Small online sellers set to push their ad budgets higher this festive season
- Most online sellers have seen muted growth in 2023 and expect the festive season to bring a change.
- Smaller sellers are willing to contribute a higher share of their revenue towards ads.
- As many as 62% sellers say that e-commerce platforms are supporting their festive planning.
- Online sellers expect at least a 15% jump in
festive salesas compared to last year.
AdvertisementWith opportunity comes responsibility, Winston Churchill had once famously said and India’s online sellers are getting ready with a similar mindset at the onset of the festive season. Sales have been muted so far in 2023 but in a bid to do better than the previous year and pick up their stagnant fortunes, the small online retailers are opening up their wallets to spend on marketing.
As per a report by Redseer, the marketing budgets of all sellers is likely to expand 50% from business-as-usual (BAU) times. What is more, this might go up to 75% more when it comes to the smaller players.
In other words, the smaller sellers are willing to contribute a higher share of their revenue towards ads when compared to larger sellers. This is an offshoot of the muted season that online sellers saw. Only 40% of online sellers surveyed saw over 10% revenue growth this year.
“The festive period is expected to enable sellers, especially the smaller ones, to come out of the challenging sales environment seen through this and sellers are optimistic of strong sales growth. Accordingly, they are willing to significantly ramp up their advertising spending on the ecommerce platforms during this festive period,” says Mrigank Gutgutia, partner at Redseer Strategy Consultants.
Online sellers are a tad more bullish about sales this festive season. They expect at least a 15% jump in festive sales as compared to last year. The median sales growth for the sellers is pegged at 26%.
The festive season starts in September and goes all the way to November with Diwali. By Redseer’s projections, e-tailing sales will rake in approximately ₹90,000 crore in gross merchandise value (GMV). That’s 18-20% more than what was sold last year.
“Sellers across the categories including in the lower average selling price (ASP) ones like fashion are bullish about this growth trajectory, which should provide a respite in this otherwise challenging macro-environment,” the consultancy firm said.
Apart from bullish expectations, online sellers are also now more confident about e-Commerce platforms that their tailored solutions. As many as 62% said that the platforms have been supportive in their festive planning.
“Through our surveys, sellers have highlighted the strong support received from platforms in terms of data analytics, trends predictions, consumer visibility, among others,” Redseer said.
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