Online shopping growth shifts to smaller cities, finds new study

Indians are set out to spend $140-160 billion on online purchases by 2025. Soon, we’ll leave behind the U.S. and become the second biggest online shopper in the world, says the latest report by Ecom Express and ISB Institute of Data Science.

Cities like Kolhapur, Jammu, Azamgarh and others are bringing in the largest volume of online orders across the country when compared with their population. Lucknow and Jaipur emerged as the top rankers with higher percentage of online shoppers. Indian shoppers prefer cash on delivery (COD) instead of prepayment.

As much as 70% of items bought online are clothes, fashion accessories, skincare, and makeup products. In Gurugram, top wear is bought three times more as compared to other metros like Delhi, Kolkata, and Bengaluru.

The insights derived in this first report provide insights relevant for growth hotspots in the country and influence decisions at the back of consumer shopping behaviours and preferences: Ashish Sikka, Ecom Express

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: Dipanjan Banerjee, Ecom Express

E-commerce 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: Avik Sarkar, ISB Institute of Data Science

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