Tier 2 and 3 cities contributed over half of all festive orders as e-commerce volumes rose 24 per cent year-on-year
India’s ecommerce industry closed the 2025 Diwali festive season on a steady note, recording a 24 per cent year-on-year (YoY) rise in order volumes and a 23 per cent increase in gross merchandise value (GMV), according to data from Unicommerce, an ecommerce enablement software-as-a-service (SaaS) platform.
Quick commerce emerged as the top performer, registering a 120 per cent YoY jump in order volumes, while brand websites recorded a 33 per cent increase. Marketplaces continued to dominate the online shopping landscape, accounting for 38 per cent of total transactions and posting an 8 per cent growth in order volumes compared with the previous year.
Unicommerce stated that the analysis is based on more than 150 million transactions processed via its platform, Uniware, during the 25-day festive period spanning 2024 and 2025. “The 2025 Diwali festive season ended on a steady note for India’s ecommerce sector, which recorded a 24 per cent YoY growth in order volumes and a 23 per cent rise in gross merchandise value (GMV)”, the company said in a release.
Among key product segments, fast-moving consumer goods (FMCG) led the growth, driven by rising demand for fusion sweets, dry fruit assortments, and millet-based snacks. Home decor, furniture, beauty and wellness (especially make-up and hygiene items), and health and pharma (boosted by supplement sales) also saw notable traction.
Smaller cities continued to play a central role in this digital expansion, with tier 2 and 3 regions contributing nearly 55 per cent of total orders. Tier 2 cities topped the growth charts with a 28 per cent annual rise in order volumes, followed by tier 1 cities at 24 per cent and tier 3 towns at 23 per cent, reflecting broad-based consumer participation across the country.
In terms of payment preferences, prepaid transactions increased by 26 per cent, highlighting a greater adoption of digital payments. Cash-on-delivery (CoD) orders also increased, up 22 per cent in volume and 35 per cent in GMV, indicating consumer confidence and a trend towards higher-value CoD purchases.
“Further reinforcing this growth momentum, data from Unicommerce’s logistics platform, Shipway, showed that orders were delivered faster this year, with average shipping times during the 2025 festive season 15 per cent shorter than last year,” the statement added.
