Fashion and Accessories Lead E-Commerce Sales in 2024: Unicommerce Report

In 2024, fashion and accessories emerged as the largest contributors to e-commerce sales, accounting for a significant 30% of total order volume, according to a report by Unicommerce, a prominent e-commerce enabler. Following closely, beauty, wellness, and personal care products contributed 19% to the order volume.

Rising Demand in the Fashion Segment

The report underscores the sustained popularity of casual and western wear, which dominated the fashion category. On the beauty front, essentials like face washes, body washes, moisturizers, and sunscreens led the pack. Health supplements and sunglasses also featured prominently among the most purchased items.

Tier-3 Cities Take the Lead in E-Commerce Growth

Online shopping witnessed remarkable growth from Tier-3 cities, with these regions surpassing others in terms of order volume growth. This trend highlights the increasing penetration of e-commerce platforms in previously underserved areas.

Travel Accessories and Watches Surge in Popularity

Travel accessories, including backpacks, laptop sleeves, and motorcycle gear, saw a phenomenal 200% increase in sales. Similarly, watches recorded a 100% surge, while books and gaming accessories grew by 85% and 60%, respectively, showcasing a diverse range of consumer preferences.

Deeper Discounts and Rising Average Order Values

E-commerce platforms intensified their discount strategies in 2024, offering reductions between 15% and 30%, a notable increase from the 10% to 25% range seen in 2023. Categories such as fashion, beauty, and FMCG products benefited the most from these pricing strategies.

Average Order Values (AoV) witnessed a rise across key segments. FMCG products experienced a 17% increase, climbing from ₹450+ in 2023 to ₹530+ in 2024. Electronics, home appliances, and home décor also showed upward trends, reflecting greater consumer spending.

Customer Satisfaction and Return Metrics

Customer satisfaction improved significantly as the return rate for customer-initiated orders declined from 10% in 2023 to 7.8% in 2024. However, the Return to Origin (RTO) rate, representing undeliverable orders, rose marginally from 6.2% to 7.3%. Prepaid transactions continued to dominate, accounting for 62% of total orders, with a much lower return rate (10%) compared to the 24% return rate for Cash on Delivery (CoD) orders.

The Omnichannel Revolution

The adoption of omnichannel retail solutions witnessed a 40% increase, enabling seamless integration of physical and online retail. Ship-from-store order volumes surged by 50%, highlighting a strengthened connection between brick-and-mortar stores and digital platforms.

Conclusion

The Unicommerce report for 2024 highlights the dynamic growth and evolving trends in India’s e-commerce sector. Fashion and accessories continued to dominate, contributing 30% to total sales, followed closely by beauty and personal care products. Tier-3 cities emerged as key drivers of growth, reflecting increased digital adoption in smaller towns. Categories like travel accessories and watches recorded unprecedented surges, underscoring the diversity of consumer preferences.

Deeper discounts and rising Average Order Values (AoVs) further incentivized online shopping, while innovations like omnichannel retail and ship-from-store solutions bridged the gap between physical and digital platforms. Prepaid orders gained traction due to their lower return rates, signaling a shift in consumer behavior.

As businesses adapt to these trends, the focus on customer satisfaction and sustainable growth remains crucial. With strategic investments and technological advancements, India’s e-commerce sector is poised for even greater achievements in the years ahead.