Tier-II, Tier-III cities drove 66% of new D2C orders in FY26: Unicommerce

Tier-II and III cities fuel D2C growth, contributing 66% of new orders in FY26 as ecommerce demand spreads beyond metros

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 per cent of the new D2C orders in FY26 came from buyers in Tier-II and Tier-III cities in the country.

 

The shift is also reflected in overall value growth as buyers from these markets contributed 60 per cent of the incremental GMV (gross merchandise value) in FY26 compared to FY25, showing how demand is expanding beyond metro cities. Overall, the D2C segment continued to grow, with order volumes rising 33 per cent and GMV increasing 32 per cent in FY26 over FY25.

 

The 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 over 6,000 digitally native brands, the findings highlight a 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 per cent during the festive period in November 2025 to around 21 per cent 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.

 

India’s D2C market, currently estimated at $10-12 billion, is expected to grow to $60 billion by 2030.