56 percent of online sellers are already using AI tools to grow their business: Report

Based on a survey of sellers across Bharat on the Snapdeal platform, the report highlights that artificial intelligence is no longer limited to large enterprises or digital-first brands. Instead, AI adoption is steadily becoming mainstream among Indian online sellers, with 56% of respondents already using AI-powered tools in some form to enhance business operations.

The report examines key trends shaping India’s digital commerce landscape, including AI adoption, marketplace diversification, seller profitability pressures, consumer behaviour shifts, and increasing dependence on online channels.

AI adoption expands beyond large businesses

“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—driven by rising internet penetration and increasing comfort with online transactions—continues to define the next phase of Indian e-commerce,” said Achint Setia, CEO of Snapdeal.

Among sellers already using AI, the most common application is product listing and content creation, cited by 43% of respondents. Sellers are increasingly leveraging AI tools to generate product descriptions, improve cataloguing efficiency, optimise listings, and enhance visibility across marketplaces.

Online commerce becomes central to business models

The report also underscores the growing importance of digital channels in seller revenues. Nearly 46% of respondents said that more than three-fourths of their total sales now come from online platforms, indicating that e-commerce has become the primary route to market for a large segment of sellers.

India’s seller ecosystem also remains strongly manufacturing-led, with 66% of respondents identifying themselves as manufacturers selling directly online. This shift highlights how marketplaces are enabling MSMEs and entrepreneurs to reach national customers without relying heavily on traditional distribution networks.

Bharat markets drive next phase of growth

Smaller cities and towns continue to emerge as the strongest growth engine for India’s digital commerce sector. About 51% of sellers reported that demand from Tier-2, Tier-3, and smaller markets is growing faster than that from metro and Tier-1 cities.

This trend reflects the expanding reach of e-commerce across Bharat, supported by improved logistics, wider internet penetration, affordable smartphones, digital payment adoption, and increasing consumer confidence in online shopping.

Value remains the key driver of online shopping

The report further highlights that value continues to dominate consumer behaviour in India’s online marketplace. Nearly 49% of sellers said customers primarily prioritise the best prices and discounts, while 38% ranked product quality as the second most important factor.

This value-driven behaviour is also reflected in pricing trends, with 66% of sellers operating in categories where the average order value is below ₹500, underscoring the scale of India’s affordability-focused digital commerce segment.