India’s smaller cities are the real dealmakers for all festive e-commerce sales

  • Flipkart to Amazon and even Snapdeal said that most of their , real customers are come from Tier 2 and 3 cities of India.
  • Snapdeal said that nearly 92% of the orders received so far are from non-metro locations.
  • Flipkart, in fact, says 60-70% of its business is from Tier 2 and 3 cities.
The festive sale is on and every e-commerce site has major deals on offer. The ones who are buying into it the most, are consumers from India’s Tier 2 and 3 cities.

Tier 2 and 3 cities turned out to be the real deal makers for top e-commerce players like - Flipkart, Amazon and even Snapdeal.

For Flipkart’s Big Billion Day sale, the number of transacting customers from Tier 2 cities and beyond, doubled from last year. Meanwhile, Amazon saw 91% of its new customers coming from these towns. Amazon also registered most of its sales in the first 24 hours, from these cities.

Snapdeal which has been running its Snap-Diwali sale said that nearly 92% of the orders received so far are from non-metros. It saw a whopping increase in orders from Bharuch (Gujarat), Pali (Rajasthan), Tezpur (Assam), and Paradip (Odisha).

“The trends from the Diwali sale are an unequivocal confirmation that e-commerce is now a strong channel for buyers in smaller cities,” said Kunal Bahl, CEO & co-founder, Snapdeal.

Local language app aids e-commerce sales

Flipkart says 60-70% of its business from Tier 2 and 3 cities. This made the e-commerce giant turn its focus from English to introduce Hindi language on its app. It plans to expand it to other languages soon.

“With Hindi content, the selection and range of offers has been updated and tens and millions of new consumers can access the app a preferred language,” Rajneesh Kumar, Chief Corporate Officer, told Business Insider earlier.

However, contrary to popular belief, these are not people lured by discounts only.

“Affordability programmes such as no-cost EMI, exchange, instant bank discounts and more continue to enable record number of customers to upgrade to premium products. With more first-time shoppers from small towns than ever before and tens of thousands of small sellers across India already seeing success, we are excited,” said Manish Tiwary, Vice President - Category Management, Amazon India.
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