More than half of online sellers are using AI-powered tools to improve operations, while tier 2 and 3 markets continue to drive e-commerce growth, according to the Snapdeal Bharat Seller Report 2026
Artificial intelligence is rapidly moving beyond large corporations and digital-first brands, with 56 per cent of online sellers already using AI-powered tools to run and grow their businesses, according to the Snapdeal Bharat Seller Report 2026.
The survey of sellers on the platform found that AI adoption is gaining traction among small businesses and manufacturers, with product listings and content creation emerging as the most popular use case. About 43 per cent of AI users said they rely on the technology to generate product descriptions, improve cataloguing and optimise listings.
The findings come as online commerce becomes increasingly central to seller operations. Nearly 46 per cent of respondents said more than three-fourths of their sales now come through digital channels, underscoring the growing dependence of Indian businesses on e-commerce marketplaces.
The report also highlighted the continued rise of non-metro markets, with 51 per cent of sellers reporting faster customer growth from tier 2 and 3 cities than from metros. The trend reflects improving internet access, wider adoption of digital payments and expanding logistics networks across smaller towns.
India’s online seller base also remains heavily manufacturing-led. Two-thirds of surveyed sellers identified themselves as manufacturers selling directly to consumers, signalling how digital marketplaces are helping smaller producers bypass traditional distribution channels.
“AI adoption is now becoming visible even among MSMEs and traditional sellers. At the same time, the continued growth of Bharat markets on the back of rising internet penetration and growing comfort in online transactions among consumers continue to define the next phase of Indian ecommerce,” said Achint Setia, CEO, Snapdeal.
Despite the increasing sophistication of sellers, value remains the dominant driver of online shopping behaviour. Nearly half of respondents said customers primarily seek discounts and low prices, while 38 per cent pointed to product quality as the key purchase consideration. Reflecting that trend, 66 per cent of sellers operate in categories where average order values remain below Rs 500.
