In an economy recovering from the pandemic, online shopping has continued to hold its stronghold. There was a 37% increase in eCommerce order volumes from the past year. Here’s everything you need to know!
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Online shopping is not going anywhere
This report from Unicommerce successfully allayed several fears of online sellers. As the world recovered from the pandemic, physical shopping began to rise from the ashes. So much so, that the booming D2C community were forced to consider for a second “is eCommerce receding?”
Well, according to numbers.- it’s anything but.
The report says India’s eCommerce industry has seen a 36.8% year-on-year growth in 2022.
Who is buying more?
India’s galloping internet penetration rates have brought those living in tier 2 cities and beyond to the forefront. Data suggests that factors such as vernacular language and improving logistics have led to higher adoption of eCommerce in tier 2 and tier 3 cities.
Tier-3 markets like Udaipur, Roorkee and Rohtak grew 64.7% year on year.
Tier-2 markets like Amritsar and Bhubhaneshwar saw a 50.9% growth.
Tier-1 cities coming in last saw a lower growth rate. They clocked in 37% growth compared to 46% in 2022.
Our digital marketing trends report explores other themes and factors that would help you capture the key demographic in 2023. Download it for free here.
What category saw more purchases?
After an analysis of 500 million eCommerce transactions, these are the categories that have come out as winners. D2C sellers should keep them in mind as they move into 2023.
🏆 Beauty, wellness and personal care
An evergreen winner, beauty and personal care products (eyewear specifically) were the fastest-growing categories.
Beauty and personal care segments saw a 76.6% increase in order volume growth year on year, while eyewear and accessories saw a 55.70% growth.
Do you sell cosmetics and beauty products online? Read this blog to know some eCommerce beauty trends for 2023 that could present themselves as a business opportunity to you.
(P.s. Fashion and apparel were still the leaders in terms of order volume in 2022)
Some economic trivia for you
The rise in beauty products sales could also be related to geopolitical tensions and the global economic slowdown that we saw in 2022. How?
Have you heard about the lipstick theory? 💄
The basic idea is that since consumers can’t make too many large capital investments because of decreasing disposable cash, they turn to smaller things that can make them feel happier in life. (Like, looking good and taking care of yourself).
You can read more about its economic implications here.
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