Tier-3 cities are driving India's online Diwali shopping
What's the story
India's online Diwali shopping has been largely driven by non-metro cities this year. According to industry data, these regions contributed nearly three-quarters of the total e-commerce volume, with tier-3 cities alone accounting for over 50%. The findings were revealed in an analysis of over 4.25 crore shipments by logistics intelligence platform ClickPost.
E-commerce growth
Tier-2 cities contribute another 24.8%
ClickPost's analysis highlights non-metro India as the fastest and largest driver of festive e-commerce. Tier-3 cities alone accounted for 50.7% of all orders in 2025, while tier-2 cities contributed another 24.8%. Together, these regions account for nearly three-quarters (74.7%) of the total order volume, confirming their role as an engine of e-commerce scale.
Information
Fashion, cosmetics purchases surge
The festive season also saw a spike in fashion and cosmetic purchases. Durga Puja, for instance, saw a 14.3% increase in fashion orders during the pre-Puja week. Karwa Chauth also contributed to this trend, with cosmetic buys nearly doubling.
Delivery efficiency
Logistics networks maintain efficiency
Despite the increase in complexity and volume, India's logistics networks managed to keep an average delivery time of 2.83 days for festive shipments. The share of same-day hyperlocal deliveries also witnessed a massive 42% year-on-year (YoY) increase, accounting for 8.7% of all orders. This shows that even with the increased demand during the festive season, logistics companies have been able to deliver goods on time.
Payment preferences
CoD remains most preferred payment method in tier-3 cities
In tier-3 cities, cash on delivery (CoD) remained the most preferred payment method, accounting for 52% of all orders. This was despite prepaid digital payments dominating higher-value transactions across the country. The average order value also saw a significant jump of 32.5% YoY, from ₹3,281 in 2024 to ₹4,346 in 2025.