Non-metro cities power India’s Diwali e-commerce boom
NEW DELHI: India’s smaller cities have emerged as the driving force behind this year’s online Diwali shopping surge, accounting for nearly three-fourths of total e-commerce orders, with Tier 3 towns alone contributing more than 50 per cent, according to data from logistics intelligence platform ClickPost.
Based on the analysis of over 4.25 crore festive shipments, ClickPost said non-metro regions are now the fastest-growing and largest contributors to India’s festive e-commerce ecosystem, cementing their position as the new epicentre of digital retail growth.
“The scale of non-metro India is staggering. Tier 3 cities made up 50.7 per cent of all orders in 2025. Together with Tier 2 cities at 24.8 per cent, Bharat now drives 74.7 per cent of total order volume — the undisputed engine of e-commerce expansion,” the report stated.
Festive demand saw notable spikes around major celebrations — fashion orders jumped 14.3 per cent during the pre-Durga Puja week, while Karwa Chauth triggered a near twofold rise in cosmetic purchases.
Despite the surge in orders, delivery networks maintained efficiency, with an average shipment time of 2.83 days. Same-day hyperlocal deliveries grew 42 per cent year-on-year, reaching 8.7 per cent of all orders.
Cash on delivery (COD) remained the dominant payment mode in Tier 3 markets, comprising 52 per cent of transactions, even as prepaid digital payments led among high-value purchases across the country. The average order value rose 32.5 per cent year-on-year — from ₹3,281 in 2024 to ₹4,346 in 2025.
“We’re entering a new phase of Indian retail — where Tier 3 towns outpace metros, COD still rules the heartland, and prepaid leads the premium basket. Home upgrades, not just fashion, are driving festive spending,” said Naman Vijay, co-founder and CEO of ClickPost.
He added that e-commerce players are now investing in faster fulfilment, localised assortments, and delivery models designed for both scale and speed.
ClickPost processes over 50 million monthly shipments for more than 450 brands, including Nykaa, Puma, Caratlane, and Walmart, across India, Southeast Asia, the Middle East, and the US.
