“For the third quarter of this year, which ended in September, India’s e-commerce industry experienced an order volume rise of 31% compared to the same time last year, a study said on Wednesday.
However, although the order volume has increased dramatically, the corresponding gross merchandise value (GMV) has only increased by 24% due to a five percent decrease in the average order value, said the Unicommerce research, the leading SaaS (software-as-a-service) platform based on e-commerce.
The findings showed that personal care and health and pharmaceuticals emerged as the fastest-growing segments, but while they have lower growth, electronics and fashion remain the largest group with the maximum share of order volume.
Interestingly, the results showed that the brand’s own websites recorded a rise of more than 78% in Q3 compared to 35% from the markets over the same period.
Mr. Kapil Makhija, CEO, Unicommerce, said in a statement, “”With the increasing focus of companies on investing in online channels and rising interest in adopting technology solutions to improve business operations, we firmly believe this growth momentum will continue for the next few quarters””.
Consumers living in India’s tier-2 and tier-3 cities are driving the huge growth of e-commerce.
Growth from tier 2 and beyond cities is driven by the growing emphasis on regional markets and rising smartphone adoption.
A growth of over 90% has been shown by tier-3 and beyond cities, said the study.
Reducing return orders is another major news for the e-commerce ecosystem. According to the results, there has been a substantial decrease of approximately 22% in returns per forwarding order, which is possibly representative of a maturing e-commerce ecosystem.”