How E-commerce Transactions Surged Upto 82 pc Between 2020 and 2021 in Tier-II Cities

India's e-commerce business surged 77 percent between 2020 and 2021 with transactions from Tier II and III cities higher than ever
How E-commerce Transactions Surged Upto 82 pc Between 2020 and 2021 in Tier-II Cities

Given the strong internet penetration across Bharat, Tier I and Tier II are seeing a major demand for e-commerce. The Tier I cities have dominated the fashion festival figures, while transactions in Tier II cities such as Jaipur, Lucknow, Guwahati, Mysuru, Kochi and Bhubaneswar are at an all-time high, rising 82 percent from the year-ago period.  

The festival season trends indicate a healthy and fast-evolving competition that bodes well for customers looking for quality products at affordable prices, experts believe. 

Also, a majority of e-commerce consumers are between 26 and 35 years old, accounting for 37 percent, while the 18-25 segment accounted for 26 percent, according to a survey by Bobble AI.  

Moreover, overall speaking, India’s e-commerce business surged 77 percent between 2020 and 2021 with transactions from Tier II and III cities higher than ever. 

Specifically, among the etailers, Flipkart remains the dominant player in terms of engagement metrics such as active sessions and search frequency, while Amazon has higher transactions. The festival season also witnessed a direct battle between Amazon and Flipkart — the country’s two biggest e-commerce giants. Flipkart’s active user base grew 83 percent during the 2021 online shopping festival against Amazon’s 72 percent. 

However, despite Flipkart’s dominance over active sessions and search frequency, Amazon is winning the battle in terms of transactions with significantly lower average session times.

Among the categories, 64 percent growth for beauty e-commerce apps is recorded, while fashion segments grew 368 percent on over. The recently-concluded festival period led the two e-commerce domains to surge, with individuals completing at least two transactions during the season.

Experts see that the fashion segment has become a lot more competitive with Flipkart-owned Myntra now facing competition from Meesho, TataCliq, and Ajio. Myntra bagged 46 percent of all transactions during the 2020 festival period, while Ajio bagged 69 percent in 2021. The share of active Myntra users also using Ajio, Meesho, and TataCliq has also gone up, indicating users are now exploring multiple options.

In the online fashion segment, Purplle’s active user base grew a staggering 70 percent growth during the 2021 festival period, while Nykaa had a 50 percent rise, the survey further stated.

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