Fashion Leads E-commerce Surge in Tier-3 Cities, Shaping 2024's Retail Landscape

In 2024, fashion and accessories dominate 30% of online orders, while beauty and personal care follow at 19%. Tier-3 cities see a surge in e-commerce growth, driven by increased demand for travel accessories and electronics. Unicommerce reports advancements in omnichannel technology and shifted consumer purchasing patterns.

Fashion and accessories have emerged as the leading category in the e-commerce sector for 2024, comprising 30% of total order volume. According to Unicommerce, a prominent e-commerce enabler, beauty, wellness, and personal care follow closely at 19%. Casual and western wear maintain their status as consumer favorites within the fashion segment.

The rise in online shopping has been particularly significant in Tier-3 cities, surpassing other regions in order volume growth. Products like travel accessories saw a remarkable 200% surge. The popularity of watches doubled, and books and gaming accessories rose by 85% and 60%, respectively. E-commerce platforms have also offered more substantial discounts, enhancing accessibility.

Average Order Values (AoV) saw an upward trend across categories. FMCG products' AoV increased by 17%, while electronics experienced a 12% hike. The return rate on customer-initiated orders improved, dropping to 7.8% in 2024, showcasing enhanced customer satisfaction. However, Return to Origin (RTO) rates saw a slight increase.

(With inputs from agencies.)