Non-metro cities fuel India’s online Diwali sales: Report

Update: 2025-10-19 18:39 GMT

New Delhi: Non-metro India has emerged as the powerhouse of this year’s online Diwali shopping, driving nearly three-fourths of total e-commerce volumes, with tier-3 cities alone contributing over 50 per cent, industry data shows.

According to logistics intelligence platform ClickPost, which analysed over 4.25 crore shipments, non-metro regions are now the fastest-growing and largest contributors to festive e-commerce.

“Tier-3 cities accounted for 50.7 per cent of all orders in 2025. Combined with Tier-2 cities at 24.8 per cent, Bharat represented nearly 74.7 per cent of total festive orders — solidifying its role as the engine of India’s e-commerce growth,” the report said.

Festive momentum was fuelled by Durga Puja and Karwa Chauth, with fashion orders rising 14.3 per cent during the pre-Puja week, while cosmetic sales nearly doubled fashion orders during Karwa Chauth.

Despite the surge, logistics networks maintained efficient delivery timelines, averaging 2.83 days per shipment. Same-day hyperlocal deliveries rose 42 per cent year-on-year, now forming 8.7 per cent of total orders.

Cash on delivery (COD) remained dominant in Tier-3 cities, accounting for 52 per cent of orders, while prepaid digital payments led in higher-value transactions.

The average order value increased 32.5 per cent year-on-year — from ₹3,281 in 2024 to ₹4,346 in 2025.

“We’re entering a new era where Tier-3 towns out-order metros, COD still rules the heartland, and prepaid dominates premium baskets. Home-upgrades, not just apparel, are driving festive spends,” said Naman Vijay, co-founder and CEO of ClickPost.

He added that brands are now investing in faster fulfilment, localised offers, and smarter inventory systems to serve this rapidly expanding market. Agencies

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