E-commerce order volume in India clocks 36% growth in 2020 Q4
The last quarter of 2020 saw e-commerce order volume growing by 36 percent in India with Personal care, Beauty, and Wellness (PCB&W) segment being the biggest beneficiary, according to a report.
In October to December 2020 period, PCB&W and FMCG & Healthcare (F&H) categories’ volumes grew by 95 percent and 46 percent year-on-year (YOY), respectively, said the Q4-2020 Ecommerce Trends Report.
The last quarter of 2020 saw ecommerce grow by 36 percent and 30 percent YoY in terms of order volume and gross merchandise value (GMV), respectively, while the average order value declined by five percent in Q4-2020 as compared to the same period last year. The ecommerce industry had reported a 26 percent order volume growth in Q4-2019 vis-a-vis Q4-2018.
However, the average order value declined by 5 per cent in Q4 2020 as compared to same period last year, said the report by Unicommerce, an e-commerce focused supply-chain software-as-a-service (SaaS) technology platform, and global management consulting firm Kearney.
Tier II and III cities accounted for a 90 percent YoY incremental volume and value growth, it said.
The report, which assesses the ecommerce growth in Q4 2020 with the sector-wise analysis, said brand websites reported a 94 percent volume growth in the fourth quarter of 2020 as compared to the same period last year.
Interestingly, brand websites reported 94 per cent volume growth in Q4 2020 as compared to same period last year.
“The e-commerce industry has emerged as the backbone of the retail industry and small and big players have realised the immense potential that e-commerce holds,” Kapil Makhija, CEO, Unicommerce, said in a statement.
“The e-commerce volume growth continued to accelerate in the last quarter of the pandemic hit year,” he added.
The growth accelerated in light of COVID-19 and the effects of lockdown led to a massive change in consumer habits with many new shoppers and sellers coming online, the report said.
- The electronics category witnessed 12 percent YoY growth in average order value (AOV) in addition to 27 percent YoY growth in volumes
- Fashion and accessories continue to be the largest segment by volume. It reported 37 percent YoY volume growth but AOV declined by seven percent YoY in Q4-2020 as compared to the same period last year.