Which Part of India is Contributing The Most to E-Commerce Growth

E-commerce has seen a lot of firsts this year. New trends have come about; myths have been busted; new markets have emerged; but all of these point towards a brighter future for the e-commerce industry in general.

With no intentions of bursting any bubble, Browntape analysed some data, that points to facts which may be surprising for some and yet useful when included in the business strategy planning.

It compared data from over 700,000 orders made across multiple marketplaces and various categories in 2014 and found some notable trends.

South India Buys More than the North

As would be expected, the 5 metros in the country are also the top 5 spenders in the country. And from this, you can see that the top amongst these is South India (Bangalore, Hyderabad and Chennai) as compared to the North.

Sno City State % of total orders
1 Bangalore Karnataka 14.12%
2 Delhi Delhi 11.65%
3 Mumbai Maharashtra 6.98%
4 Hyderabad Andhra Pradesh 5.73%
5 Chennai Tamil Nadu 4.12%

 Contribution to overall e-commerce sales are as below:

  • South India – 41%
  • North India – 32%
  • West India – 21%
  • East, North east – 6%

graph-2According to eBay’s statistics, West India has the most active sellers at 46%, followed by North India at 28%.

Kolkata, the remaining metropolitan, was not in the top 10 and accounted to only about 1.32% of the total orders.

 Tier 2 Cities with Satellites Vs Without Satellites, and Tier 3

In the top 15 cities, there were as many Tier 3 cities as Tier 2 (classified according to the Sixth Central Pay Commission classification of cities.)

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Sno City State % of total orders
6 Pune Maharashtra 4.07%
7 Kanchipuram Tamilnadu 3.99%
8 Gurgaon Haryana 3.18%
9 Rangareddy district Andhra Pradesh 2.51%
10 Thane Maharashtra 2.14%
11 Gautam Buddh Nagar District Uttar Pradesh 2.09%
12 Ahmedabad Gujarat 1.63%
13 Ghaziabad Uttar Pradesh 1.52%
14 Kolkata West Bengal 1.32%
15 Jaipur Rajasthan 1.28%

Let’s drop the Government’s classification and look at these cities from a different perspective, as we can’t call most of these as tier 3:

  • Thane – just an extension of Mumbai
  • Noida, Gautam Buddh Nagar – part of Delhi NCR
  • Kanchipuram – part of greater Chennai region
  • Rangareddy district – part of greater Hyderabad

It is clear that tier 2 cities with satellites contribute more than those without satellites.

Tier 2 and 3 Cities collectively brought in more than 56% of the total orders

With more Internet connectivity and increase in DTH and pay TV penetration in India, exposure to new age gadgets and fashion is growing. Youngsters from less developed cities and districts with limited or no access to branded products are turning to online stores. COD has made it very convenient for people to pay for products even if they do not own a debit or credit card. All these factors could have played a role in this growth.


5 States to Cater to

While it’s a good idea to reach out to as large a consumer base as possible, if you had to focus your attention based on who spends more, these are the states to cater to:

  • Karnataka
  • Maharashtra
  • Tamil Nadu
  • Delhi
  • Andhra Pradesh

These make up for almost 65% of the e-commerce pie. The top 5 metros are part of these states and we have already seen the significant contribution they make to overall sales.

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5 States You can Ignore

Despite the potential of these markets, certain bigger states like the below generate less than 1% online sales each, either due to connectivity issues, laws and restrictions, or even cheating customers:

  • Kerala
  • Bihar
  • Orissa
  • Madhya Pradesh
  • Assam

Although India Post is said to be sprucing up its operations to match up to the requirements of e-commerce, solutions to issues related to e-commerce regulations and cheating customers don’t seem to be round the corner yet.

About Browntape:

Browntape helps retailers sell online on multiple marketplaces like eBay, Amazon, Flipkart, Snapdeal, etc. marketplaces in India. They provide services and software that allow retailers to either outsource their online selling business or manage things on their own using their innovative inventory and order management software

Disclaimer: This is a contributed post. The statements, opinions and data contained in these publications are solely those of the individual authors and contributors and not of iamWire and the editor(s).

For similar Native Advertising / Content Marketing service, Drop an email to Abhinav Dinesh on abhinav@wirefoot.com

  • Vissionary

    Is there any ray of hope for TRIPURA ?

    Lakhs of Educated Youths (and their families) of TRIPURA (2nd highest populous state in NORTHEAST) have been languishing in complete frustration for over a decade now (recent news on TRIPURA can be referred for details) due to lack of –> Progressive Economic policies, Meaningful development, Best of the industries and quality professional employment opportunities, Best of the class healthcare, Proactiveness in being nationally and globally competitive.

    Does anyone know why capital AGARTALA is not yet even an inch near to a tier-2 city like PUNE ?

    Does anyone know what TRIPURA have achieved (in terms of giving its educated youth much needed professional career opportunities at par with other progressive states) till date by focusing only on natural resource (rubber, bamboo, plastic) based industry, which in progressive states (e.g. Karnataka, Maharashtra) is considered as intermediary industry, while IT and High Tech industry (in Software Export) are the prime economy drivers !! Does any one know WHEN BRAIN DRAIN would be REVERSED in TRIPURA ?

    Does anyone know WHY poor and lesser educated people are still not able to live a life with self dignity – at par with those in other progressive states (e.g. An Healthcare firm or IT MNC firm not only employs Doctors, Engineers, Managers and other graduates – alongwith them there are many other supporting and maintanance staffs who get due trainigs, well paid and can make their own career as well !!).

    Does any one know HOW LONG (and WHY) people of TRIPURA (Youths especially) have to languish in backwardness when rest of the progressive states are vying for attention from top IT MNCs and High Tech firms to set up their base ??

    If tier 2 cities like PUNE, GURGAON – (with top talents from India making careers in these cities) – can achieve same through right mix of people, policies, push and willingness to embrace technology and competition – why can’t AGARTALA ??

    Hope much needed ECONOMIC VIBRANCY (like Bangalore, Mumbai, Gurgaon, Pune, Chennai, Hyderabad) is created in AGARTALA (to emerge as new SMART CYBER CITY of India!) with best of the policies and setting up of World Class Infrastructures.

    Really hope leadership in CENTER, TRIPURA Govt and Other Concerned DIGNITARIES takes a FUTURISTIC and PROGRESSIVE approach and goes BIG to put TRIPURA into national & international scheme of things and strives hard in making AGARTALA into an world class city signifying uprising India’s growing prowess!

    We really need to move forward by developing TRIPURA with world class infrastructures and bring it at par with best of the other Indian states in the shortest possible time!

    Yes – we do have logistical issues in terms of connectivity,tough terrains – which slowly but surely being overcomed with multiple links opening up through Bangladesh,Myanmar!

    Appreciating TRIPURA Govt and Center on the development works so far,would request to set higher goals and aim to make TRIPURA the new face of emerging India!

    Some of the very important issues plauging TRIPURA badly:

    1.INDUSTRY – Not a single High Tech corporate, Big MNCs – especially economy driving Service Sector (from IT, High Tech – source of higher disposable income – source of thriving economy) have a presence in TRIPURA – Need of the hour (with major connectivity projects on and due for completion in next 1-2 years) is to have many of these companies (e.g. IBM,Accenture,TCS, Infosys, Wipro,Cognizant, Tech Mahindra,HCL) set up Delivery & Consultancy centers (by facilitating them with setting up of necessary IT zones / parks – in the line of ITPL Bangalore, Electronics City Bangalore, HITEC Hyderabad, Rajiv Gandhi Infotech Park Hinjawadi Pune, DLF IT Park Chennai – with due URGENCY) – Which is a must to open up window of professional opportunities (and mass employment) for bright (More than 6 lakhs UNEMPLOYED !!) youths of the state. TRIPURA is also home to massive talent pool with combination of huge number of working professionals (working in other Metros and abroad currently), local educated youths, youths (and working professionals) from other parts of INDIA, neighboring NORTHEAST states and legal working professionals from Bangladesh and Neighboring countries! At the same time geographical proximity of AGARTALA to important BANGLADESH cities (and subsequently to other SE Asian countries) gives ample business opportunities for IT Majors to expand their client base across industrial domains (e.g. Digital Bangladesh project being envisaged by Bangladesh Govt). Does anyone know when a QUICK and DECISIVE step will be taken to make AGARTALA an epitome of IT opportunities where it would solve MOST SEVERE UNEMPLOYMENT ISSUE for lakhs of educated youths from TRIPURA ?

    2.LIFESTYLE – Not a single world class 5 star hotel (Taj, Leela, Oberoi, ITC), World class shopping mall (Phoenix Market city Mumbai, LuLu International Shopping Mall Kochi, Mantri Square mall Bangalore), multiplexes (PVR, Big Cinemas, INOX) , World class Retail chains (Walmart, IKEA, Pantaloons,Shoppers Stop, Croma, Reliance Retail etc) exists in TRIPURA – Need of the hour is to have many and which is a must for a better and modern lifestyle for both people of State as well as thousands of (domestic and international) tourists arriving in the state.

    3.EDUCATION – Not a single higher education institute of national importance (IIM, IIT, IISc, AIIMS, Symbiosis management institutes, Xavier management institutes etc …) exists in TRIPURA – Need of the hour is to have many (given the fact that a huge number of students from TRIPURA migrates to other states for pursuing Engineering, Medical and Management from best of the institutes) which is a must to bring youths at par to the ones in other part of India !! This will also help best of the brains from other parts of INDIA to know NORTHEAST (TRIPURA in particular) better!

    4.HEALTHCARE – Not a single HOSPITAL of national importance (in terms of professionalism , proven quality and trusted brand) exists in TRIPURA which is a must for those helpless people of state who has to run around and rush to Chennai and other cities for treatment even during those critical hours of life! – Need of the hour is to go PROACTIVE and INVITE best of the brands available (e.g AIIMS, FORTIS, APPOLO, MANIPAL Hospitals) to set up their HOSPITAL CHAINS at AGARTALA, at the same time highlighting enormous business opportunities they can derive from Medical Tourism Market comprising of Tourists coming from other Northeast states, Bangladesh, Myanmar, Nepal, Bhutan and other Neighboring countries. Does anyone know HOW LONG people would continue to suffer (Latest was Maleria epidemic) due to lack of best of the class healthcare in TRIPURA ?

    5.RAIL – Really hope TRIPURA gets connected to Trans-Asian Railway (TAR) Network with individual lines to MYANMAR and BANGLADESH – in the earliest possible time. Given the huge prospect of being a important Rail hub (catering to domestic and international traffic) connecting NORTHEAST to SE Asia and further to Europe, Hope AGARTALA rail station gets transformed into a world class Rail station (with best of the technologies, equipments, infrastructure and amenities) in the line of Chhatrapati Shivaji Terminus (Maharashtra) and Chennai Central station (Tamil Nadu). Also, need of the hour is to have a seamless Rail connectivity between all the NE capitals (Mumbai-Chennai like network need to be put in place for people to move across NORTHEAST easily without any hassles/security issues). Does anyone know when first Bullet Train will arrive in TRIPURA ?

    6.CITY TRANSPORT – Not the best of the Road Infrastructure and City Transport System is in place in AGARTALA! Need of the hour is to have world class technology (e.g. GPRS enabled systems) and equipments embedded in ROADS (e.g. Digital Sign boards, CCTV cameras, Automatic Traffic Signal Control System etc.) and PUBLIC TRANSPORT VEHICLES (e.g. High Tech VOLVO AC and Non-AC Buses, Double-decker Buses) ; and install a organized process (e.g. Daily, Monthly and Yearly Passes, Dress code for Bus operators) in place – with something like Ahmedabad Bus Rapid Transit system, Bangalore Metropolitan Transport Corporation, Delhi Integrated Multi-Modal Transit System! Even Lucknow, Meerut have set their eyes on Metro rail rolling shortly. Does anyone know when AGARTALA METRO will be flagged off ?

    7.AIRPORT – Really hope AAI comes up with an world class international terminal (in the line of Delhi, Hyderabad, Bangalore , Mumbai Airports) in AGARTALA with modern technology, infrastructure, equipments and best of the amenities! With growing economic linkage between INDIA and other ASEAN countries (latest being PM’s visit to Japan and Thailand) as part of INDIA’s ACT-EAST POLICY,it hardly leaves any room for imagination – the role AGARTALA going to play in near future being the hub of international trade. And SMOOTH and AROMATIC flow of INTERNATIONAL and DOMESTIC travelers (includes businessman, tourists, patients, students) will hold key to fully realize potential of ACT-EAST policy envisioned by INDIA’s leadership. Does anyone know WHEN International Airport would actually come up at AGARTALA ?

    8.WATER Ways – TRIPURA Rivers are connected to Rivers in Bangladesh. Need of the hour is to transform TRIPURA rivers into national waterways, set up World Class Inland ports (in the line of Kaladan Multi-modal Transit Transport Project) and connect them to Bangladesh River and Sea ports, which would ease TRIPURA’s landlockedness to a significant extent and improve Supply Chain and Logistical delivery of goods and services!

    9.HIGHWAY – Hope AGARTALA gets incorporated to have seamless access to SE Asia connectivity points (India-Myanmar-Thailand trilateral highway and Kaladan Multi-modal Transit). Also Need of the hour is to have Multi-lane express highway (in the line of Mumbai-Pune expressway, Delhi-Gurgaon Expressway) connectivity among all NE capitals. Can there be a Express Highway (via DHAKA) connecting AGARTALA and KOLKATA ?

    10.BUSINESS MEET – Not a single Global Investor Meet organised yet in AGARTALA (whereas in Karnataka, Gujarat and even Chattisgarh these are almost frequent affairs – Recent one being PUNJAB getting thousands of crores of investment out of a Investor Summit !!). Need of the hour is organize such event which would surely put TRIPURA in global map and radar of world class corporates!

    11.SPORTS – Not a single International stadium exists in AGARTALA to hold national and international level football and cricket tournaments (ODI, T20, Test matches, IPL, ISL, Challengers League etc) !!! Need of the hour is to set up an World Class International stadium with latest technology, infrastructure, equipments and best of the amenities (to the level of Eden Gardens Stadium, M Chinnaswamy Stadium, M. A. Chidambaram Stadium) to facilitate football and cricket crazy fans of TRIPURA (2nd Populous NE state!!), fans from neighboring NE states and neighboring countries of Bangladesh & Myanmar, budding cricketers and footballers from NORTHEAST to watch their favorite STARS in action !! This would also be a huge boost to Tourism, Relationship build up with neighboring countries, Opening up of many other avenues in industry starved NORTHEAST TRIPURA! For an instance, even though INDIA will be hosting 2017 U-17 FIFA world cup, there seems to be no chance of having few matches played in TRIPURA – though that would be the nicest thing to bring WORLD much closer to NORTHEAST TRIPURA !! Does anyone know when first international cricket match will be played in AGARTALA ?

    12.ECONOMIC ZONE – Really hope AGARTALA gets incorporated in the proposed BCIM (Bangladesh, China, India, Myanmar) corridor project and BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) project. Having close geographical proximity with important cities like DHAKA and CHITTAGONG will surely help TRIPURA leverage it’s strategic location of being India’s Gateway to SOUTHEAST ASIA! Also there is a urgent need to build economic and industrial corridors connecting all NE capitals to leverage economic potential between Northeast India and Southeast Asia. Does anyone know when a Special Economic Zone (SEZ) will come up in AGARTALA? Can there be a ECONOMIC CORRIDOR set up between AGARTALA and DHAKA ?

    13.TOURISM – There seems to be no concerted approach in Branding and Marketing TRIPURA TOURISM with a wider internet reach through Social Media network, Top travel and hospitality web sites (in the line of Maharashta Tourism, Tamilnadu Tourism, Uttar Pradesh Tourism, Kerala Tourism, Goa Tourism) even though there is a huge scope for TRIPURA in both National and International Tourism Market. Also hilly terrains can be transformed into a major hub for Adventure Tourism (in the line of Ladakh) in addition to existing eco, cultural and religious Tourism.

    14.TECHNOLOGY – There seems to be no approach in promoting and using modern technologies e.g. Internet Of Things (Combination of Physical things, Sensors, Internet, Cloud, Big Data and Real time Analytics) – which allows to overcome day to day challenges and enhance quality of public life (e.g. Wireless sensors on Bridges and Buildings for precaution against earthquake and natural disaster; Smart farms to improve Agriculture productivity; Effective Monitoring of Healthcare for patients; Managing Rivers, lakes and flood situations; Managing Traffic Congestion; Managing Air Polution; Managing Forest Degradation; Maintaining Roads and Highways; Monitoring Goods Transportation; Monitoring vehicle speed and preventing Road Accidents).

    15.SMART CITY – Hope AGARTALA gets incorporated in the SMART CITY (with a Global imprint) project envisaged by NDA Govt. Can AGARTALA lead in implementing every aspect of Global SMART CITY and set an example ?

    16.ENTREPRENEURSHIP – Does anyone know why there is no notable start up (like RedBus, Snapdeal, Flipkart) yet from TRIPURA ?

    17.NRI – There seems to be no approach to involve NRIs from TRIPURA to come up with ideas, investment for rapid economic growth of TRIPURA – whereas Karnataka, Tamilnadu have seen major contributions from NRIs.

    18. TELECOM – Internet and Telecom services are still WAY BELOW PAR in AGARTALA (compared to cities like AHMEDABAD or BANGALORE)- while country have moved on with latest technologies like 4G !! Does anyone know HOW LONG people of TRIPURA have to be deprived from – seamless HIGH SPEED Internet and Best of the class Telecom services ? Does anyone know when AGARTALA would become a WIFI enabled city ?

    Also urgent need of the hour is to complete all the existing infrastructure projects as soon as possible and identification and sanctioning of all other infrastructure projects fulfilling above infrastructure gaps without any further delay!!

    Anything less than ‘WORLD CLASS’ would only defeat the very purpose behind infrastructure development of TRIPURA under ACT-EAST Policy!!

    IMPOSSIBLE – just means I AM POSSIBLE! If India need to catch up with developed part of the world,the most strategically placed Northeast (especially TRIPURA) need to be made into a developed region in the shortest possible time!

    I strongly believe TRIPURA govt (in close co-ordination with Center, other concerned dignitaries & all corporate vissionaries) can certainly achieve this sooner rather than late, which would definitely give its people a better employment opportunities, a better healthcare, a better access to quality education, a quality lifestyle, and last but not the least a confident and connected TRIPURA leading India’s charge towards contributing to a more stable and stronger global economy!!

  • Glen

    What if there is a platform in kerala to provide cod

  • SK

    Hyderabad is in Telangana not Andhrapradesh

  • Lakshaya Sindhwani

    This data is generally skewed because its data from Browntape. Browntape is based in Goa, most of their clients would be based in bangalore/hyderabad corridor. And despite E-commerce’s vast reach, organic growth often tends to be limited geographically.
    Similar data from unicommerce (Delhi based) reveals Delhi to have a complete majority of E-Commerce sales.
    This data need to be analysed alongside the geographical distribution of the ERP system’s clients.

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  • http://aaronenvoy.tumblr.com/ Aaron Abraham

    Kerala have been given a blind eye by Snapdeal and Flipkart, COD is not available for most of the items in Kerala from Snapdeal and Flipkart, in case of Snapdeal many items are not deliverable at all to Kerala. So with this bias no wonder so low deliveries to Kerala despite it being a consumer economy in the strict sense of the word itself.

    • rahul

      govt. of kerala needs special forms for delivery of shipment from other states, all ecommerce sites have disallowed non kerala sellers from selling into kerala.