Desk : According to a report by logistics intelligence platform ClickPost, online sales increased by 49 percent during the festive season, up 10 percent from the 39 percent seen in 2023. According to the report, this growth has been driven mainly due to the contribution of tier II and III cities, which together account for more than 60 percent of sales.
The ClickPost report analyzed data from 61 million shipments in six key categories (cosmetics, electronics, fashion, furniture, home decor and jewelry) for September, October and November 2023 and 2024.
Tier II and III cities, which now account for more than 60 per cent of total sales, were driven by regional traffic growth, which grew by 45 per cent. With 85 percent of Amazon shoppers at the Great Indian Festival coming from non-metropolitan areas, ClickPost noted that direct-to-consumer (D2C) brands are gaining a larger share in the metro market compared to larger markets.
The increase was supported by efforts to connect more Indians to digital markets, including better internet penetration, targeted promotions and a significant increase in the participation of Generation Z and female shoppers.
As Diwali approached, gross merchandise value (GMV) increased by 23 percent, with electronics, fashion and home décor seeing the biggest increases. The average order value (AOV) for electronics stood at Rs 38,000, driven by personal technology and smart home devices. In fashion, festive wear increased the AOV to Rs 4,000, while in home décor, the AOV of around Rs 7,900 reflected the pressure for better and longer-lasting purchases. Cashback offers and no-cost equal monthly installment (EMI) options also contributed to the trend.
If there was one game-changer this Diwali, it was the speed of delivery. A 20 percent increase in hyperlocal partners reduced delivery times to an impressive 2.5 days, responding to rapidly changing buyer expectations. Same-day and next-day delivery became not only a convenience but almost an expectation.
Cash on delivery (COD) remains popular, especially outside metropolitan cities, with the ratio of COD to prepaid being 3:1 for categories such as cosmetics and fashion. However, in metropolitan areas, prepaid transactions increased, supported by digital wallet rewards and cash back offers on big-ticket items. As COD continues to dominate in non-metropolitan areas, e-commerce companies may need to innovate more to attract these cash-preferring shoppers.
According to the report, the rise of hyperlocal carriers helped reduce delivery times and a 95 percent on-time delivery rate ensured shoppers received their purchases exactly when they wanted them.
This Diwali, returns were snappier than ever, especially in fashion, where size and fit issues often lead to high return rates. Electronics and cosmetics showed a modest improvement in non-delivery resolution (NDR) and return to origin (RTO) rates, while jewelry saw a sharp drop in RTO rates, reflecting a process of more sophisticated and customer-friendly returns. Brands that made the returns experience easier had higher rates of repeat customers.
Naman Vijay, Co-Founder, ClickPost, said, “Painpoints like on-time delivery, RTO and customer experience were addressed efficiently even as the festival rush served as a stress test for the logistics network.” “This is proof that data-driven supply chains not only meet demand; They increase customer satisfaction and drive rapid growth for Indian brands.
