Tier 3 Shoppers Drive India’s Festive E-commerce Growth
Fynd, a unified commerce platform backed by Reliance Retail Ventures Limited, released its Festive Season Report 2025. The report highlights a major shift in India’s e-commerce landscape. Growth is now being led by operational efficiency, omnichannel fulfilment, and rising demand from Tier 3 cities, rather than discounts.
During the September to October festive period, which included Onam, Navratri, Dussehra, Karwa Chauth, and Diwali, Tier 2 and 3 cities contributed 65% of total orders, proving India’s widening digital retail penetration. Notably, Tier 3 markets alone accounted for 46% of sales.
Omnichannel Fulfilment Crosses 51% for the First Time
For the first time, store fulfilment matched warehouse fulfilment (51% vs 49%), reducing delivery timelines and preventing nearly 4% of potential sales loss. This milestone reflects the rapid adoption of real-time inventory routing and retailer-led micro-warehouse models.
Digital Payments Strengthen Consumer Trust
Digital payments accounted for 53% of transactions, led by southern states such as Karnataka, with Bengaluru and Hyderabad leading metro-level contribution. However, cash-on-delivery remains popular in smaller cities, showing India’s hybrid retail behaviour.
Marketplaces & Category Trends
Insights from 60+ brands across Myntra, Flipkart, Amazon, AJIO, Nykaa, and Tata CLiQ reveal:
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Footwear surged from 7% to 33% of festive sales
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Myntra & Flipkart captured 89% of order volumes
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Average discounts dropped from 44% in 2024 to 34% in 2025
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Amazon halved returns to 8% and RTOs to 2%, setting a new benchmark
Delhi, Maharashtra, and Uttar Pradesh led order volumes, while Gujarat showed consistent growth.
A Market Maturing Beyond Discount Wars
According to Farooq Adam, Co-founder, Fynd,
“India’s e-commerce story is unfolding on its own terms built on speed, proximity, and precision… The brands that will win won’t chase discounts. They’ll design for regional realities, fulfill faster, and build prepaid trust.”
Towards a More Efficient and Profitable Digital Retail Ecosystem
The report shows that India is entering a new phase of retail evolution, prioritizing agility, omnichannel readiness, and sharper segmentation. Rather than depending on seasonal spikes, brands are now focusing on year-round operational excellence.
Globally, the study places India within a trend of cautious consumer optimism, yet uniquely driven by affordability, digital adoption, and regional diversity — positioning India as one of the world’s most dynamic e-commerce markets.
