Online shopping surges in Tier III cities; Lucknow, Jaipur lead the way: Report

Lucknow and Jaipur have the highest percentage of online shoppers while emerging Tier III cities such as Port Blair, Salur, Kakching, Nagaur, Kondapi, Panchkula, and Berhampur are seeing an increase in online shopping, a report by Ecom Express and ISB revealed.

With 70% of online purchases consisting of clothing, fashion accessories, skincare, and make-up products, cash on delivery (CoD) option has become popular, the survey noted. It studied online shopping patterns across different geographies, product categories, and payment trends in various markets.

There is also an increase in online shopping activity in smaller towns, with Port Blair's online shopping activity being 1/20th of Delhi's online shopping activity, the report highlighted.

Many cities cater specifically to the metropolis: Gurugram has three times more purchases of top wear.

The survey also revealed growth hotspots like Kolhapur, Jammu, and Azamgarh bring in the largest volume of online orders, indicating that online shopping is breaking barriers due to the scarcity of physical retail outlets.

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“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,” Avik Sarkar, Lead Researcher, ISB Institute of Data Science, said.

Logistics solutions company Ecom Express partnered with the ISB Institute of Data Science to conduct a study on consumer shopping habits and demand across various regions.

"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,” Dipanjan Banerjee, Chief Business Officer, Ecom Express, said.