Tier 2, 3 Cities Drive 66% of New D2C Orders

21 Apr 2026 CW Team

Tier 2 and Tier 3 cities accounted for 66 per cent of new direct-to-consumer (D2C) orders in FY 2026, according to a new analysis by Unicommerce.

The report said buyers from smaller cities also contributed 60 per cent of incremental gross merchandise value (GMV) in FY 2026 compared with FY 2025, highlighting rising demand beyond metro markets.

Overall, India’s D2C segment recorded strong growth, with order volumes rising 33 per cent and GMV increasing 32 per cent year-on-year. The findings are based on more than 400 million order items processed through brand websites on Unicommerce’s Uniware platform between April 2024 and February 2026.

Data from Shipway, the company’s logistics platform, showed return-to-origin (RTO) rates fell from nearly 39 per cent during the festive period in November 2025 to around 21 per cent by February 2026, indicating improved fulfilment efficiency and order verification.

The report also noted growing use of AI-led recommendations and chat-based interactions to improve product discovery and post-purchase engagement.

India’s D2C market, currently estimated at USD 10–12 billion, is projected to reach USD 60 billion by 2030, with future growth expected to be driven by operational efficiency, customer retention and technology-led experiences.

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