# Festive sales face discount squeeze

> E-commerce platforms must offer deeper discounts to match last year's festive prices as product costs rise.
- Title: Festive sales face discount squeeze · Financialexpress
- Summary: E-commerce platforms must offer deeper discounts to match last year's festive prices as product costs rise. Online festive sales are expected to grow 25-29%…
- Keywords: online festive sales, e-commerce platforms, product costs, discounts, gst cuts, festive season, business, money, news, Festive, sales, face
- Source: Financialexpress — https://financialexpress.com/business/industry-festive-sales-face-a-discount-squeeze-4356932
- Author: Anees Hussain
- Published: 2026-10-08T17:44:00+00:00
- Read time: 1 min
- Topics: online festive sales, e-commerce platforms, product costs, discounts, gst cuts, festive season, business, money, news
## Online festive sales growth expected
Online festive sales are likely to grow strongly this year but through higher volumes and cheaper products rather than deep price cuts.
## Average selling prices rise
Average selling prices across top seven e-commerce categories are now above last year's October festive sale levels.
## Price declines needed for last year's levels
Platforms would need to offer deeper discounts to bring prices back to last year's festive levels: laptops 29%, footwear 12%, ACs 10%, smartphones 9%, clothing 5% and washing machines 4%.
## GST cuts last year boosted prices
Last year's festive season benefited from GST cuts that reduced prices by about 7.8% before discounts.
## Higher input costs this year
Higher input costs, freight expenses following the West Asia conflict and a weaker rupee have pushed up product prices this year.
## Smartphone sales growth slows
Datum expects festive smartphone sales to grow just 6% this year, against 26% last year, as higher prices and limited consumer spending power constrain demand.
## Key takeaway

Online festive sales are expected to grow 25-29% this year but through higher volumes and cheaper products, not deeper discounts.