Small‑City E‑Commerce Booms While Order Values Lag Behind Metropolises

Recent data from major platforms show that cities such as Surat, Bhubaneswar and Jodhpur have witnessed a surge in the number of orders, driven by expanding internet penetration and aggressive regional marketing. However, the average spend per order remains well below the urban benchmark, reflecting limited purchasing power and a preference for essential goods. The phenomenon rests on a tension between expanding digital infrastructure and the still‑nascent logistics ecosystem in smaller markets. Payment gateways grapple with lower transaction values, while courier networks confront higher per‑unit costs, prompting firms to experiment with cash‑on‑delivery and localized warehousing. Consequences are already emerging: profit margins for e‑commerce operators thin as they subsidise delivery, and smaller merchants face heightened competition from national players. In response, several platforms are piloting micro‑fulfilment centres, a move that could reshape the retail of India's hinterland over the next twelve months.