Non-metro cities leading in orders on e-commerce platforms in India: Report

Non-metro cities are leading the pack in India when it comes to growth in orders on e-commerce platforms, with at least 60 per cent of online orders coming from tier 2 cities and smaller towns, a report showed on Friday.

Online shopping remains the preferred mode for 75 per cent of consumers.

With robust growth expected in e-commerce this festive season, the report by third-party logistics service provider Delhivery said while metro cities like Bengaluru, Hyderabad and Mumbai, etc experience the highest orders, the largest growth in orders will come from tier II cities led by Gurgaon (36.8 per cent), Raipur (32.8 per cent), Nagpur (20.9 per cent), Jaipur (20.60 per cent) and others.

About 81 per cent of consumers use their smartphones or mobile devices to make purchases and recommendations from promotions/influencers are a deciding factor for 84 per cent consumers, mentioned the report.

Interestingly, electronics are gradually replacing dry fruits as the favoured gift during festivals whether for individuals or collective/corporate gifting.

“With high order volume growth, there is also a surge in the rate of returns making a smooth return management experience a key metric for the performance of an online retailer,” the report noted.

Nearly four out of 10 cash on delivery (CoD), return to origin (RTO) are from apparels and accessories (39.3 per cent), followed by beauty products and personal care (14.5 per cent).

These categories comprise over half of total CoD RTOs and highlight the need for a targeted returns reduction strategy for brands in this space, said the report.

According to latest estimates by the Confederation of All India Traders (CAIT), festive sales of over Rs 4 lakh crore is expected due to the extended period of the festival season this year, which began with Raksha Bandhan on August 19 and will extend to November 15 on the day of Tulsi Vivah.

During this festive period, the business community across the country is fully prepared to meet consumer demands, and traders have stocked up adequately on all products.