As metros near saturation, the real momentum in India’s e-commerce story is shifting to smaller cities and towns. Tier II and III regions, once considered peripheral markets, are now at the center of digital commerce growth. With rising smart phone usage, affordable internet, and growing familiarity with digital payments, these cities are contributing to what many analysts call the “next 60% growth frontier” in e-commerce.

What’s driving this surge is not just accessibility, but aspiration. Consumers in smaller towns are seeking the same quality, variety, and convenience as their urban counterparts. Platforms are responding with regional language support, faster delivery logistics, and curated offerings tailored to local preferences. From fashion and beauty to electronics and groceries, demand is exploding beyond big metros. As trust in online shopping grows and infrastructure catches up, these emerging cities aren’t just catching up but they’re also setting the pace for the next wave of e-commerce expansion.

E-commerce in smaller cities: The next 60% growth frontier