eCommerce Surprises as D2C Brands Thrive Amid Marketplace Sales

In a surprising turn of events, direct-to-consumer (D2C) brands have witnessed a significant uptick in order volumes and gross merchandise value (GMV) during the core Marketplace sale period, marking a reverse trend in the eCommerce industry.

Traditionally, D2C brands experienced a dip in order volumes on their websites during major marketplace sales like the Big Billion Days by Flipkart. However, this year, brands on the GoKwik network saw a notable surge in order volumes during the peak marketplace sale period, a departure from the usual pattern.

Last year, during the same period, there was a 7% decrease in order volumes for GoKwik network brands, with only a marginal 6.5% increase in GMV. Typically, brands preferred holding their sales either before or after the marketplace sales due to this trend.

In a bold move, brands opted to run their own sales concurrently with the marketplace sale period this year. The gamble paid off, resulting in a remarkable 43% increase in order volumes and a 52% surge in GMV, a stark contrast to the previous year’s performance. During the 7-day marketplace sales, the GMV for D2C brands on the GoKwik network grew 1.5 times in 2023 compared to the previous year.

Chirag Taneja, Co-Founder and CEO of GoKwik, sees this reversal as a sign of the natural progression of the eCommerce market. He suggests that D2C is rapidly gaining popularity among shoppers seeking the best offers and shopping experiences during the festive season.

Taneja emphasizes that this trend doesn’t necessarily indicate a preference for D2C over marketplaces or vice versa. Instead, shoppers are increasingly willing to explore both options online, especially if the brands are well-established, providing a superior customer experience.

Historically, D2C brands avoided launching sales during festive seasons due to concerns about high return to origin (RTO) orders and customer acquisition costs. However, equipped with GoKwik’s solutions to reduce RTOs and improve GMV, many digital-first brands embraced the challenge.

This trend is expected to continue, with December likely seeing a surge in D2C sales, following the success seen during the Black Friday Sale weekend last year.

GoKwik, hosting over 1000 eCommerce brands in its network, including Lenskart, Neemans, Man Matters, and Mamaearth, provides intelligent COD solutions to reduce the risk of RTO and enables brands to offer COD across pin codes while safeguarding against returns.