Fynd has released its 2025 Festive Season Report, offering key insights into the evolving dynamics of India’s e-commerce landscape. The report reveals a significant shift from discount-driven growth towards operational efficiency, with a particular emphasis on omnichannel fulfilment and value-driven consumer behaviour. The festive shopping period, covering major festivals such as Onam, Navratri, Dussehra, Karwa Chauth, and Diwali, was marked by a surge in demand from Tier 2 and 3 cities, contributing to 65% of the total order volumes. This indicates that convenience and value are becoming more important drivers of growth, with a growing preference for faster, smarter fulfilment solutions.
According to the findings, India’s e-commerce penetration is projected to exceed 11% of total retail sales in 2025, underscoring the rapid digital transformation across the retail ecosystem. The festive shopping period was notable not only for its sales growth but also for the shift towards omnichannel retail models, where store-based fulfilment matched warehouse fulfilment (51% vs 49%), marking a milestone in cross-location inventory management. This move to decentralised fulfilment allowed retailers to reduce potential sales losses by improving inventory availability closer to demand, thereby enhancing the customer experience.
The report, which draws on data from over 60 brands across leading marketplaces such as Myntra, Flipkart, Amazon, AJIO, Nykaa, and Tata CLiQ, highlights several trends shaping India’s e-commerce ecosystem. Notably, footwear sales surged, accounting for 33% of total festive sales compared to just 7% the previous year. Additionally, Tier 3 cities drove 46% of total orders, while Tier 2 and 3 markets combined accounted for 65%, emphasising the growing influence of semi-urban and rural regions on the e-commerce market.
The report also points to a rationalisation in discounting strategies, with average discount rates falling from 44% in 2024 to 34% in 2025. This reflects a broader shift towards profitability and sustainable growth, as marketplaces balance aggressive promotions with operational effectiveness. The data also shows a significant reduction in returns and reverse logistics, with Amazon halving return rates to 8% and RTOs (Return to Origin) down to 2%, setting a new benchmark for post-sale processes.
“India’s e-commerce landscape is evolving rapidly, with a clear shift towards operational excellence rather than discount-driven growth,” said Farooq Adam, Co-founder of Fynd. “The ability to execute fast, efficient fulfilment through omnichannel strategies, backed by disciplined pricing and trust-driven payments, is now the key to sustainable growth. The brands that will succeed in this new era are those that understand the regional diversity of the market and respond with faster fulfilment and tailored offerings for smaller cities, while building prepaid trust.”
The report positions India’s e-commerce market within a global context of “cautious optimism,” reflecting broader trends in mature markets, where consumers are becoming more selective, prioritising essential and value-led purchases. However, India stands out due to its unique combination of affordability, rapid digital adoption, and regional diversity, positioning it as one of the most dynamic e-commerce markets in the world.
Looking ahead, the report underscores the importance of agility, omnichannel readiness, and precise consumer segmentation for retailers seeking to capitalise on the next phase of growth. As the market matures, brands will need to move beyond peak-season spikes, focusing on delivering consistent value and operational efficiency year-round to sustain growth in a highly competitive, digital-first retail environment.