Small-city ecomm surges, order values trail big markets

Newspoint
BENGALURU: Online shopping is expanding beyond India's biggest cities, but the value of those purchases remains concentrated in larger markets.

Of more than 200 million orders processed in the last 12 months up to July this year, 57.2% originated outside the 96 largest cities, but these orders accounted for only 39.3% of total transaction value. Their average order value was Rs 830, less than half the Rs 1,714 recorded in the largest cities.
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EasyEcom, an ecommerce software company, compiled the data from transactions processed through marketplaces, brand websites, quick-comm platforms, distributors and other channels connected to its system. Its customers include Borosil, Cred, Minimalist and Pilgrim, among others.

The gap suggests that ecommerce growth outside the biggest cities is driven more by higher transaction volumes than by higher-value purchases. This could have implications for brands deciding where to hold inventory and how to manage deliveries across a wider network.

The divide is even sharper at the state level. Of the 15 largest states in the dataset, 13 changed position when ranked by transaction value rather than order volume. Haryana moved from 11th by orders to third by value, supported by higher-value transactions in Gurugram and Sonipat. Its average order value of Rs 3,804 was more than six times Bihar's Rs 609. Bihar moved in the opposite direction, falling from 10th by volume to 15th by value.

At the city level, Bengaluru was the largest market by order count, with around 11 million orders, 84% more than Mumbai. Gurugram ranked only seventh by volume but second by value, at Rs 1,848 crore. Its average order value of Rs 6,693 was more than four times Delhi's Rs 1,499.