Bihar: India’s e-commerce landscape has undergone a dramatic shift this festive season, with small and non-metro cities outpacing the metros in online shopping. According to a report by logistics intelligence platform ClickPost, Tier-2 and Tier-3 cities together contributed nearly 74.7% of all online orders during the Diwali period.
The report, based on an analysis of over 42.5 million shipments, found that Tier-3 cities alone accounted for 50.7% of total orders, while Tier-2 cities made up 24.8%. In contrast, metros contributed less than a quarter of all online purchases, underscoring how digital retail has penetrated deep into smaller towns.
Fashion and cosmetics were among the top-performing categories. During Durga Puja, demand for fashion products jumped by 14.3%, while Karva Chauth saw cosmetic sales double that growth rate, reflecting the evolving preferences of consumers in smaller markets.
Despite the spike in orders, India’s logistics network managed an impressive average delivery time of 2.83 days, with same-day delivery nearly doubling from 4.2% to 8.7% compared to last year.
Digital payments also saw a surge, though cash-on-delivery continues to dominate in smaller cities — accounting for 52% of all transactions. The average order value rose from Rs. 3,281 in 2024 to Rs. 4,346 in 2025, marking a 32.5% annual increase.
ClickPost CEO Naman Vijay described this as “a new era for India’s retail market,” adding that “Tier-3 cities are now driving e-commerce growth faster than metros. Smart retailers are already planning next year’s Diwali with faster delivery, hyperlocal inventory, and region-specific products.”
