained popular in smaller cities, underscoring India’s hybrid retail reality where rapid digital adoption and traditional payment preferences continue to coexist.

Footwear surged from 7 per cent to 33 per cent of festive sales, driven by growing consumer confidence in online fashion. Tier 2 and 3 cities contributed 65 per cent of orders, with Tier 3 alone at 46 per cent. Myntra and Flipkart captured 89 per cent of volumes, with Myntra leading in the Northeast and Southern states driving digital payments. Average discounts fell to 34 per cent, returns and RTOs improved, and store-based fulfilment matched warehouse fulfilment for the first time, the report stated.

“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,” said Farooq Adam, co-founder, Fynd. “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.”

Beyond topline growth, the findings underline a broader structural evolution in how brands are approaching festive commerce. From rationalised discounting and improved logistics efficiency to regional diversification and digital payment adoption, the report paints a picture of a market moving beyond festive spikes to year-round operational excellence. For retailers, the message is clear — the next phase of growth will be powered by agility, omni-channel readiness, and sharper consumer segmentation.

ALCHEMPro News Desk (RR)