Amazon, Flipkart Festive Shipments Fall 10%–12% as Gadget Prices Rise

India’s festive e-commerce season has lost some momentum, with delivery dispatches during the first 10 days of Amazon’s Great Indian Festival and Flipkart’s Big Billion Days reportedly falling 10%–12% compared with the same period last year. Industry executives have attributed the slowdown to rising prices for premium electronics, including smartphones, laptops and home appliances. These products have reportedly become 30%–40% more expensive in recent months, making shoppers more cautious about large purchases during a period traditionally associated with heavy discounting.

The early slowdown comes despite strong shopper interest in online sales. Amazon reported more than 440 million visits during the opening phase of its Great Indian Festival, its highest-ever figure for that period. However, visits do not necessarily translate into completed purchases. Higher product prices, less aggressive discounts and pressure on household budgets appear to be encouraging shoppers to postpone upgrades or choose cheaper alternatives. The early shipment figures therefore point to weaker momentum in certain categories, rather than proving that India’s entire festive shopping season will end with lower sales.

Key Takeaways

• Shipment decline: Amazon and Flipkart’s festive delivery dispatches were reportedly down 10%–12% year over year during the first 10 days.
• Higher electronics prices: Smartphones, laptops and home appliances have reportedly become 30%–40% more expensive in recent months.
• Reduced discounts: Lower promotional intensity has made it harder for shoppers to find deals comparable to last year’s offers.
• Early sales value: Datum Intelligence estimated online festive gross merchandise value (GMV) at ₹29,800–₹30,900 crore during October 7–10, compared with ₹33,200 crore a year earlier.
• Amazon traffic: The platform reported more than 440 million visits during the opening phase of its 2026 festive sale.
• Demand shift: Consumers are showing greater interest in affordable products and smaller purchases.
• Full-season outlook: Some industry forecasts still expect festive e-commerce sales to grow overall, even as the early period underperforms.

Why Are Amazon and Flipkart Seeing Weaker Festive Shipments?

The first weeks of India’s festive sales are important for online retailers because they attract shoppers planning major purchases around Dussehra, Diwali and other seasonal celebrations.

Smartphones, laptops, televisions and household appliances often play a central role in these events. Retailers use promotional pricing, bank offers, exchange deals and other incentives to encourage customers to buy products they might otherwise postpone purchasing.

This year, however, higher electronics prices have weakened that equation. When the price of a phone or laptop rises substantially, even a discount may not bring the final cost down to the level customers remember from the previous festive season.

Industry executives cited by The Economic Times said dispatches during the first 10 days of the two major sales were 10%–12% below the year-ago period. Dispatches measure goods sent out for delivery, making them a useful indicator of activity, but they are not identical to total orders, completed deliveries or sales revenue.

The distinction matters because the figures cover a specific early period. They should not be interpreted as a final result for the entire festive season or as proof that both platforms experienced the same decline in every product category.

Electronics prices are discouraging big-ticket purchases

Premium electronics have become more expensive amid higher memory and component costs. Smartphones and laptops are particularly exposed to changes in the cost of memory chips, processors, storage and other specialised components.

When manufacturers face higher input costs, they may raise retail prices or reduce the scope for promotional discounts. The resulting increase can make consumers reconsider whether to upgrade immediately.

A shopper who planned to replace a functioning smartphone may decide to keep it for another year. A household considering a new laptop or television may choose a lower-priced model instead. These decisions can reduce demand for premium products even when shoppers continue browsing online.

For e-commerce platforms, the problem is significant because electronics can account for a large share of festive sale value. A slowdown in expensive products can affect overall sales value even if orders for lower-priced goods remain healthy.

Early Festive Sales Show a Decline in Value

Datum Intelligence estimated that online festive sales generated GMV of ₹29,800–₹30,900 crore between October 7 and October 10, 2026. That compares with ₹33,200 crore during the equivalent four-day period in 2025.

Metric	Festive period in 2025	Festive period in 2026
GMV during first four days	₹33,200 crore	₹29,800–₹30,900 crore
Year-over-year change	—	Approximately 7%–10% lower
Delivery dispatches during first 10 days	—	Reportedly 10%–12% lower

Source: Datum Intelligence estimates and industry reporting. GMV represents the value of merchandise sold through the platforms and should not be confused with their revenue or profit.

The comparison suggests that the early season has generated less merchandise value than the corresponding period last year. Higher average selling prices would ordinarily increase GMV if unit volumes remained stable, so a decline in value indicates that weaker demand, product mix or other factors may be outweighing that effect during the measured period.

However, the data does not establish that every retailer, seller or category is performing poorly. Fashion, beauty, personal care and other lower-priced categories may follow different patterns from smartphones and appliances.

The coming weeks will determine whether the initial weakness persists or whether later festive shopping days produce a stronger recovery.

Why Strong Website Traffic Is Not Translating Into Purchases

Amazon’s report of more than 440 million visits during the opening phase of its Great Indian Festival suggests that shoppers remain interested in festive deals.

Yet website visits are only one stage of the buying process. A consumer may browse a phone, compare several models, check bank offers and leave without completing the purchase.

The difference between traffic and transactions is especially important when prices rise. Consumers can continue researching products while postponing a purchase until they find a suitable offer or have more room in their budgets.

Amazon also reported that more than 72% of visits came from outside the top nine metropolitan areas, indicating broad interest beyond India’s largest urban markets. But visits alone do not reveal how much these shoppers spent or whether their purchases were concentrated in premium or budget categories.

Retailers therefore need to assess conversion rates, average order value, completed deliveries, returns and category-level performance alongside traffic numbers. High visitor counts can indicate strong interest, but they do not guarantee higher sales.

Discounts Are Less Effective Than Last Year

Festive promotions remain a major reason consumers shop online. However, platforms and sellers have less room to offer deep discounts when their own acquisition and operating costs rise.

Industry reporting suggests that average discounts this year have been 35%–40% lower than last year in some categories. This is a reported industry estimate, not a uniform discount reduction across every product or seller.

The comparison is also complicated by last year’s tax changes. The GST reductions introduced in September 2025 lowered the effective price of certain products, including air conditioners and washing machines, creating an additional advantage for that festive season.

Without the same tax benefit this year, retailers have to rely more heavily on manufacturer pricing, seller margins, bank offers and promotional spending to make products appear cheaper.

That makes it harder to recreate last year’s headline deals, particularly for expensive electronics. Consumers who compare prices across years may perceive current offers as less attractive even when a discount is being advertised.

For platforms, the challenge is to offer enough value to encourage purchases without absorbing so much of the cost that sales become less profitable.

Shoppers Are Becoming More Price-Conscious

The early results point to a more cautious approach to discretionary spending. Rather than abandoning online shopping entirely, some consumers appear to be shifting toward lower-priced products or postponing purchases that can wait.

This change could favour categories such as fashion, beauty, personal care, home essentials and smaller electronics accessories. These products typically require less upfront spending than premium smartphones, laptops or major appliances.

Consumers may also trade down within a category. Instead of buying a flagship smartphone, a shopper may choose a mid-range model. Someone planning a laptop upgrade may select a configuration with less memory or storage to stay within budget.

These choices can preserve order volumes while reducing the average value of purchases. That distinction helps explain why a festive season can still generate substantial activity even when its early sales value falls.

The trend may also affect sellers differently. Premium electronics brands could face weaker demand, while value-oriented brands and sellers with affordable products may be better positioned to attract shoppers.

What the Slowdown Means for Sellers and E-commerce Platforms

For marketplace sellers, the combination of higher product costs and lower promotional intensity creates a difficult operating environment. Sellers must decide whether to protect margins by maintaining prices or reduce prices to stimulate demand.

Deep discounts may help clear inventory, but they can reduce profitability. Holding prices steady may protect margins on each sale, but it risks slower inventory turnover and higher storage costs.

Platforms face a similar trade-off. They must keep their sale events attractive while balancing promotional spending, logistics expenses and the commercial interests of sellers.

A sustained slowdown in premium electronics could encourage platforms to promote affordable alternatives more aggressively. They may also focus on product bundles, exchange programmes, financing options and category-specific offers to help customers manage the upfront cost.

However, financing offers introduce their own considerations. Consumers need to understand interest charges, processing fees, repayment schedules and eligibility requirements before committing to an instalment plan.

For brands, the season will provide a test of pricing power. Businesses that can offer convincing value without excessive discounts may be better positioned to maintain sales as shoppers become more selective.

Does This Mean India’s Festive E-commerce Market Is Shrinking?

Not necessarily. The reported 10%–12% decline concerns dispatches during the first 10 days of the two major sales. It does not represent the final result for the entire festive season.

Datum Intelligence has projected that total online festive sales could still grow by approximately 25%–29% to ₹1.5–₹1.55 lakh crore, with growth increasingly supported by lower-priced products and higher item volumes.

That forecast is not a confirmed outcome. It depends on how demand develops through the remainder of the season, how much consumers spend and whether platforms can stimulate purchases despite higher prices.

The market could therefore experience two trends at once: weaker early demand for premium electronics and continued growth in other categories. The final outcome will depend on the relative size of these segments and the pace of purchases during the remaining sale period.

It is also important to distinguish GMV from platform revenue. GMV measures the value of merchandise transacted through a marketplace, while platform revenue reflects the income recognised from services such as commissions, advertising and fulfilment. A change in GMV does not translate directly into the same percentage change in revenue or profit.

The Bigger Picture

The early festive slowdown highlights the influence of affordability on India’s online retail market. High traffic and extensive sale events cannot fully compensate when consumers face higher prices for products that account for a large share of festive spending. The combination of costlier electronics and less generous discounts is encouraging some shoppers to delay upgrades or move toward cheaper alternatives.

At the same time, the early numbers should not be mistaken for a final verdict on the season. Lower-priced categories may support order volumes, and industry forecasts still anticipate overall festive e-commerce growth. The important indicators to watch are completed deliveries, sales value, average order size, category mix and whether demand improves during the remaining festive shopping period.

Looking Ahead

Amazon and Flipkart will be looking to sustain consumer interest as the festive season continues. More competitive offers, budget-friendly product ranges and financing options could help stimulate demand, although retailers must balance promotions against rising costs. The next set of sales and dispatch figures should provide a clearer picture of whether the early weakness is temporary or signals a broader change in consumer spending.

For shoppers, the environment may offer opportunities to compare models and find value, but an advertised discount should always be evaluated against the product’s final price and specifications. For sellers and brands, the lesson is that strong traffic alone is insufficient: converting interest into purchases will depend on affordability, product relevance and the ability to offer value without undermining margins.

Frequently Asked Questions

1. Why are Amazon and Flipkart’s festive shipments down?

Industry executives have attributed the reported 10%–12% year-over-year decline in early festive dispatches to higher prices for premium electronics, weaker demand for expensive products and less generous discounts.

2. How much have electronics prices increased?

Industry reporting cited increases of 30%–40% for premium electronics in recent months. The actual change varies by product, brand, model and time period.

3. How much did online festive sales generate in the first four days?

Datum Intelligence estimated GMV of ₹29,800–₹30,900 crore from October 7 to October 10, 2026, compared with ₹33,200 crore in the corresponding period last year.

4. Does the shipment decline mean festive e-commerce sales will fall for the full season?

No. The dispatch figures cover the first 10 days of the major sales. Some industry forecasts still expect total festive e-commerce sales to grow, supported by lower-priced products and purchases across other categories.

5. Why are discounts weaker this year?

Higher product and input costs have reduced the room for aggressive promotions in some categories. Last year’s festive period also benefited from GST reductions for certain products, a benefit that has not been repeated in the same way this year.

6. What should shoppers consider before buying expensive electronics?

Compare final prices across sellers, check the exact model and specifications, review warranty and return terms, and calculate the total cost of any financing offer. A discount label alone does not establish that a product is the best-value purchase.