Small town India is on a spending spree ahead of the festive season, if sales data of e-commerce players, whose sales commenced Friday, is anything to go by. E-commerce players Amazon and Meesho said at least 75% of sales at their annual flagship events have come from Tier-2 and beyond cities so far. SoftBank-backed Meesho said about 85% of the 8.8 million orders it received on the first day of its Mega Blockbuster Sale came from Tier-2 and beyond cities, an 80% increase for the company y-o-y.
This can largely be attributed to the increase in overall base of small sellers. Amazon had expanded its seller base and about 50% of its 1.1 million sellers came from smaller cities, while 75% of Meesho’s 0.78 million sellers come from non-metros, with seller participation increasing 360%.
Amazon and Flipkart both said smartphones and large electronic appliances were the most sold, while Meesho said the fashion category was the most sought after. Broadly, across the three platforms, fashion, electronics and beauty and personal care products remained the top picks in the first few hours of the festive sales. Flipkart’s social commerce arm Shopsy also drew a majority of customers from non-metro cities, with apparel the most sold products.
With the 5G launch in October, smartphone searches on Amazon saw a strong double-digit growth versus last year and a 20X uplift versus an average business day. “5G smartphones saw a strong uptake alongside customers showing a preference for mid-tier to premium smartphones. Customers shopped from top brands such as OnePlus, Samsung, Xiaomi, iQOO, realme and Apple,” the company said.
For instance, the iPhone 13, launched last year, retailed on Amazon for Rs 49,999 but prices fluctuated as demand soared. Among electronics, television sets, laptops and smart watches were most picked.
Overall, Meesho had 6,000 orders every minute, while Amazon sold about 1 million unique products, during the first day of their respective sale events.
“Tier-2 and 3 cities accounted for 75% of the total customer base of the e-commerce major during its ‘Great Indian Festival’ sale,” an Amazon India spokesperson said, adding that this year saw two times more customers from Tier-2 and 3 cities as compared to last year. The company saw its single-largest day of Prime sign-ups — about 1.9X higher than last year with 68% of the memberships coming from Tier-2 and 3 cities. Even Flipkart said its Plus customers showed a “healthy growth” as compared to last year’s event. The majority of these customers were from non-metros.
Utkrishta Kumar, CXO, business, at Meesho, said, “With roughly 85% of orders and about 75% of sellers coming from Tier 2+ cities, we are humbled to have created a far-reaching impact in the deepest corners of the country.”
All three e-commerce companies’ annual sale started on September 23. It ends on September 27 for Meesho, on September 30 for Flipkart, while Amazon plans to run it for about a month till Diwali next month.