The report states that prepaid average order value (AOV) grew by 12 per cent during the Valentine’s Day sale period
With unified payments interface (UPI) being the preferred prepaid payment mode, prepaid orders have outnumbered cash-on-delivery (COD) orders for the first time in four years during the Valentine’s Day sale. A report by GoKwik has revealed that during the Republic Day sale this year, prepaid orders surpassed COD by 11 per cent and in the recent Valentine’s Day sale, they accounted for 55 per cent of total orders, up from a 50:50 split last year.
As per the report, UPI remained the preferred prepaid payment mode, accounting for 46 per cent of prepaid orders during Valentine’s sales—a four per cent increase from last year. The growing acceptance of credit-based payments was also notable, with a seven per cent contribution, up by three per cent from last year.
A shift in shopping behaviour emerged in tier three cities this year. While shoppers here have historically leaned towards COD purchases for high-value items – this time, they purchased high-value items on prepaid, with prepaid average order value (AOV) rising from Rs 1074 to Rs 1211 during the Valentine’s sale period. The report stated that tier one and tier two cities continued to see stronger prepaid adoption, indicating a nationwide transformation in online shopping behaviour during sale periods.
“We started seeing this trend during the festive season where prepaid orders increased by a significant margin yet COD continued to be the dominant preference amongst shoppers. For the first time in four years, we are observing prepaid orders overtaking COD. This is a significant milestone led by UPI’s increasing popularity coupled with the product interventions and offerings that we have enabled on these brands via our checkout,” stated Chirag Taneja, Co-founder and Chief Executive Officer (CEO) of GoKwik.
Prepaid AOV also grew by 12 per cent during the Valentine’s Day Sale period, while COD AOV remained a constant trend similar to the Republic Day sale period, as per the report. Valentine’s Day sale period saw a 33 per cent surge in order volume. Beauty contributed 35 per cent to this growth, fashion 27 per cent and healthcare 11 per cent. 41 per cent of these orders came from tier three cities, 31 per cent from tier one and 26 per cent from tier two cities, the report added.
