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Non-Metro Cities Drive Diwali Online Shopping Boom, Contributing 75% of Orders
E-Commerce: Non-metro cities in India outpaced metro cities in online shopping this Diwali. Nearly 75% of total e-commerce orders came from smaller cities, with Tier-3 cities alone contributing over 50%. According to the report, cash on delivery remains the preferred choice in these cities.
According to a report, Non-metro cities saw the highest online shopping this Diwali, accounting for nearly three-quarters of total e-commerce volume, with Tier-3 cities alone contributing over 50%.
Logistics intelligence platform ClickPost processed information from 42.5 million shipments. The report found that non-metro cities contributed the most and fastest to e-commerce growth this festive season.
The report said that the speed of India's non-metro cities is surprising. Tier-3 cities contributed 50.7% of orders. Tier-2 cities contributed 24.8% of orders. This implies that smaller Indian cities contributed 74.7% of orders in total. This demonstrates that these regions are now the driving force behind online shopping.
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During Durga Puja, demand for fashion increased by 14.3%. On Karva Chauth, purchases of cosmetic products even surpassed fashion. Despite this large number of orders, logistics companies in the country delivered within an average of 2.83 days. Furthermore, same-day delivery rates increased from 4.2% to 8.7%.
Cash on delivery remains the most preferred method in Tier-3 cities, with 52% of orders being placed using cash on delivery. However, digital payments have become more prevalent across the country for the purchase of high-end products. The average order value has also increased by 32.5%. While the average order value in 2024 was ₹3,281, it increased to ₹4,346 in 2025.
Naman Vijay, co-founder and CEO of ClickPost, said, "India is entering a new era of retail. Tier-3 cities are now outpacing metros. Cash on delivery still reigns supreme, but digital payments are leading the charge for high-end purchases. Along with clothing, home improvement products are also being purchased during the festive season."
He further added, "Smart companies are already preparing for next Diwali. This includes same-day delivery plans in hundreds of cities, offering products tailored to local needs, and faster delivery models." ClickPost handles over 50 million orders each month for over 450 brands across India, Southeast Asia, West Asia and North Africa, and the Americas.
