5 Challenges During the Festive Season for D2C Brands – and How to Overcome Them

The festive season in India is a golden window for D2C brands. From Diwali to Christmas, consumer spending surges, creating an unmatched opportunity for growth. But with great opportunity comes great pressure. Inventory headaches, skyrocketing ad costs, delayed deliveries — the list goes on.

If you’re a D2C brand gearing up for this high-stakes season, you’re not alone. Here are five real challenges founders face during the festive season — and how you can tackle them smartly.

But before we get into the details of it, are you a business owner who is looking for working capital to grow your business? Then you are at the right place. Velocity offers working capital up to ₹5 Crore specifically for digital-first companies. Plus, there’s no need to give up equity or secure collateral – it’s a simpler way to access the funds you need. With over ₹800 crore disbursed and more than 1,000 brands supported, Velocity has a proven track record of helping businesses like yours achieve growth through accessible financing. Find out more about our solutions here.

1. Inventory Planning Becomes a Balancing Act

During the festive season, inventory can make or break your sales. Stock too little and you risk missing out on demand. Stock too much and you’re sitting on dead capital after the season ends.

The fix?
Use sales data from past festive seasons to project demand — but don’t stop there. Look at what channels are driving growth. Is your website seeing more traction, or is it marketplaces and quick commerce platforms?

Layer this with financing designed for working capital needs. With flexible business loans, you can stock up without compromising cash flow. Platforms like Velocity offer capital tied to your revenue — faster approvals, no equity dilution.

2. Delivery Delays and Poor CX

The excitement of a festive purchase can turn into frustration if a product doesn’t arrive on time. With logistics networks stretched thin, delayed shipments can lead to negative reviews, returns, and lost loyalty.

The fix?
Invest in omnichannel solutions that connect your order management, inventory, and logistics systems. Tools like Shiprocket, ClickPost, and Shipfast (Velocity’s logistics product) help D2C brands offer faster delivery and better tracking.

And don’t ignore WhatsApp order tracking or real-time delivery updates. Festive customers are impatient — and rightly so.

3. Ad Costs Skyrocket, Returns Drop

Performance marketing during the festive season is brutal. CPCs go up, ROAS goes down, and your margins take a hit — especially if you’re competing with large legacy brands.

The fix?
First, don’t rely on just one channel. An omnichannel strategy ensures you’re not over-reliant on Instagram or Meta Ads. Explore email flows, influencer-led gifting, affiliate programs, and even physical activations.

Second, plan early. Brands that book ad inventory or negotiate influencer deals in advance often get better rates and stronger engagement.

And if capital is a constraint, consider financing for marketing spend. Don’t let tight budgets limit your reach when the whole country is shopping.

4. Your Tech Stack Cracks Under Pressure

Website crashes, payment failures, slow checkouts — technical glitches can cost lakhs in lost revenue during peak hours.

The fix?
Run stress tests in advance. Is your site built to handle 5x traffic? Are your plugins and payment gateways optimized?

Beyond tech, ensure your support channels are responsive. Live chat, chatbot assistants, and even AI-powered conversational commerce can help you close more carts.

5. You’re Not Selling Where Your Customer Is

In 2025, selling only on your website is limiting. Your customers might prefer shopping via WhatsApp, marketplaces, pop-ups, or even live commerce.

The fix?
Think omnichannel retail — not just omnichannel marketing. Set up presence on multiple platforms but keep your operations streamlined. Centralize inventory and sync orders through an OMS (order management system).

Customers today don’t think in terms of channels — they just want convenience. Make sure you’re showing up where they are.

Final Thoughts

The festive season is no doubt a high-stakes game for D2C brands. But with the right tools — and the right partners — you can turn these challenges into growth levers.

From business loans for inventory and marketing to omnichannel solutions for seamless logistics and selling, success lies in planning early and moving fast.

Ready to power up your festive season? Click here to start today.