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From Grassroots to Social Selling: How Shiprocket is Enabling Small Sellers in Tier 2 & Tier 3 Cities

February 25, 2020

4 min read

India is a developing nation with a plethora of resources and an undying zeal to innovate. Every city in India has hundreds of individuals who have brilliant ideas waiting to be explored. While some are exceptionally talented artisans, and great with handicrafts, others have an experienced hand at weaving or stitching stunning designs. We are still finding the means to deliver these creations to everyone in the country and across the world. To bring this issue to a constructive solution, we have Shiprocket – India’s leading eCommerce shipping solution. Let’s see how Shiprocket is enabling these sellers and buyers for Bharat commerce in tier 2& tier 3 cities. State of eCommerce in Tier 2&3 Cities

Beginning from marketplaces like Amazon and Flipkart to independent sellers on websites and social media, sellers are making efforts to penetrate deeper into the eCommerce market. With initiatives like Digital India and Startup India performing in full swing, more and more sellers are trying to dive into this untapped market. Furthermore, they are building a niche for their business. 

According to a report by IBEF, India is the fastest-growing market for the eCommerce sector, with an expected growth of approximately 1,200 percent by 2026. Also, eCommerce is attracting sales from tier 2 and 3 cities where people may not have as much access to brands. 

As per the 2011 census, rural India has an approximate population of 906 million, out of which, around 194.07 million internet users as of September 2018. Therefore, with such immense internet penetration, eCommerce companies must take this as an opportunity and sell their items widely. 

Internet users in India by IBEF
Source – IBEF

As many eCommerce sellers are making this move, they require capable courier partners that have a reach in these areas. For a long time, only India Post has been able to provide that kind of range but with many restrictions. However, with the advent of courier aggregators and shipping solutions like Shiprocket, sellers now have an ample number of options to deliver these products via various modes. 

How are Women Contributing to this Scenario?

As we know, the future is gender-neutral. Both men and women are moving shoulder to shoulder in terms of entrepreneurship and contribute immensely to growth. The eCommerce industry sees no less of a trend. 

According to Shiprocket, there are over 25% of women sellers retail in Fashion & Apparel, health and fitness products, jewelry and fashion accessories, home and lifestyle products, and food and groceries. 

A report by Statista states that around 13% of people buy groceries from an online store. With more women taking up this venture, we can take this trend forward to tier 2 and tier 3 cities. 

However, only 4% of these women sellers can carry out more than 5000 orders a month. Majorly, these women are only able to ship around 0-50 orders every month. This could be due to a lack of resources to promote their product or ship them on time. 

Hence, with contests like Aarambh 2020 and 2021, Shiprocket is taking steps to ensure that women entrepreneurs take the leap of faith and make it big in the start-up industry.

Understanding the Impact of Shiprocket on eCommerce Shipping in these cities

Shiprocket works closely with over 17+ courier partners at rates starting from Rs. 23/500g to ensure that our clients can deliver to every nook and corner of the country. Along with this, we provide COD as a mode of payment to sellers. Moreover, our Early COD feature lets you receive your COD amount within 2 days rather than the 9 days wait. We have incorporated functions such as pickup escalations and multiple pickup addresses to ensure that your product is delivered on time. 

Here is what our Shiprocket data tells us in terms of shipping to tier 2 and tier 3 cities and promoting Bharat commerce among our sellers. 

Around 50-70% of Shiprocket’s order contribution comes from small and medium sellers selling in tier 2 and 3 cities. The major channels used for selling are either social media channels like Facebook, Whatsapp, and Instagram or via their website. 

The top-selling products in these cities are mobile covers, organic charcoal, Ayurvedic tablets, T-shirts, and sarees. 

Shipments to Tier 2 cities have already shown a 10% growth YoY. This trend is expected to see a rise in the coming year. 

Final Thoughts

With so many rich insights at our disposal, we can see that Bharat commerce is on an upward trend. Furthermore, shipping solutions like Shiprocket can help complete the end-to-end eCommerce process for these sellers. With tier 2 and tier 3 cities becoming an integral aspect of eCommerce business strategy, you must incorporate it too. 

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