GoKwik Network Reports 52% Rise In Sales During Marketplace Trends
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GoKwik Network Reports 52% Rise In Sales During Marketplace Trends

GoKwik Network Reports 52% Rise In Sales During Marketplace Trends

Direct-to-consumer (D2C) brands experience a decline in order volumes on their websites during marketplace sales events like Flipkart’s Big Billion Days. Surprisingly, this year marked a reversal of that trend for brands on the GoKwik network. Instead of a downturn, these brands witnessed an upswing in order volumes on their platforms during the peak period of the marketplace sale, a notable shift in the eCommerce industry compared to previous years.

In the corresponding period of the marketplace sale last year, brands associated with the GoKwik network experienced a 7 per cent decline in order volumes, coupled with a slight increase of 6.5 per cent in the gross merchandise value (GMV). Consequently, brands tend to favour scheduling their sales events either before or after the marketplace sales to optimise their performance.

This year, however, brands took a bold bet and held their 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. During the 7-day marketplace sales, the GMV for D2C brands on the GoKwik network grew 1.5X in 2023 over the year before.

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 best offers and shopping experience.”

He added that the trend reversal did not imply that shoppers preferred D2C over marketplace or vice versa.

“Rather, people are more willing to shop online, be it on marketplaces or 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 witnesses a surge in sales, driven by heightened consumer intent to make purchases. Marketplaces have effectively harnessed this potential by initiating large-scale sales events. However, direct-to-consumer (D2C) brands had refrained from projecting sales during this period due to concerns about elevated return to origin (RTO) orders and increased customer acquisition costs.

Nevertheless, not every brand within the same category experiences equal traction during marketplace sales. Equipped with GoKwik’s range of solutions aimed at minimising return to origin (RTO) rates and enhancing gross merchandise value (GMV), numerous digitally native brands have courageously confronted this challenge.

This trend is likely to continue at a larger scale in December as well. Last year, the Black Friday Sale weekend saw a surge in sales for D2C brands. This trend may also continue this year.

GoKwik’s set of solutions empowers brands to implement Cash on Delivery (COD), effectively mitigating the risk of Return to Origin (RTO). It provides the capability for brands to extend COD services across various PIN codes while implementing safeguards against RTO.

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