India's festive e-commerce sales climb 17% but average spending dips

India's e-commerce sector delivered modest growth during the festive shopping season, with total online sales rising 17 per cent to ₹1.41 lakh crore, according to market intelligence firm Datum Intelligence. However, the performance fell short of earlier forecasts, signalling cautious consumer behaviour during a period traditionally marked by robust spending.

The slowdown was evident in transaction values, with average card payments declining 13 per cent compared to the previous festive period. This contraction in per-order spending suggests Indian consumers are becoming more selective in their purchases, opting for lower-priced items or reducing cart sizes despite the proliferation of discounts and promotional offers.

The mobile phone segment, typically a growth engine during festive sales, also showed weakness during the period. Electronics and large-ticket items have historically driven significant volumes during the year-end shopping surge, making the underperformance in this category a notable headwind for overall e-commerce momentum.

The mixed results reflect broader economic headwinds facing Indian consumers, including inflation and shifting purchasing patterns. While the 17 per cent year-on-year growth demonstrates underlying demand, the miss against forecasts and decline in average transaction values underscore a cooling in festive season exuberance compared to previous years.