BENGALURU: The e-commerce industry in India has recorded a 26.2% YoY order volume growth in FY2023, mainly driven by a 23.5% rise in annual GMV (Gross Merchandise Volume) compared to the previous financial year.
Ecommerce enablement SaaS platform Unicommerce in its report 'India E-commerce Index' 2023 said FY2023 saw consumer preference move slightly towards marketplaces that witnessed a 31.2% YoY order volume growth during the period.
The number of online orders shipped-from-store reported a 44.6% growth during FY2023 compared to the previous financial year.
Stores continue to adopt omnichannel technology and during FY-2023, the number of stores that implemented omnichannel operations rose by 58.4% as compared to the last financial year, said the report.
Kapil Makhija, CEO of Unicommerce, said, "The launch of India's e-commerce Index 2023 marks a pivotal moment in our industry's evolution. The consistent growth of over 25% underscores the robust maturity of the sector. Companies are harnessing digital platforms not only to sell but also to promote and engage with consumers."
The e-commerce space has witnessed robust growth in the electronic products and peripherals segment with a 46.8% YoY order volume growth and GMV grew by 20.6% in FY-2023, the report said. The eyewear & accessories segment recorded a 44.6% YoY order volume growth during FY-2023.
Driven by the increasing number of young consumers, the fashion & accessories segment witnessed a YoY order volume growth of 19.5% along with a rise in its GMV by 15.3% during FY-2023, the report added.
The report says that there has been a notable shift of consumers shifting back to Tier I and metropolitan cities for work, resulting in Tier I cities exhibiting fast growth in order volumes relative to Tier II and Tier III cities. Tier I regions indicated the highest YoY order volume growth of 31.1% during FY-2023, followed by Tier II and Tier III cities which witnessed YoY order volume growth rates of 23.3% and 22.4%, respectively, during the same period.
The market share of Tier II and Tier III cities stood at 18.6% and 37.1% respectively in FY-2023, reducing slightly from 19.2% and 38.6% respectively during FY-2022.