New Delhi: Artificial intelligence is rapidly becoming a mainstream business tool for India’s online seller community, with 56% of sellers already using AI-powered solutions to improve operations, according to the latest Snapdeal Bharat Seller Report 2026.
Based on a survey of sellers across Bharat who sell on the platform, the report highlights the growing digital maturity of India’s online merchant ecosystem, alongside the continued rise of smaller cities as the growth engine of e-commerce and the enduring importance of value-driven shopping behaviour.
The report reveals that AI adoption is no longer limited to large enterprises or digitally native brands. Instead, small businesses, manufacturers, and traditional sellers are increasingly leveraging AI to streamline operations and improve marketplace performance.
Commenting on the findings, Achint Setia, CEO, Snapdeal, said, “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 on the back of rising internet penetration and growing comfort in online transactions among consumers continue to define the next phase of Indian e-commerce.”
Among sellers already using AI tools, 43% identified product listings and content creation as the primary use case, with businesses using AI to generate product descriptions, improve catalogue management, optimise listings, and enhance product discoverability on marketplaces.
Online Commerce Becomes Core to Seller Businesses
The report underscores the growing importance of digital commerce as a primary sales channel for Indian businesses. Nearly 46% of respondents said more than three-fourths of their overall sales now come from online channels, indicating how deeply e-commerce has become integrated into seller business models.
India’s online seller ecosystem also continues to be strongly driven by manufacturers. Around 66% of surveyed sellers identified themselves as manufacturers selling directly to consumers online, highlighting how digital marketplaces are enabling MSMEs and entrepreneurs to bypass traditional distribution networks and access nationwide demand.
Bharat Markets Continue to Power Growth
The report reinforces the growing significance of non-metro markets in India’s digital commerce landscape. According to the findings, 51% of sellers reported faster customer growth from Tier-2, Tier-3, and smaller towns compared to metro and Tier-1 cities.
The trend reflects increasing internet penetration, improved logistics infrastructure, wider adoption of digital payments, and greater consumer confidence in online shopping across Bharat markets.
As e-commerce platforms continue expanding their reach, smaller cities are emerging as critical contributors to customer acquisition and transaction growth, creating new opportunities for sellers across categories.
Value Commerce Remains Dominant
Despite rising digital adoption, Indian consumers continue to prioritise value while shopping online. Nearly 49% of sellers said customers primarily focus on obtaining the best prices and discounts, while 38% identified product quality as the second most important purchase consideration.
The findings further reveal the scale of India’s value-conscious consumption economy. Approximately 66% of surveyed sellers operate in categories where the average order value is below ₹500, demonstrating the continued strength of affordable products and budget-conscious purchasing behaviour.
The report suggests that as AI adoption expands, Bharat markets deepen their contribution to growth, and value-driven consumption remains resilient, India’s e-commerce ecosystem is entering a new phase characterised by greater technology integration, broader market participation, and increasing opportunities for MSMEs and manufacturers
