Smaller cities are emerging as stronger performers in the delivery networks serving India’s direct-to-consumer (D2C) businesses, recording better on-time fulfilment rates than major metropolitan markets during the 2026 festive shopping season. Tier 2 and Tier 3 locations achieved an on-time delivery rate of 83 per cent, against 78 per cent in Tier 1 cities, according to logistics technology company ClickPost.
The findings, drawn from an analysis of more than 80 million orders, come against the backdrop of a 45 per cent year-on-year increase in gross merchandise value (GMV) for D2C brands during the pre-Diwali period. Daily shipment volumes grew 27 per cent, indicating that the increase in transaction value was considerably higher than the growth in order activity.
Delivery performance improved across all three city categories. Tier 3 markets recorded the sharpest improvement, with on-time deliveries increasing from 74 per cent in 2025 to 83 per cent in 2026. Tier 2 cities moved up from 76 per cent to 83 per cent, while metros improved from 71 per cent to 78 per cent.
The improvement was also reflected in overall fulfilment outcomes. Failed delivery attempts accounted for 21 per cent of shipments, compared with 22 per cent in the previous year. Return-to-origin (RTO) rates, which track shipments sent back to sellers, declined from 11 per cent to 10 per cent.
Delhi-NCR Leads On Delivery Speed
While smaller cities performed better on delivery reliability, the Delhi-NCR region recorded the shortest average delivery timelines among the markets covered in the analysis. Shipments took approximately 35 hours in Delhi, 38 hours in Noida, 43 hours in Gurugram and 45 hours in Faridabad.
Other major markets recorded longer delivery durations. Bengaluru averaged 47 hours and Mumbai 49 hours, while Chandigarh and Agra reported average timelines of approximately 52 hours and 54 hours, respectively. Lucknow, Jaipur and Hyderabad recorded delivery times of around 57 hours.
Across the country, the average time taken to deliver shipments declined from more than three days to approximately two-and-a-half days. The findings point to improvements in fulfilment beyond the largest consumption centres, an important development as online brands expand their reach into smaller markets.
Festives Shopping Spreads Across A Longer Window
The growth in shipments was not restricted to the final days before Diwali. The 2026 festive calendar, which included Dussehra on October 21, Karwa Chauth on October 29 and Diwali on November 8, created an 18-day period of closely spaced shopping occasions.
ClickPost identified more than 10 high-volume shipping days in late October alone. Each matched or exceeded the previous year’s highest single-day shipment volume. In 2025, demand had been more concentrated in the week immediately preceding Diwali.
This shift towards a longer shopping period means retailers and logistics operators have to accommodate sustained demand across several festive occasions, rather than build capacity primarily around one major sales peak.
The increase in GMV relative to shipment growth also indicates a rise in the value of purchases. Luxury fashion, skincare, wellness and jewellery were among the categories contributing to larger shopping baskets during the period.
Brands bring faster fulfilment to their own platforms
D2C companies are also expanding faster delivery options through their own websites and applications. The proportion of orders fulfilled through hyperlocal delivery on brand-owned platforms increased from 2.6 per cent in 2025 to 5 per cent in 2026.
Snitch, Decathlon, FirstCry and Pepperfry are among the brands extending quicker fulfilment options across their product categories. These include 60-minute fashion deliveries, two-hour delivery of sports equipment and furniture fulfilment within 24 hours.
The development indicates that faster delivery is becoming part of the service proposition on brand-owned channels, rather than being confined to third-party quick-commerce platforms.
Prepaid Transactions Gain Ground Across Categories
Advance payments accounted for 52 per cent of D2C shipments during the festive period, compared with 50.3 per cent in 2025. Petcare recorded the largest year-on-year increase in prepaid adoption at 9.8 percentage points.
Home decor followed with a six-percentage-point increase, while food and beverages registered a rise of 4.7 percentage points. In fashion, prepaid transactions represented 61 per cent of orders.
Cosmetics continued to show a greater reliance on cash on delivery, with the payment method accounting for 52 per cent of transactions in the category.
Beauty Leads Volumes, Jewellery Sees Higher Order Values
Beauty and personal care remained the largest D2C category by order volume, recording growth ranging from 33 per cent to 39 per cent across city tiers. Fashion also registered broad-based growth, with Tier 3 markets reporting a 33 per cent increase in orders. Tier 2 cities and metros each recorded 29 per cent growth.
In terms of spending, jewellery and nutrition and wellness recorded increases in average order values (AOV) for prepaid purchases. Jewellery’s prepaid AOV rose 7.4 per cent year-on-year to Rs 5,773, while nutrition and wellness registered an 11.1 per cent increase to Rs 936.
The category-level numbers underline the contrasting trends in the festive market: beauty and fashion are driving order volumes, while jewellery and wellness are seeing higher average spending per prepaid transaction.
