Flipkart's grocery services temporarily halted: Here's why
What's the story
Flipkart, India's e-commerce giant, had temporarily suspended taking grocery orders due to an overwhelming response during its annual Big Billion Days festive sale.
Grocery shoppers found both the app and website displaying a banner asking them to "come back tomorrow" after the service experienced an outage on October 10. However, the grocery services were later resumed.
The Big Billion Days sale event is expected to generate a whopping $9.7 billion to $11 billion in gross merchandise value.
Twitter Post
'Please come back tomorrow'
Walmart’s Flipkart has suspended taking grocery orders in India days after doling out big discounts during its sale period! pic.twitter.com/Gsld7BTa3V
— Aditya Kalra (@adityakalra) October 10, 2023
Details
E-commerce festive sales surge in India
This festive sales period has seen Indian e-commerce platforms enjoy a 25-30% increase in sales by value compared to last year.
It's a crucial time for online sales in India, with the biggest discounts and highest business generated.
Myntra's Big Fashion Festival also launched around the same time, while Snapdeal's Toofani Sale-Festive Dhamaka runs from October 8 to 15. Analysts predict a 15-16% rise in sales from a year earlier.
What Next?
Amazon introduces Prime Shopping Edition membership
Amazon has also joined the festive sale season by launching a shopping-only version of its Prime membership called Prime Shopping Edition.
For just Rs. 399 per year, this new membership offers limited shopping-related perks like free shipping and one-day deliveries.
This move mirrors Flipkart's recently introduced membership program, Flipkart VIP, which costs. Rs 499 per year and provides benefits on delivery and returns in select locations.
Insights
Impact of festive sales on e-commerce platforms
The sales surge during the festive season puts a ton of pressure on e-commerce platforms like Flipkart and Amazon to manage inventory, logistics, and customer service efficiently.
The temporary suspension of Flipkart Grocery services highlights the challenges faced by these platforms in handling increased demand during this period.
As e-commerce continues to grow in India, companies will need to invest in infrastructure and technology to ensure smooth operations during peak sales events.