AI goes mainstream as 56 per cent of Snapdeal sellers embrace tech

NEW DELHI: India’s online sellers are increasingly letting artificial intelligence do some of the heavy lifting, with more than half already using AI-powered tools to grow their businesses, according to the latest findings from the Snapdeal Bharat Seller Report 2026.

The study, released by Snapdeal, paints a picture of a rapidly evolving digital commerce ecosystem where technology adoption, manufacturing-led entrepreneurship and value-conscious consumer behaviour are reshaping how business is done online.

Among the survey’s standout findings, 56 per cent of sellers said they are already using AI tools in some form, signalling that the technology is moving beyond large corporations and finding a place among smaller businesses, manufacturers and traditional merchants.

For many sellers, AI’s biggest role is helping products get noticed. Around 43 per cent of AI users said they rely on the technology for product listings and content creation, using it to generate descriptions, improve catalogue management and boost product visibility across online marketplaces.

The report also highlights just how central e-commerce has become to seller operations. Nearly 46 per cent of respondents said more than three-quarters of their total sales now come through online channels, underlining the growing dependence on digital platforms as a primary route to customers.

India’s seller ecosystem, meanwhile, continues to have a strong manufacturing backbone. About 66 per cent of respondents identified themselves as manufacturers selling directly online, reflecting how marketplaces are helping MSMEs and small businesses reach consumers nationwide without relying heavily on traditional distribution networks.

Commenting on the findings, Snapdeal chief executive officer Achint Setia said the country’s online seller community is becoming increasingly sophisticated and technology-enabled.

“India’s online seller ecosystem is evolving rapidly. Sellers today are far more digitally mature, operationally agile, and increasingly technology-enabled. What is particularly interesting is that 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 e-commerce,” said Setia.

The report also reinforces the growing importance of Bharat markets in India’s e-commerce story. More than half of sellers, or 51 per cent, said demand from Tier-2, Tier-3 and smaller towns is growing faster than that from metro and Tier-1 cities.

The trend reflects the increasing reach of online commerce beyond major urban centres, supported by affordable smartphones, wider internet access, stronger logistics networks and growing trust in digital payments.

While technology is changing how sellers operate, consumers remain focused on getting the most for their money. Nearly 49 per cent of sellers said shoppers primarily look for the best prices and discounts when making purchases online. Product quality ranked second at 38 per cent, suggesting that while affordability remains king, quality is increasingly sharing the throne.

That value-first mindset is reflected in transaction sizes as well. Around 66 per cent of surveyed sellers operate in categories where the average order value is below Rs 500, highlighting the continued strength of India’s budget-conscious consumption economy.

Taken together, the findings suggest that India’s e-commerce growth story is increasingly being written outside the metros, powered by digitally savvy sellers, AI-enabled operations and consumers who continue to keep one eye firmly on value.