Economy

E-commerce registers over 30% growth in volume and value terms during Oct-Dec 2020: Report

Prashasti Awasthi Mumbai | Updated on February 10, 2021

According to the report, the growth accelerated in light of Covid-19 and the effects of lockdown led to a significant change in consumer habits.

Unicommerce -- e-commerce focused supply-chain SaaS technology platform -- and Kearney today released a ‘Q4-2020 -E-commerce Trends Report’ for the last quarter of 2020.

The report assessed the e-commerce growth in Q4 2020 and the sector-wise analysis. It has covered trends related to the overall e-commerce growth, D2C trend, and how it affects the industry in the post-Covid-19 world.

The report’s key highlights suggested that in the last quarter of 2020, e-commerce grew by 36 per cent and 30 per cent YoY in terms of order volume and value respectively. While the average order value declined by 5 per cent in Q4-2020 as compared to the same period last year.

According to the report, the growth accelerated in light of Covid-19 and the effects of lockdown led to a significant change in consumer habits. In contrast, offline retail continues to have single-digit growth.

Last year, the e-commerce industry reported 26 per cent order volume growth in Q4-2019 vis-a-vis Q4-2018.

Emerging segments

The report noted that personal care, beauty, and wellness (PCB&W), and FMCG & healthcare (F&H), were the biggest beneficiaries. They saw growth of 95 per cent and 46 per cent YOY respectively.

FMCG & Healthcare (F&H) is one of the fastest-growing categories, with value growth of 94 per cent in Q4-20 compared to the same period last year. The substantial value growth is supported by the 46 per cent order volume growth in Q4 2020.

The report stated that the electronics segment was buoyed by homebound consumers turning towards high-end products. The category witnessed a 12 per cent YOY increase in AOV in addition to 27 per cent YOY growth in volumes and continues to drive the highest share of the e-commerce value.

The lockdowns and reluctance to venture out resulted in many first-time online grocery shoppers. This has been an important category for mainstream e-commerce players like Flipkart and Amazon to actively focus and promote the grocery business.

Tier-2 continues to drive growth

As e-commerce companies start focusing on Tier 2 and Tier 3 cities, their contribution to the overall e-commerce pie has gradually increased over the last few years. These cities accounted for a whopping 90 per cent YOY incremental volume and value growth during the quarter in review.

Commenting on the report, Kapil Makhija, CEO, Unicommerce said, “The e-commerce industry has emerged as the backbone of the retail industry, and small and big players have realized the immense potential that e-commerce holds. The e-commerce volume growth continued to accelerate in the last quarter of the pandemic hit year.”

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Published on February 10, 2021
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