AI powers e-commerce boom as summer sales drive bigger baskets and higher spends

MUMBAI: India’s summer sale season has revealed a new reality for e-commerce: artificial intelligence is no longer just answering customer queries, it is directly driving revenue.

According to insights from the ecosystem of solutions operated by Unicommerce, this year’s sale season was shaped by three major trends: AI-powered customer engagement, rising consumer spending and sustained demand throughout the promotional period.

The sales cycle included major events such as Amazon’s Great Summer Sale, overlapping campaigns from Flipkart, followed by the End of Reason Sale from Myntra and multiple category-led promotions by online retailers and D2C brands.

A standout trend was the growing commercial role of AI. Brands using Catalyst, the AI voice agent offered by Convertway, recovered more than Rs 1.3 crore worth of abandoned-cart orders during the sale period. The AI system reached over 1.15 lakh shoppers through voice interactions covering abandoned-cart recovery, cash-on-delivery confirmations, address verification and customer engagement initiatives, generating a reported return on investment of more than 15 times.

AI also played an increasingly important role in fulfilment and marketing operations. Nearly 1,000 automated AI-powered messaging campaigns reached more than 34 lakh consumers, helping brands improve conversions while streamlining customer communication during peak shopping periods.

Consumers, meanwhile, appeared willing to spend more. Transaction data processed through Uniware showed average order values rising by more than 25 per cent in the Home Decor & Furnishings category and over 16 per cent in FMCG, indicating growing confidence across both discretionary and everyday purchases.

Despite a later start to the summer sale calendar compared with last year, demand remained strong throughout the season. Comparing equivalent sale weeks year-on-year, order volumes grew 29 per cent in the opening week, surged 41 per cent in week two and continued posting double-digit gains over the following weeks, pointing to sustained shopping momentum rather than short-lived spikes.

Quick commerce also maintained its rapid ascent, with order volumes increasing by more than 60 per cent year-on-year. Nutraceuticals & Supplements and Home Decor & Furnishings accounted for the largest share of quick-commerce orders, while Beauty & Personal Care recorded the strongest growth, followed by Health & Pharma and Fashion & Accessories.

Operational efficiency emerged as another bright spot. Analysis by Shipway found that brands reduced return-to-origin rates to 17 per cent during the sale period, down from around 25 per cent a year earlier. The improvement reflects stronger order validation, better delivery planning and more effective customer communication.

Among states and union territories, Mizoram, Chandigarh, Puducherry, Goa and Kerala recorded the lowest return-to-origin rates, indicating stronger fulfilment performance and fewer delivery-related losses.

As the industry prepares for the next major shopping events, including Amazon’s Prime Day, the summer sale season suggests that the future of e-commerce will be shaped less by discounts alone and more by intelligent automation, premium spending and operational precision.