Indians are ordering a lot more online but for cheaper products
- With job and market insecurities surrounding the pandemic, people aren’t splurging online even if they are mass buying.
- According to a recent report by e-commerce SaaS platform Unicommerce, e-commerce order volumes have gone up by 31% year-on-year in the July-September quarter.
- However, average order value declined by 5% during the same quarter.
AdvertisementWith the coronavirus pandemic gripping the nation, retail has majorly shifted online. The fear of the virus and restrictions have led to fewer people stepping out of their homes; instead, they are shopping online for groceries, medicines, apparel, and more. And even though offline retail outlets and malls are now open, e-commerce has immensely benefited from this change in consumer behaviour.
With job and market insecurities surrounding the pandemic, while several people have turned to online shopping, they are not really spending much.
Mass buying, but not splurging!
AdvertisementAccording to a recent report by e-commerce SaaS platform Unicommerce, e-commerce order volumes have gone up by 31% in the July-September quarter as compared to the same period last year, but the average order value declined by 5%. “While people are ordering more online, consumers are getting value conscious, and ordering lesser value products,” said the report.
This is also driven by the fact that in order to lure customers, e-commerce platforms have been doling out discounts and deals on products. Earlier this year, we have already witnessed sale events like Amazon’s Prime Day, Myntra’s End of Reason Sale, Flipkart’s Independence Day sale. And now, with
Backed by India’s smaller cities, e-commerce is growing
Meanwhile, during the July-September quarter, orders from Tier II and III cities have almost doubled. “The huge growth of e-commerce is driven by consumers living in Tier II and Tier III cities of India. The increasing focus on regional markets and the rising adoption of smartphones is driving growth from Tier II and beyond cities,” said the report.
Indian e-commerce is growing at a steady pace and is projected to hold an 8% share in the overall retail category by 2025, a big jump from its current 4% market share.
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