Usually, during marketplace sales, direct-to-consumer (D2C) brands see a dip in order volumes on their websites.
However, this year, brands on the GoKwik network saw a reverse trend. There was a massive surge in order volumes on their platforms during the peak marketplace sale period this year, a unique turnaround in the ecommerce industry from the past few years.
During the marketplace sale period last year, brands on the network saw a 7 per cent decrease in order volumes and a marginal jump of 6.5 per cen in the gross merchandise value (GMV). Brands would, therefore, prefer to hold their sales before or after marketplace sales.
This year, however, brands took a bold bet and held their own sales during the marketplace sale period. The bet paid off as order volume and GMV surged by 43 per cent and 52 per cent, respectively, around the same time as marketplaces also grew their order volumes.
Chirag Taneja, Co-Founder and CEO, GoKwik, said, “This reversal in trend is a sign of natural progression of the eCommerce market. It means that the market is deepening. It shows that D2C is rapidly gaining popularity among shoppers, who are looking out for the best offers and shopping experience.”
Taneja, however, added that the trend reversal did not imply that shoppers preferred D2C over the marketplace or vice versa.
“Rather, people are more willing to shop online, be it on marketplaces or on D2C websites, especially if the brands are well established. With better customer experience, D2C is becoming equally popular during festive season shopping,” Taneja added.
The festive season sees a massive uptick in sales as shoppers are high on the intent of making purchases during this time.
Traditionally, marketplaces have been able to tap into the potential in the festive season by launching massive sales. D2C brands had shied away from launching sales during this time for fear of high return to origin (RTO) orders and customer acquisition costs.
However, not all brands in the same category get the same traction during marketplace sales. Armed with GoKwik’s suite of solutions to reduce RTOs and improve GMV, many digital-first brands have taken the challenge head-on.
This trend will likely continue at a larger scale in December as well. Last year, the Black Friday Sale weekend (celebrated on the last Friday of November) saw a surge in sales for D2C brands. This trend may also continue this year.
