MUMBAI: India’s online sellers are no longer just chasing clicks, they’re increasingly letting algorithms lend a hand. Artificial intelligence is steadily becoming part of the everyday toolkit for Indian e-commerce businesses, according to the latest Snapdeal Bharat Seller Report 2026, which paints a picture of a seller ecosystem that is becoming more technology-driven, manufacturing-led and deeply attuned to value-conscious consumers.
The report, based on a survey of sellers across Bharat who operate on the platform, found that 56 per cent of respondents are already using AI-powered tools in some capacity to streamline operations and improve business performance. Far from being limited to large corporations or digital-native brands, AI is now finding its way into the workflows of MSMEs and traditional businesses.
Among sellers using AI, product listings and content creation emerged as the most popular application, cited by 43 per cent of respondents. From generating product descriptions and improving catalogue management to boosting discoverability on marketplaces, AI is increasingly helping sellers do more with less.
But the story is bigger than technology. The findings reveal just how central digital commerce has become to business growth across India. Nearly 46 per cent of surveyed sellers said that more than three-quarters of their total sales now come through online channels, highlighting the extent to which e-commerce has shifted from an additional sales avenue to a primary route to market.
The report also underscores the rise of India’s manufacturing-first seller economy. About 66 per cent of respondents identified themselves as manufacturers selling directly to consumers online, signalling how marketplaces are helping small businesses, entrepreneurs and MSMEs bypass traditional distribution networks and access customers nationwide.
Meanwhile, the next wave of growth is increasingly coming from beyond the metros. More than half of surveyed sellers 51 per cent said demand from Tier-2, Tier-3 and smaller towns is growing faster than from metro and Tier-1 markets. The trend reflects the continued expansion of e-commerce across Bharat, fuelled by rising internet penetration, affordable smartphones, improved logistics and greater trust in digital transactions.
The report also highlights one factor that continues to define Indian online shopping behaviour, value. Nearly 49 per cent of sellers said customers primarily prioritise discounts and competitive pricing when shopping online. Product quality followed closely, with 38 per cent identifying it as the second most important consideration.
That value-driven mindset is reflected in transaction sizes as well. Around 66 per cent of sellers operate in categories where the average order value is below Rs 500, underlining the scale of India’s affordability-focused consumption economy.
Taken together, the findings suggest that India’s e-commerce engine is being powered by a combination of technology adoption, manufacturing entrepreneurship and a vast base of price-conscious consumers. And as AI tools become as common as inventory sheets, the country’s online marketplace may be entering its most digitally mature phase yet.