The digital marketplace has crowned a new ruler: fashion. A recent report reveals that clothing and accessories commanded a dominant 30% share of all online orders in 2024, eclipsing all other product categories. This surge underscores the growing influence of online shopping in the fashion world. Beauty and personal care products secured a respectable second place, accounting for 19% of orders, highlighting the continued demand for self-care essentials in the digital sphere.
Within the fashion arena, casual and Western styles remained the undisputed champions, capturing the hearts (and wallets) of online shoppers. In the beauty sector, everyday essentials like cleansers, moisturisers, and sun protection products reign supreme. Health supplements and sunglasses also emerged as popular purchases, suggesting a growing interest in holistic well-being and stylish sun protection.
The digital retail landscape is expanding its reach, with Tier-3 cities experiencing remarkable growth in online shopping activity, outpacing other urban centres. This expansion signals a significant shift in consumer behaviour, with online shopping becoming increasingly accessible and appealing to a broader demographic.
Beyond apparel and beauty, certain product categories experienced exceptional growth. Travel accessories, including must-have items like backpacks, laptop sleeves, and motorcycle gear, witnessed an astounding 200% sales surge. Timepieces also proved popular, with a 100% increase in sales. Books and gaming accessories enjoyed substantial growth as well, at 85% and 60% respectively, indicating diverse consumer interests within the e-commerce realm.
Strategic discounting played a key role in driving sales. Online retailers offered more enticing discounts in 2024, ranging from 15% to 30%, a notable increase from the 10% to 25% range seen in 2023. This aggressive pricing strategy was particularly evident in high-volume categories like fashion, beauty, and fast-moving consumer goods.
The report also noted an increase in average order values across various product categories. Fast-moving consumer goods saw a 17% rise, while electronics, home appliances, and home décor also experienced upward trends.
Customer satisfaction metrics painted a positive picture, with a decrease in customer-initiated returns. However, undeliverable orders saw a slight increase. Prepaid orders continued to dominate transactions and demonstrated significantly lower return rates compared to cash-on-delivery orders.
Finally, the integration of physical and online retail is accelerating. Omnichannel retail solutions are gaining traction, with a substantial increase in stores adopting such technology. This trend is further reinforced by a significant rise in ship-from-store orders, showcasing a growing synergy between brick-and-mortar and digital shopping experiences.
