Tier 1 cities reported the highest growth of 31.1% while tier 2 and tier 3 cities grew 23.3% and 22.4% respectively
India’s e-commerce industry has recorded an impressive 26.2% year-on-year (YoY) growth in order volume in financial year (FY) 2023, as per an annual trends report by e-commerce enablement SaaS platform Unicommerce.
Titled ‘India E-commerce Index’ 2023, the report further found that the growth is supported by a 23.5% rise in annual GMV (Gross Merchandise Volume) compared to the previous financial year.
“The consistent growth of over 25% underscores the robust maturity of the sector. E-commerce is no longer just an additional sales channel; it has seamlessly woven itself into the fabric of modern business,” Kapil Makhija, Chief Executive Officer of Unicommerce said.
“Companies are harnessing digital platforms not only to sell but also to promote and engage with consumers. We are transitioning into a true omnichannel era where brands and consumers seamlessly interact and transact across a multitude of online and offline touchpoints,” Makhija added.
The report highlights the consistently rising consumer inclination towards online shopping and provides a rationale for the rapid adoption of omnichannel strategies by brands to cater to the rising demand across both physical and digital channels.
Highlights from the report:
– E-commerce space has witnessed robust growth in the electronic products and peripherals segment with a notable 46.8% YoY order volume growth and GMV grew by 20.6% in FY-2023.
– The eyewear and accessories segment recorded a substantial 44.6% YoY order volume growth during FY 2023. The segment’s GMV saw a significant uptick and rose by 52.8% annually during the same period as compared to the last financial year.
– The beauty and personal care segment recorded a reasonable 26.6% YoY order volume growth and an 18.9% YoY growth in GMV during FY-2023.
– The fashion and accessories segment witnessed a YoY order volume growth of 19.5% along with a rise in its GMV by 15.3% during FY-2023.
– The home décor segment witnessed strong YoY growth of 27.2% in its order volumes during FY-2023. As a result of brands offering high-quality products, the segment’s GMV increased by 46.5% annually during the same period as compared to FY-2022 resulting in a jump in the average order value by 15% during the period.
– The health and pharma segment recorded a YoY order volume growth of 22.1% during FY-2023. With the segment catering to the discrete needs of a diversified audience, the segment’s GMV rose by 38.5% leading to the average order value growing by 13% during the same period.
– Marketplaces witnessed a 31.2% YoY order volume growth during the period. Brands continue to offer exceptional experiences via their brand websites, providing exclusivity and personalization and saw a YoY order volume growth of 24% during FY-2023.
– Tier 1 regions indicated the highest YoY order volume growth of 31.1% during FY 2023, followed by tier 2 and tier 3 cities, which witnessed YoY order volume growth rates of 23.3% and 22.4% respectively.
– The market share of tier 2 and tier 3 cities stood at 18.6% and 37.1% respectively in FY 2023, reducing slightly from 19.2% and 38.6% respectively during FY 2022. Tier 1 cities, however, observed a slight increase in market share during the same period which stood at 44.3% in FY-2023 as compared to 42.2% in FY 2022.
– The FY 2023 exhibited a slight rise in order returns which stood at 10.4% as compared to 9.8% order returns in FY-2022.
– The return rate for cash on delivery (COD) orders stood at 20.9%, a slight uptick from the 19.3% recorded in FY 2022.
– The number of online orders shipped-from-store reported a 44.6% growth during FY2023 compared to the previous financial year.
– The number of stores that implemented omnichannel operations rose by 58.4% as compared to the last financial year.
Unicommerce is a decade-old company that provides a post-purchase experience management platform to empower D2C brands, omnichannel retailers, e-commerce companies, and other online sellers with its SaaS-based integrated supply chain technology.
The company has a nationwide presence across 8,000 warehouses and over 3,000 stores; it currently powers more than 20,000 businesses across 45 industry segments and has achieved an annual run rate of processing over 600 million transactions amounting to $ 7 billion annual GMV (gross merchandise value), the company said in a release.
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