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

Non-metro cities drove this year's online Diwali shopping boom, accounting for nearly three-quarters of total e-commerce volume, with tier III cities contributing over 50%, according to industry data.

As per the industry data analysis of over 4.25 crore shipments by logistics intelligence platform ClickPost, these regions now represent the fastest and largest drivers of festive ecommerce, solidifying non-metro India's role as the epicentre of order volumes and growth.

"The scale of non-metro India is staggering. Tier III cities alone accounted for 50.7% of all orders in 2025. Combined with tier II (24.8%), Bharat represents nearly three-quarters (74.7%) of the total order volume, confirming its role as the undisputed engine of ecommerce scale," it said.


Festive demand was further boosted by Durga Puja, which saw fashion orders surge by 14.3% during the pre-Puja week and Karwa Chauth, when cosmetic buys nearly doubled fashion purchases.

Despite the complexity and volume increase, India's logistics networks maintained a steady average delivery time of 2.83 days for festive shipments. The share of same-day hyperlocal deliveries surged 42% year-on-year to reach 8.7 per cent of all orders.

Cash on delivery remained the preferred method in Tier 3 cities, comprising 52% of orders, even as prepaid digital payments dominated higher-value transactions nationwide.

The average order value jumped 32.5% year-over-year (from Rs 3,281 in 2024 to Rs 4,346 in 2025).

"We're entering a new era of Indian retail; one where Tier III towns out-order metros, where COD still rules the heartland, yet prepaid dominates the premium basket; where home-upgrades, not just outfits, power festive spend. What that means is, investments in speed, fulfilment, inventory intelligence and localised offers are absolutely foundational.

"The smart players are already preparing for next year's curve: same-day-blueprint in hundreds of towns, tailored assortments, and delivery models built for both 1 lakh orders and 1 minute gratification," Naman Vijay, cofounder and CEO of ClickPost, said.

ClickPost handles over 50 million monthly shipments for over 450 brands (like Nykaa, Puma, Caratlane and Walmart) across India, Southeast Asia, MENA, and the US.