India’s e-commerce sector sustained its remarkable growth in 2024, significantly driven by the rising purchasing power of Tier-III cities and the adoption of omnichannel strategies, as revealed in the Unicommerce 2024 Trends Report. The report analyzed nearly 900 million transactions, highlighting shifting consumer preferences and booming demand across various categories.
Fashion & Beauty Dominate Market Share
The fashion and accessories category retained its crown as the leader in online order volume, accounting for a staggering 29% of total e-commerce purchases. Casual wear and western apparel topped the charts as the most sought-after products in this segment. Meanwhile, the beauty, wellness, and personal care sector carved out a 20% share of total orders, showcasing a consumer pivot towards self-care. Key products in this category included face and body washes, moisturizers, sunscreens, and health supplements.
The Rise of Tier-III Cities
Smaller cities emerged as e-commerce powerhouses in 2024, experiencing exponential growth across diverse product categories:
- Travel Accessories: Orders skyrocketed by 200%, with backpacks, laptop sleeves, and motorcycle gear leading the charge.
- Watches: Demand doubled compared to the previous year.
- Books & Gaming Accessories: Orders grew by 85% and 60%, respectively.
This expansion reflects improved internet penetration and better logistics networks catering to these emerging markets.
Discounts and Higher Spending Trends
Discounts were a key driver of e-commerce growth in 2024, with markdowns ranging between 15–30%, compared to 10–25% in 2023. The strategy led to notable increases in Average Order Values (AoV) across categories:
- FMCG: AoV rose by 17%, from ₹450+ in 2023 to ₹530+ in 2024.
- Electronics & Home Appliances: Registered a 12% increase, climbing from ₹1,690+ to ₹1,900+.
- Home Decor: Grew by over 12%, with AoVs increasing from ₹690+ to ₹780+.
Returns and Payment Preferences
Customer returns improved in 2024, dropping from 10% in 2023 to 7.8%. However, Return to Origin (RTO) orders slightly rose from 6.2% to 7.3%. Prepaid transactions accounted for 62% of all orders, boasting significantly lower return rates (10%) compared to Cash on Delivery (CoD) orders, which reported a high 24% return rate.
Omnichannel: The Future of Retail
The adoption of omnichannel retail strategies surged in 2024, with 40% more stores integrating omnichannel technology. Ship-from-store orders witnessed a 50% year-on-year increase, signifying a stronger alignment between physical and online retail platforms. These initiatives ensured a consistent and seamless customer experience across all channels.
Conclusion
India’s e-commerce landscape is evolving rapidly, fueled by the expanding digital footprint of smaller cities and the increasing sophistication of retail strategies. With higher discounts, broader product categories, and a customer-first approach, 2024 has firmly positioned the sector for sustained growth.
