Tier-2 and Tier-3 cities power India's next e-commerce wave as D2C brands scale beyond metros

Smartphone penetration, UPI adoption and improved logistics are unlocking thousands of new pin codes for online retail. Shiprocket flags integrated shipping, COD and returns infrastructure as the backbone enabling D2C brands to push past metros into smaller Indian towns over the next few years.

— Filed Fri, 15 May, 2026, 18:41 IST · Source ET Small Business · Updated

Tier-2 and Tier-3 cities are driving India's next e-commerce wave, fueled by smartphone access, UPI payments and improved logistics. Shiprocket notes integrated shipping, COD and returns infrastructure is enabling D2C brands to scale beyond metros into thousands of pin codes.

Why this matters

Shiprocket continues to position itself as the logistics backbone for D2C scale-up, doubling down on small-town reach as smartphone and UPI adoption widen the addressable e-commerce market beyond metros.

Omni-channel signals steady at 57 in the last 90 days, reflecting sustained focus on cross-channel retail.