Ecommerce records 26% YoY order volume growth in FY23
By Retail4Growth Bureau | August 14, 2023
According to Unicommerce’s ‘India E-commerce Index’ 2023 report, the number of stores that implemented omnichannel operations during FY-2023, rose by 58.4% as compared to the last financial year. Also, Tier I Cities reported the highest growth of 31.1%; while Tier II and Tier III cities grew 23.3 and 22.4% respectively.
Unicommerce, India’s leading e-commerce enablement SaaS platform has launched the third edition of its annual trends report, the ‘India E-commerce Index’ 2023. Indicating a maturing e-commerce landscape across the country, India’s e-commerce industry has recorded an impressive 26.2% YoY order volume growth in FY-2023 supported by a 23.5% rise in annual GMV (Gross Merchandise Volume) compared to the previous financial year.
The report throws light on the consistently rising consumer inclination towards online shopping and provides a rationale for the rapid adoption of omnichannel strategies by brands to cater to the rising demand across both physical and digital channels.
- Robust growth in the electronic products & peripherals segment with a notable 46.8% YoY order volume growth
- Eyewear & Accessories segment recorded a substantial 44.6% YoY order volume growth during FY-2023
- With rising demand for artifacts, kitchenware, wall hangings and plant accessories, the Home Decor segment witnessed strong YoY growth of 27.2
- Health & Pharma, which has become an important ecommerce segment as consumers continue to shop for medicines and nutraceuticals online, recorded a YoY order volume growth of 22.1% during FY-2023
- As brands continued to adopt a mixed approach to serve their customers across their brand websites as well as marketplaces, FY-2023 saw consumer preference move slightly towards marketplaces which witnessed a 31.2% YoY order volume growth during the period
- With a rising number of Beauty & Personal Care brands offering higher discounts across marketplaces, order volumes grew exponentially by 80.1% during FY-2023 whereas, brand websites witnessed a 20.5% rise among the segment during the same period as compared to the last financial year.
- As offices return to regular operations, 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.
- During FY-2023, the number of stores that implemented omnichannel operations rose by 58.4% as compared to the last financial year.
- The number of online orders shipped-from-store reported a 44.6% growth during FY2023 compared to the previous financial year.
- The FY-2023 exhibited a slight rise in order returns which stood at 10.4% as compared to 9.8% order returns in FY-2022. The report further attributed the rise in order returns largely due to Cash-on-Delivery (COD).
Speaking on the launch of the third edition of 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. E-commerce is no longer just an additional sales channel; it has seamlessly woven itself into the fabric of modern business. Companies are harnessing digital platforms not only to sell but also to promote and engage with consumers. We are transitioning into a true omnichannel era where brands and consumers seamlessly interact and transact across a multitude of online and offline touchpoints. At Unicommerce, we remain committed to simplifying e-commerce selling through a range of initiatives. This comprehensive report, now available on our website, reflects our dedication to empowering businesses in this dynamic landscape.”