E-commerce platforms dial back discounts as mid-year sales growth moderates

Quick commerce is meanwhile gaining a larger share of last-minute festive purchases

E-commerce platforms are likely to dial back deep discounts during the upcoming mid-year sales as they face pressure to improve profitability, while consumer spending remains cautious amid higher costs. Industry analysts expect growth during the sales events to moderate to around 8-10 per cent this year, even as demand remains healthy across the broader online retail market.“Companies are under pressure to show profitability... they are not in a phase where they can spend a lot in discounting,” said Satish Meena, analyst at Datum Intelligence. He added that discounts are unlikely to disappear but will become more targeted and category-specific as platforms assess whether deeper offers can meaningfully drive demand.The mid-year sales, coming ahead of Raksha Bandhan and the larger festive shopping season, are increasingly being viewed as a precursor to the marquee Diwali sales. However, analysts caution against reading the slower growth in these events as a broader slowdown in e-commerce demand.According to Meena, the upcoming sales could see growth of only 8-10 per cent over last year, compared with the 20-25 per cent growth typically expected from such events. However, he said this should not be extrapolated to the overall ecommerce market, which continues to see healthy demand across categories.“We are seeing a demand across categories. It’s not the business spending in the market. Just the sales timing was tricky,” Meena said.Smartphone SalesHigher costs are also affecting high-value categories such as smartphones and laptops, where consumers could defer purchases in anticipation of better discounts or new product launches during Diwali. Smartphone shipments, for instance, could decline in volume even as the value of sales remains relatively resilient because of higher prices, Meena said.Consumer caution is also weighing on the near-term pace of spending. “Consumers are most certainly more circumspect in their spending today,” said brand strategist Harish Bijoor, adding that higher petroleum prices have cascaded into costs across food, clothing and shelter.Q-comm GrowthQuick commerce is meanwhile gaining a larger share of last-minute festive purchases, particularly toys, gifts, stationery, home decor, small appliances and electronics, Meena said. Such categories are increasingly driven by delivery speed rather than discovery, bringing quick-commerce platforms into direct competition with traditional ecommerce marketplaces.Despite the softer mid-year numbers, analysts expect spending to pick up during the main festive season, when consumers have planned purchases and platforms are likely to deploy more targeted discounts. Meena said the mid-year events therefore provide only a limited read on festive demand, as consumers may be deliberately holding back purchases for larger Diwali offers.Published on August 14, 2026