PwC India has released a report offering insights on the dynamics of e-commerce in India, particularly focusing on the shopping behaviour of consumers in tier 2 and tier 3 regions.In recent years, approximately 12.5 crore Indians have adopted online shopping, with a significant number from Tier 2, 3 and 4 cities. Online shopping offers convenience, especially in areas where access to the latest products in physical stores is limited. According to the report, these consumers are driving the retail revolution in the country.“The next phase of growth for e-commerce will be driven by the new digitally savvy consumers of Tier 2, 3 and 4 cities in India. In contrast to urban dwellers, these individuals, constrained by limited access to physical stores and brand choices, consider online shopping a gateway to fulfil their aspirations,” said Somick Goswami, partner and business transformation leader, PwC India.The report noted that, with increasing financial independence, women in India exhibit individualistic shopping behaviour across geographies.The report was based on an online survey of 2,100 people, 100 qualitative interviews and 400 in-person interviews across India with experts and industry partners.Below are some key findings from the report:Urban-Rural DisparityA significant shift is observed in the shopping behaviours of consumers in Tier 2, 3 and 4 cities, compared to their urban counterparts. While urban dwellers are enticed by the perennial discounts and convenience of online shopping, consumers from the rest of India are driven by factors such as limited product availability and stockouts in local offline stores.App PreferenceOver 60% of surveyed respondents prefer shopping via mobile apps due to ease of navigation, user-friendly interfaces and vernacular support, highlighting the importance of app-based platforms in India's e-commerce landscape. There was a preference for marketplace apps since they cater to many categories.Social Media InfluenceSocial media platforms play an important role in driving product trials, with 62% of users trying products after seeing them on platforms like Facebook and Instagram. Urban and rest of India consumers exhibit differing preferences in social media channels for product discovery and trials.YouTube emerged as a preference for consumers when it comes to a reliable platform (discovery, information, usage experience and unboxing videos) for making buying choices.Payment PreferencesWhile both urban and rest of the Indian consumers display comparable acceptance of UPI payments, cash on delivery remains the preferred option among the latter to minimise fraud risks. Generation X from the rest of India prefers card transactions for mid-high value purchases, citing transaction safety as a key factor.Category PreferencesThe report examines specific category preferences, highlighting trends in fashion, sports and fitness, electronics, home and kitchen, beauty and personal care, health and wellness, and grocery segments. In these categories, urban dwellers prefer online shopping for its quick delivery, even if it means paying a premium. In contrast, in the rest of India, consumers are more focused on finding the best deals and discounts online.Fake reviews of health and wellness products deter over 42% of rest of India shoppers from making purchases in this category.“The report emphasises the need for tailored e-commerce experiences to resonate with diverse users across India. A human-centred approach, coupled with localised strategies and inclusivity, is crucial for success,” said Prateek Sinha, partner and leader, design and experience consulting, PwC India.