E-commerce Order Volume Continues To Rise With 69 Per Cent YoY Growth In FY22: Report
Driven by the direct-to-consumer (D2C) segment which is estimated to be a USD 70 billion opportunity over the next few years, the overall e-commerce order volume continues to rise with 69.4 per cent Year-On-Year growth in FY22, according to data from e-commerce Saas platform Unicommerce.
As per the Retail and E-commerce Trends’ report released by Unicommerce and Wazir Advisors, India’s e-commerce growth was driven by consumers from from tier-II and tier-III cities in the last two years. The young consumers from these markets are shopping across segments and changing the e-commerce landscape.
The shoppers from tier-II and tier-III cities accounted for over 61.3 per cent of the overall market share in FY22, increasing from 53.8 per cent in FY21. The order volume from tier-II and tier-III cities grew at almost double the pace of tier-I cities with 92.2 per cent and 85.2 per cent y-o-y growth respectively in FY22. In contrast, tier-I cities indicated a comparatively slower order volume growth rate of 47.2 per cent.
Kapil Makhija, CEO, Unicommerce said, “Over the last two years, India’s retail industry has seen a remarkable evolution with wider technology adoption, readiness to try new platforms, and changing mindsets of brands.”
Makhija further added that various segments have become prominent with promising growth potential and consistent y-o-y growth.
While beauty & personal care reported the maximum order volume growth of over 143 per cent in FY22, the FMCG and agriculture and health and pharmaceuticals have also grown significantly over the last two years, with 61.7 per cent and 62.4 per cent order volume growth respectively.
Fashion and accessories and electronics and home appliances have been the biggest categories and have reported an order volume growth of 59.7 per cent and 34.7 per cent respectively in FY22, the report said.
Some Of The Major Developments In The Indian E-Commerce Sector Are As Follows:
In June 2022, Amazon India signed an MoU with Manipur Handloom & Handicrafts Development Corporation Limited (MHHDCL), a Government of Manipur Enterprise to support the growth of artisans and weavers across the state.
India’s E-Commerce sector received USD 15 billion of Private Equity / Venture Capital investments in 2021 which is a 5.4 times increase year on year. This is the highest investment value received by any sector ever in India.
In February 2022 Xpressbees a logistics e-commerce platform become a unicorn valued at USD 1.2 billion. The firm raised USD 300 million in its Series F funding. Amazon India launched One district One product (ODOP) bazaar on its platform to support MSMEs.
In February 2022, Flipkart launched the “sell back programme” to enable trade in smartphones.
In January 2022, Walmart invites Indian sellers to join its US market place with an aim of exporting USD 10 billion from India each year by 2027.
In January 2022, Flipkart has announced expansion in its grocery services and will offer services to 1,800 Indian cities.
In November 2021, XPDEL US-based e-commerce announced expansion in India.
In September 2021, CARS24, India's leading used car e-commerce platform, has raised USD 450 million in funding, comprising a USD 340 million Series F equity round and USD 110 million in debt from various financial institutions.