Mumbai, Apr 20: India’s smaller cities are driving the next phase of growth for direct-to-consumer (D2C) brands. According to Unicommerce’s latest D2C market insights, nearly 66% of the new D2C orders in FY 2026 came from buyers in Tier 2 & 3 cities in India.
This shift is also reflected in overall value growth. Buyers from these markets contributed 60% of the incremental GMV in FY 2026 compared to FY 2025, showing how demand is expanding beyond metro cities, into a wider, more distributed customer base.
Overall, the D2C segment continued to grow with order volumes rising 33% and GMV increasing 32% in FY 2026 over FY 2025.
This analysis is based on over 400 million order items processed through brand websites via Unicommerce’s flagship platform Uniware between April 2024 and February 2026.
With insights from 6000+ digitally native brands, the findings highlight a clear shift in India’s online shopping landscape, with demand rapidly expanding beyond metros into a more geographically distributed base.
As this growth spreads across geographies, brands are also improving how they fulfil and deliver orders. Data from Shipway, Unicommerce’s logistics platform, shows that return-to-origin (RTO) rates declined from nearly 39% during the festive period in November 2025 to around 21% by February 2026. While RTOs usually rise during festive periods due to higher order volumes, increased first-time buyers, and greater reliance on cash-on-delivery (COD), the post-festive decline in RTO rates points to sustained delivery improvement, driven by stronger order verification and more efficient delivery execution.
At the same time, technology is playing a larger role in shaping how customers shop. From product discovery to post-purchase engagement, AI-led recommendations and chat-based interactions are helping brands create more personalised and relevant experiences.
India’s D2C market, currently estimated at $10–12 billion, is expected to grow to $60 billion by 2030. The ecosystem is now entering a more mature phase where brands will be defined by how efficiently they operate, retain customers, and deliver consistently high-quality experiences, with technology playing a central role in enabling agile, flexible operations that adapt to evolving customer needs.
