E-commerce industry records 26% growth in orders in FY23

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According to the ‘India E-commerce Index 2023’ report by an e-commerce enablement SaaS platform Unicommerce, the e-commerce industry in India has recorded a 26.2% Year-on-Year (y-o-y) order volume growth in FY2023. The growth was largely driven by an increase of 23.5% (Y-O-Y) in the annual GMV (Gross Merchandise Volume). 

The report noted that consumer inclination is constantly heading towards online shopping. Consequently, there has been a rapid adoption of omnichannel strategies by brands to cater to the growing demand, not only on physical but digital channels as well.

The shipment of online orders from stores saw a growth of 44.6% (y-o-y) during FY2023. As per the report, the stores are incessantly embracing the omnichannel technologies. In FY-2023, the number of stores that implemented omni-channel operations had increased by 58.4% (y-o-y). Consumer preference had also moved towards marketplaces, which led to 31.2% YoY order volume growth.

The report noted a considerable number of consumers shifting back to Tier I and metropolitan cities for work. Tier I cities, thus reported a rapid growth in order volumes as compared to the Tier II and Tier III cities. Tier I cities registered the highest YoY order volume growth of 31.1% during FY-2023. The Tier II and Tier III cities recorded YoY order volume growth of 23.3% and 22.4%, respectively, in the same period. 

As per the report, the electronic products and peripherals segment reported a 46.8% increase in year-on-year order volume growth and GMV rose by 20.6% in FY23. The eyewear and accessories segment recorded a 44.6% YoY order volume growth during FY-2023, while its GMV rose by 52.8%. Beauty and personal care segment grew 26.6% year-on-year in terms of volumes and 18.9% in GMV.