Festive sales 2026: decoding discounts and behavioural nudges behind e-commerce deals

The annual Indian festive shopping window kicked off with record claims across major e-commerce platforms, with the Amazon Great Indian Festival starting on 8 October and Flipkart's Big Billion Days launching its early access on the same day before opening on 9 October.

“One out of two customers opted for Equated Monthly Instalment financing,” according to Amazon Pay, while Flipkart noted that one in three shoppers selected No-Cost Equated Monthly Instalment (EMI) options.

To make the most of festival sales, shoppers have three types of offers: card-linked instant discounts, credit-linked payment offers, and upfront price cuts. Platforms feature card-linked incentives, such as Amazon’s 10% instant discount on SBI credit cards and Flipkart’s 10% instant savings on Axis and ICICI cards, as well as trade-in exchange bonuses. In addition, No-Cost EMI arrangements offer merchant-funded interest subsidies that reduce the immediate invoice amount.

That said, distinguishing a genuine markdown requires close examination of base prices. Mint’s festive price tracker also showed bargains, such as the Apple iPhone 17e 256 GB on Amazon, which saw a price drop from ₹98,900 on 24 September down to ₹71,999 on sale day, and the Apple 2026 MacBook Air 15-inch (16GB) with M5 Chip on Flipkart, which dropped from ₹1,79,000 to ₹1,59,990. While these sales offer great deals and deep discounts, planners and behavioural experts urge caution, as sale seasons tend to encourage spending beyond planned budgets.

Neuroscience behind the festive nudge

Behind the price-drop banners and flash sales is a framework of behavioural economics designed to capitalize on human psychology. Biju Dominic, chief evangelist at Fractal Analytics and also the author of MicroStimuli: The New Science of Persuasion, points out that platforms actively exploit the contrast principle and scarcity to drive immediate action.

"The most obvious tactic from a festive sale point of view is creating that limited offer or limited period, which is more of a scarcity play," Dominic explained. "They try to create a feeling that this offer is available for a very limited time, so if I don't utilize it now, then this will go away, and loss aversion clearly steps in," he added that visual design plays a central role in establishing price anchors.

"Showing an original price cut off acts as an anchor, and then showing a new lower price relies on the contrast principle as a visual cue that sets in the impression of a deep discount," he noted.

This psychological pressure is further intensified by neuroscience and social proof. "The searches are all about discovery, and when you see something, there is a whole dopamine release that happens. Dopamine is the biggest driver of your behaviour, and searching and looking for those discounts and discovering it is huge excitement for people," he said.

Platforms showcase large crowd metrics to trigger social proof. "Marketing showing images of large crowds sends a message that everyone is taking advantage of this, and you will be left alone," Dominic concluded.

Price anchoring and discounting

Vivek S.G., Sebi-Registered Investment Advisor and founder of Wealth Crafts, warns that artificial price inflation is one of the most widespread traps during sale periods. "The most common trap is to artificially inflate the selling price or the quoted price, and then offer a bigger discount within," Vivek explained. “We have seen some brands exist purely with a higher Maximum Retail Price (MRP) so that they can show a huge amount, 70-80% discount.”

To avoid falling for inflated discount badges, consumers must verify price histories rather than taking advertised reductions at face value. "One should check what the price history has been, as there are features and websites where you can check the price history for the last few months," Vivek advised. "Then one gets to know that the price indeed increased during the sale time itself, and there were lower prices available earlier, so it may not be the right time now."

When looking for evidence of this during the ongoing festive sale, we found the following. On Amazon, the Apple 2026 MacBook Air 15-inch Laptop with M5 chip (16GB Memory) rose from a pre-sale price of ₹1,66,990 on 24 September to ₹2,00,490 on 8 October, after a 7% discount. Explaining this, the Amazon India spokesperson said, “Amazon operates as an online marketplace where independent third-party sellers list and sell their products. We require sellers to list products that comply with applicable Indian laws and Amazon policies.” A similar price fluctuation was also seen on the Flipkart platform. Queries sent to Flipkart were not answered till press time.

To spot these artificial markups, shoppers can utilize tools such as a price history feature or independent third-party price tracking tools, which allow buyers to evaluate price movements over the last few months. It would also help to identify your purchase early and track price movements to ensure you walk away with a steep discount.

Vivek also recommends using independent third-party price comparison tools before checking out. "There are third-party websites that pull pricing details from multiple shopping sites and compare the prices for you, giving a good overview of where the lowest price is available, so one should look at those comparative websites before buying."

'No-Cost' EMI and credit traps

There is now a push toward structured credit that users need to approach with caution. Vivek cautions that consumers frequently conflate no-cost financing with zero financial burden. "The temptation to take a loan or buy things on EMI can be so strong because you get the product instantly, but there is a huge difference between low-cost and no-cost EMI," Vivek highlights. "A no-interest EMI may not mean that there is no processing fee, and the processing fee can actually become the interest payments."

"One should not fall for low- or no-interest options without checking if there is a non-refundable processing fee attached," Vivek warned. Additionally, short-term deferred schemes like 'Pay in 3' or co-branded credit card debt reduce immediate checkout friction, but they can also accumulate recurring monthly liabilities.

Fighting Fomo and sticking to the plan

Experts call for strict discipline, pre-sale preparation, and avoidance of fear-of-missing-out (Fomo) purchases. Vivek stresses that buyers must enter sales with a shopping list rather than browsing out of boredom or social pressure.

"Knowing in advance what you need, planning your purchases properly, and not falling for temptation to buy something is very important," Vivek said. He notes that mindless scrolling on e-commerce applications is the single biggest trigger for unnecessary spending.

"We see people scrolling on online shopping sites just looking for deals, hoping to get a good deal even if they do not actually need something, like replacing a phone that is perfectly fine just because you are getting a good deal."

Festive sales offer genuine value only when used for planned purchases. By watching out for psychological triggers, verifying historical price trends, and avoiding EMI stacking, consumers can make the best of seasonal discounts.