E-commerce Industry records 26% YoY Order Volume Growth In FY23: Report

New Delhi, Aug 10 (KNN) India’s e-commerce industry has recorded a 26.2 per cent YoY order volume growth in FY-2023 supported by a 23.5 per cent rise in annual GMV (Gross Merchandise Volume) compared to the previous financial year, Unicommerce, India’s e-commerce enablement SaaS platform said.

Unicommerce in its report India E-commerce Index’ 2023 pointed out that the consistently rising consumer inclination towards online shopping provides a rationale for the rapid adoption of omnichannel strategies by brands to cater to the rising demand across both physical and digital channels.

As per the report, the electronic peripherals and home appliances, eyewear and accessories most demanded during FY-2023. “The e-commerce space has witnessed robust growth in the electronic products and peripherals segment with a 46.8 per cent YoY order volume growth and GMV grew by 20.6 per cent in FY-2023,” it said.

One of the major reasons for this growth is the inclusion of newer brands which were seen offering economical products across the segment.

The Eyewear and Accessories segment also recorded a 44.6 per cent YoY order volume growth during FY-2023. The segment’s GMV saw a significant uptick and rose by 52.8 per cent annually during the same period as compared to the last financial year.

The Beauty and Personal Care segment recorded a 26.6 per cent YoY order volume growth and an 18.9 per cent YoY growth in GMV during FY-2023. Driven by the increasing number of young consumers, the Fashion and Accessories segment witnessed a YoY order volume growth of 19.5 per cent along with a rise in its GMV by 15.3 per cent during FY-2023.

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 per cent underscores the robust maturity of the sector. E-commerce is no longer just an additional sales channel; it has 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,” he said.

Other sectors that witnessed a growth in FY23 includes Health and Pharma, Beauty and Personal Care, Home Decor, Fashion and Accessories, FMCG etc.

Unicommerce revealed that 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.

“Tier I regions indicated the highest YoY order volume growth of 31.1 per cent during FY-2023, followed by Tier II and Tier III cities which witnessed YoY order volume growth rates of 23.3 per cent and 22.4 per cent respectively, during the same period,” it said.

The report added that the market share of Tier II and Tier III cities stood at 18.6 per cent and 37.1 per cent respectively in FY-2023, reducing slightly from 19.2 per cent and 38.6 per cent respectively during FY-2022. Tier I cities however observed a slight increase in market share during the same period which stood at 44.3 per cent in FY-2023 as compared to 42.2 per cent in FY-2022.

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.

As the demand for omnichannel strategies rises, new-age brands have integrated this approach into their business models, while traditional enterprises are adopting cutting-edge technology to establish a cohesive framework that serves both their physical and online sales channels. The number of online orders shipped-from-store reported a 44.6 per cent growth during FY2023 compared to the previous financial year.

Stores continue to adopt omnichannel technology to serve their customers better and enhance their shopping experience. During FY-2023, the number of stores that implemented omnichannel operations rose by 58.4 per cent as compared to the last financial year.  (KNN Bureau)