Tier 2, 3 cities supercharged ecommerce in 2022: Unicommerce
- ByStartupStory | December 19, 2022
In 2022 tier II and III markets have accelerated the ecommerce ecosystem in a huge way with the increase in the number of orders coming from those cities. Within this year alone, the order volumes of Ecommerce has grown up to 36.8%, despite the strong revival of physical retail channels, as per Unicommerce’s ecommerce solutions provider.
Majority of the orders of this year came from buyers in Tier II cities and orders from tier III markets were 65%. The year marked a change in the consumer attitude towards the e-commerce economy. People started to prefer both online and offline shopping with equal priorities. The major reason behind the growth of online marketing is the large assortments at affordable prices in under-penetrated markets. The market share of Tier III cities increased to 41.5% from 34.2% and Tier II it was 21.4% from 19.4% but for Tier I cities it decreased to 37.1% from 46.4%.
The growth was a result of technology adoption which “improved capabilities of brands.” “Technology will continue to drive business growth, increased efficiencies and enhanced user experience as ecommerce becomes a mainstream channel across all parts of the retail ecosystem. We look forward to continuing to enable the growth of ecommerce in India and beyond,” said the Unicommerce CEO, Kapil Makhija.
Tier II and III are growing much faster than Tier I markets, by paving the way for the next layer of ecommerce growth in India, powered by users living outside big cities. The higher adoption of omnichannel among retail brands, with companies leveraging their offline stores to fulfil online orders. The 55.6% growth in order volume of ship-from-store channel, Increase in the number of brands going omnichannel and coming for additional stores in the existing brands etc are the other developments that happened in this year for the ecommerce economy.
Follow Startup Story
Related Posts
