Amazon India’s annual Great Indian Festival started in 2024 with a record-breaking start, particularly from customers in smaller cities. In the first 48 hours of the sale, 80% of customer visits came from tier-2 and beyond cities, signalling a growing shift in e-commerce activity beyond metropolitan areas. The sale, which began on September 27 with early access for Prime members, recorded an impressive 11 crore customer visits, with the majority hailing from non-metropolitan regions.
The surge in demand from tier-2 and tier-3 cities shows the increasing penetration of e-commerce platforms like Amazon in regions previously dominated by offline retail. The sale of smartphones, televisions, and fashion items witnessed significant traction, with over 75% of smartphone purchases and about 80% of TV orders coming from smaller cities. Additionally, these regions drive over 60% of sales in the fashion and beauty segment, reflecting a broadening of consumer tastes and growing purchasing power in India’s interior towns.
Amazon also reported that small and medium-sized businesses (SMBs) played a crucial role in sales success. Over 1,500 units were sold per minute by SMBs, and more than 8,000 sellers achieved over ₹1 lakh in sales during the first two days of the event. Furthermore, 20,000 sellers, including women entrepreneurs, artisans, and weavers, saw their sales double compared to average daily transactions. Interestingly, over 65% of the sellers receiving orders were from tier-2 and tier-3 cities such as Moradabad, Saharanpur, and Bikaner, further emphasizing the rise of smaller urban centres as key players in India’s e-commerce ecosystem.
This trend of increasing online shopping from smaller cities is a testament to improving digital infrastructure, higher internet penetration, and changing consumer behaviour nationwide. Platforms like Amazon have significantly benefited from these changes, as they can now reach a more diverse and widespread customer base. Additionally, the festive season and attractive deals have always been a significant period for e-commerce companies to tap into the heightened demand.
As Amazon continues to cater to customers in these expanding markets, the focus on smaller towns is expected to strengthen India’s e-commerce landscape, driving growth for the platform and the small businesses and artisans that thrive within it.
