Indian e-commerce segment sees 17% rise in order volume null
Finally some news to cheer on the economy front (or is it e-conomy?) Indian e-commerce space not only seems to have recovered from the impact of Covid-19 lockdown blues, but also witnessed an order volume growth of 17 per cent in June, according to a report by Unicommerce, an e-commerce solutions platform.
The report, titled ‘E-commerce Trends Report 2020’, went into the trends related to e-commerce growth, region-wise consumer demand, return orders, and D2C trends and how it affects the industry in the post-Covid-19 situation.
The report also pointed out that consumer buying patterns and preferences have changed significantly, with categories like health & pharmacy and FMCG & agriculture seeing a surge and exponential growth, with the rising number of first-time online shoppers.
In a development that should satisfy the e-tailers, the return rate has seen a dip of 10 to 30% depending on the category. “The reduced return can be attributed to the new safety norms, increasing demand for essential products, which are generally non-returnable,” the report said.
Kapil Makhija, CEO, Unicommerce said, “as the world is grappling with the effects of Covid-19, the e-commerce industry in India has seen a major boost since the beginning of this year. With this report, we wanted to throw light on the enormous growth opportunity that lies for the e-commerce industry in India. With changing consumer buying patterns and preferences, rise of new first time online users, increased focus on digitisation by retailers, brands opting for D2C model etc, we are confident the e-commerce industry will emerge as the most promising market across the globe with tremendous growth potential in the future.”
In general, India’s e-commerce sector has been on a constant growth, the e-commerce order volume saw a growth of 20% while the GMV (Gross Merchandise Value) witnessed a surge of 23% with an average order size of Rs 1100.
Brand websites to the fore
In a finding that should send a message to many brands, there is an increasing trend of consumers buying directly from brands’ websites. Retail brands are now strengthening their online capabilities and opting for different approaches to connect with consumers.
“In the last one year, there has been a considerable growth of 65% for brands developing their website, which led to an increase in self-shipped orders. However, the percentage of self-shipped orders declined from 35% in February 2020 to 30% in June 2020,” the report said.
The number of consumers shopping directly from the brand’s website is increasing at a much faster pace than marketplaces. Brand websites have witnessed 88% order volume growth as compared to 32% order volume growth on marketplaces.
In another important and interesting finding, Tier 2 and beyond cities are said to drive two-thirds of the total online consumer demand in India. Tier II and beyond cities contribute around 66% of the total online consumer demand in India and this share is expected to rise in the coming years.
Unique online consumers from these ‘mofussil’ areas are expected to reach 170 million by 2023, the report said. Also, fashion is the most popular category in Tier-3 cities reflecting the aspirations of the people in those places. Apparel segment gives 50% of sales, it is said.
Tier III and beyond cities witnessed 53% growth, making it the fastest-growing region.
The top 3 segments that have seen an increasing penetration of D2C brands are beauty & wellness, fashion & accessories, and FMCG & agricultural sectors.
The top 3 States, by e-commerce volumes, are Delhi NCR, Maharashtra, and Karnataka, and they constitute 65% of overall consumer demand.
Finally some news to cheer on the economy front (or is it e-conomy?) Indian e-commerce space not only seems to have recovered from the impact of Covid-19 lockdown blues, but also witnessed an order volume growth of 17 per cent in June, according to a report by Unicommerce, an e-commerce…
Recent Posts
- Netflix’s Cobra Kai season 6 will be a mega 15 episode epic released in 3 parts from July
- Laptops, graphics cards, and other PC components may soon be more expensive – and price hikes could get worse later this year
- Quordle today – hints and answers for Friday, May 3 (game #830)
- NYT Strands today — hints, answers and spangram for Friday, May 3 (game #61)
- Microsoft says it did a lot for responsible AI in inaugural transparency report
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011