What’s The Online Shoppers Waiting For? 10 Points

Delhi

1. Shoppers Hit Pause Ahead of GST Reforms

   • India’s online shoppers are delaying big-ticket purchases like smartphones, TVs, and home appliances.

   • Reason: Anticipation of GST reform, which may cut prices by up to 10%.

2. Temporary Dip, Festive Surge Ahead

   • Analysts call it a short-term blip before a rebound.

   • E-commerce sales are expected to recover as clarity on India’s GST structure emerges and the festive season kicks in.

3. High Inventory, Deferred Demand

   • Retailers are managing excess inventory while categories like electronics and appliances see buyers waiting.

   • Platforms like Flipkart, Amazon, and others are engaging brands to prepare for a demand surge.

4. The New GST Reforms Explained

   • PM Narendra Modi announced the biggest tax reform since 2017.

   • GST likely to shift from four slabs (5%, 12%, 18%, 28%) to just two slabs (5% and 18%), plus a 40% tax for luxury & sin goods.

5. Electronics & Automobiles Get Cheaper

   • White goods like washing machines, ACs, refrigerators, and smartphones could see GST fall from 28% to 18%.

   • Small cars and motorcycles may also become more affordable.

6. September GST Council Meet: Key Decision Point

   • The GST Council, led by Nirmala Sitharaman, will meet on 3–4 September to finalise reforms.

   • Market sentiment hinges on this outcome.

7. Wait-and-Watch Mindset Among Buyers

   • Many are adopting a ‘delay strategy’ until the new tax regime is clear.

   • Example: A ₹1.2 lakh smartphone may get ₹12,000 cheaper post-reform, prompting buyers to wait till Diwali 2025.

8. Festive Season: The Real Game-Changer

   • E-commerce platforms earn nearly 25% of annual revenues during festive sales.

   • Regardless of GST reforms, festive buying remains non-negotiable for Indian families.

9. Industry Leaders See a Boost

   • Shiprocket’s CEO says festive demand is culturally driven and intact.

   • Flipkart Group calls GST rationalisation a structural reform that will boost consumption and India’s growth story.

10. Post-GST Surge Predictions

• Experts project a 15–20% spike in festive sales once reforms are rolled out.

• Categories like electronics, appliances, and quick-commerce platforms will be the biggest winners.