Amidst a surge in post-pandemic spending and economic activity, e-commerce companies in India are preparing for the festive season by expanding their temporary workforce significantly. With an anticipated increase in ‘revenge shopping’, this festive period is projected to witness a substantial rise in logistics and delivery operations.

Scaling Up Workforce and Pay Scales

Starting from October and extending through December, companies are set to augment their workforce by 20% compared to the existing base. Additionally, pay scales are expected to rise by 8%-10% compared to the previous year. According to human resources analytics firm TeamLease, India is projected to have 372 million online shoppers by the end of 2022.

TeamLease anticipates the addition of approximately 500,000 additional jobs during India’s festive season. In sectors like FMCG, the demand for Feet-on-Street salespeople (FOS) is expected to be particularly high.

Flagship Sales and Job Creation

E-commerce giants like Flipkart and Amazon are gearing up for their flagship sales events, namely Flipkart’s Big Billion Days and Amazon’s Great Indian Festival. In 2022, Flipkart aims to generate 50,000 new jobs across its centers. The company is actively recruiting, with approximately 400 new employees hired daily at its Haringhata warehouse in preparation for the upcoming flagship sale.

Myntra, a leading retailer in India, is also preparing for its ‘Big Fashion Festival’, ensuring a seamless consumer experience by enhancing its last-mile delivery infrastructure.

Revenue Surge and Market Share

Festive period sales contribute significantly to the revenue of e-commerce companies. According to a report by wealth management firm Bernstein, the gross merchandise value (GMV) of e-commerce firms during October sales amounted to $9.3 billion in 2021, marking a 26% year-on-year increase. Flipkart dominated the festival market share with 62%, while Amazon held 27%.

Broadening Hiring Horizons

Both large and small e-commerce companies are ramping up hiring efforts and expanding operations. Retail stores are also witnessing increased activity and are expected to join the hiring spree.

The New Shop, an omnichannel e-commerce company primarily operating in North and West India, aims to expand its presence to 1,000 stores in India by 2025. The company, specializing in 24-hour convenience stores selling FMCG products, is actively recruiting to support its growth plans.

Focusing on Tier 2 and Tier 3 Cities

Companies like The New Shop are targeting Tier 2 and Tier 3 cities for expansion and employment opportunities. Expectations include hiring over 200 employees in states like Uttar Pradesh, Haryana, and Madhya Pradesh.

Long-Term Employment Prospects

While temporary hiring surges during the festive season, there’s a call for e-commerce companies to absorb these workers into permanent positions post-festivities. This move could play a significant role in reducing India’s unemployment rate, which stood at 7% as of May 2022, down from a peak of 23.5% in April 2020 according to a Statista report. The post-pandemic great Indian festivals are anticipated to further lower this statistic.