Growth is no longer solely supported by metro cities! Consumers from tier 2, 3, and 4 cities have also displayed remarkable engagement with ecommerce platforms. This shift highlights an emerging trend fueled by various factors like improved internet access, affordable smartphones, localised marketing strategies, and convenience becoming priority.
A Bengaluru-based ecommerce platform Meesho, in an official statement, revealed that nearly 50 per cent of its user base comes from tier 4+ cities. These towns include Naidupeta (Andhra Pradesh), Sherghati (Bihar), and Harapanahalli (Karnataka).
In addition, states and UTs like Ladakh, Uttar Pradesh, and Bihar have emerged as frontrunners in ecommerce user growth, highlighting the vast untapped potential of tier 2+ markets. The platform witnessed over 70% year-on-year growth in orders from these emerging markets dominated by categories like beauty, personal care, home appliances, etc.
The platform witnessed around 35 per cent spike in overall orders across categories such as fashion, beauty, personal care, and home essentials. While tier 2+ towns were a key driver of this expansion, repeat shoppers from metro cities like Delhi, Bengaluru, and Hyderabad further strengthened Meesho’s broad appeal, reinforcing its deep presence across both urban and rural India.
Amazon Sales From Non-Metros
In November, Amazon India stated that the e-commerce giant has announced record-breaking results during the recent festive season. Of this, more than 85 per cent of the total visits were from non-metro cities. The company witnessed 140 crore customer visits during the Great Indian Festival, with a significant contribution from tier 2 and smaller cities.
More than 70 per cent of sellers surpassed Rs 1 crore sales mark as compared to last year, with small businesses, artisans, and women entrepreneurs selling over 1,000 units every minute. Besides this, around 42,000 sellers also achieved their highest-ever single-day sales, with 70 per cent of them from non-metro cities.
Amazon's growth was driven by customers from non-metro cities, accounting for over half of all TV and large appliance sales. The company's essential daily needs business arm 'Amazon Bazaar' also experienced aa four-fold increase in users, predominantly from tier 2 and other non-metro cities.
The order volume of e-commerce firms grew by 20 per cent during the first four days of the festive season sale from September 26 to September 29, as compared to the first four days of the festive season sales last year (October 7 to October 10, 2023).
