Grocery, pharma, wellness products gained traction as people looked to boost immunity (starting an e-commerce business)  and stay healthy

The year 2020 got off to a normal start for the Indian e-commerce industry, but shortly thereafter, it went into a tailspin with the onset of the Covid-19 pandemic in March.

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The national lockdown that followed soon after, hit mobility, food delivery, hotel tech, movie and event ticketing, as people got into lockdown mode, staying put at home and migrant workers returned to their homes, disrupting the e-commerce supply chain that struggled to function with few staff.  (starting an e commerce business) 

Most e-commerce firms trained their focus on delivering food and hygiene products to people across the country as they were classified as ‘essential items’ by the government, which banned the delivery of non-essentials to cope with the crisis. Consequently, some e-commerce categories including grocery, pharma, health & wellness, personal care & hygiene, smartphones, electronics and work from home essentials gained traction.

Innovative models

The year brought unprecedented success to e-grocery, fresh foods and meat start-ups as they unveiled innovative business models and fostered collaborations to stay relevant to customers during the lockdown. BigBasket, iD Fresh Foods, Licious, FreshToHome and Nandu’s Chicken, for instance, saw a steep rise in orders, new customer acquisitions in droves and an increase in average order value as consumers looked for safe-to-eat, hygienic products to ward off Covid-19.  (starting an e commerce business)  

Small cities join party

Shoppers from Tier-2 cities and beyond drove this year’s festival season sales, with the number of   (starting an e-commerce business)  shoppers nearly doubling to 88 million, of which 40 million were from Tier 2 + cities. Consequently, the overall spend per customer dropped to ₹6,600 from ₹7,450 in last year’s sale, as Tier 2 + shoppers typically spend lesser than their metro counterparts.

With the need for communication and increased media consumption, mobile phones and accessories continued to account for over half of e-commerce sales during the festival period.  (starting an e commerce business)