Diwali 2024: Ecommerce Sales Soar By 49%, Led by Tier 2 & 3 Cities

Diwali 2024 proved to be a festive bonanza for the ecommerce ecosystem as online sales soared by 49 per cent during this period, a 10 per cent growth over 2023’s 39 per cent, according to a report by ClickPost. The report revealed the steady rise of tier 2 and 3 cities, which now account for over 60 per cent of all sales, driven by a wave of regional traffic that surged 45 per cent.

As per the report, there was a surge in high-value purchases as Diwali 2024 saw Gross Merchandise Value (GMV) increase by 23 per cent, led by high-ticket categories like electronics, fashion, and home décor. The report revealed that cash-on-delivery was three times more popular in non-metros than in metros, while digital payments grew in urban centers.

On the logistical efficiency front, a 20 per cent increase in hyperlocal carriers cut average delivery times to 2.5 days, achieving a 95 per cent Estimated Delivery Date (EDD) accuracy rate. Cash-on-delivery (COD) held its ground, especially outside metro cities, with a 3:1 ratio of COD over prepaid for categories like cosmetics and fashion. Yet, in the metros, prepaid transactions gained momentum, helped by digital wallet rewards and cashback on big-ticket items.

“Pain points like on-time delivery, RTOs, and customer experience are skillfully tackled, even with the festive rush acting as a stress test for the logistics network. This is proof that data-driven supply chains don’t just meet demand; they elevate customer satisfaction and drive rapid growth for Indian brands,” stated Naman Vijay, Co-founder, ClickPost.

The report highlighted that as Diwali unfolded, GMV rose by 23 per cent, with the biggest gains in electronics, fashion and home decor. Each category highlighted a trend toward quality. Electronics had an Average Order Value (AOV) of Rs 38,000, driven by personal tech and smart home gadgets. In Fashion, festive apparel lifted the AOV to Rs 4,000, while in home decor, an AOV of around Rs 7,900 reflected a push for better, longer-lasting purchases.