A report by Ecom Express and ISB highlights the growing trend of online shopping in tier III cities in India, with cities like Lucknow and Jaipur leading the way. The study also revealed that emerging tier III cities such as Port Blair, Salur, Kakching, Nagaur, Kondapi, Panchkula, and Berhampur are experiencing a surge in online shopping activities.
The report indicates that approximately 70% of online purchases in these regions consist of clothing, fashion accessories, skincare, and makeup products. Cash on delivery (CoD) payment options have gained popularity among these shoppers.
Online shopping activity is on the rise in smaller towns, with Port Blair’s online shopping activity being 1/20th of Delhi’s. Furthermore, the survey shows variations in shopping preferences, such as Gurugram having three times more purchases of top wear.
Avik Sarkar, Lead Researcher at ISB Institute of Data Science, emphasized the exponential growth of e-commerce, especially in smaller Indian cities. He said, “Ecommerce is growing at an exponential rate, with a notable surge in demand from smaller cities in India. Combine this with the widespread penetration of the internet across our geography, and infuse this ecosystem with the convenience of digital payments, and the stage for unprecedented success in this sector is set.”
Growth hotspots like Kolhapur, Jammu, and Azamgarh contribute significantly to the volume of online orders, indicating that online shopping is expanding rapidly, particularly in areas with limited physical retail outlets.
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Dipanjan Banerjee, Chief Business Officer at Ecom Express, highlighted the significance of the report in guiding online sellers and direct-to-consumer. He stated, “This report signifies the strengths needed by online sellers and D2C brands to reach growing online consumers beyond typical metros as well as successful vectors such as CoD handling, data-sciences-led consumer insights, and categories that are evolving across growing hotspots in the country to make impactful expansion plan by retailers and online sellers.”
