Online shoppers from Tier II and III Cities Spend 16% of their Income on Online Shopping: CMR Study

The top three triggers for online shopping include attractive prices (57%), convenient return and exchange processes (57%) along with irresistible offers (49%). 

DQW Bureau
New Update
Online shopping

Online shopping

According to a new consumer study from CyberMedia Research (CMR), India's leading technology market research and advisory firm, Indians from Tier II cities and beyond spend an average of 2 hours and 25 minutes per week shopping online, spending approximately 16% of their income. Tier II cities, including Guwahati, Coimbatore and Lucknow amongst others, lead in terms of time spent shopping on eCommerce. Amongst Tier I cities, Bengaluru leads with the maximum of 4 hours and 2 minutes weekly on online shopping. 


According to Prabhu Ram, Head- Industry Intelligence Group, CyberMedia Research (CMR), “The wide range of choices, convenience, and comfort provided by eCommerce has empowered emerging young consumers in Aspirational India (Tier II, Tier III cities and beyond) to shop more online, and to fulfil their aspirations. Major players like Amazon and Flipkart, niche market players such as Meesho and others, and conglomerates like Tata and Reliance are fiercely competing in these markets. Our research emphasizes that Amazon, with its extensive and enduring presence across India, has the consumer trust and is their preferred choice.” 

The top three triggers for online shopping include attractive prices (57%), convenient return and exchange processes (57%) along with irresistible offers (49%). 

Here are some key highlights from the study: 


The rise of the online shopper 

Women entrepreneurs and others spend 149 hours annually on eCommerce. 29% of them purchased value for money smartphones (INR 15,000 to 20,000) online.

Gen Z shops more frequently online (51%) than Millennials (47%).

Two out of three consumers have spent up to Rs 20,000 on online shopping in the past six months. Average spend on online purchase in last 6 months by Tier II buyers (INR 20,100) is nearly on par with the online spend by Tier I buyers (Rs 21,700). Average spend is the highest in Mumbai (Rs 24,200). Nagpur and Coimbatore also show similar growth trends in online shopping (Rs 21,600). 

62% purchase clothing and accessories online, while 54% purchase electronics and electronic gadgets online. In Nagpur (81%) purchase electronics and electronic gadgets online. Coimbatore(62%) and Bhubaneswar (62%) show similar trends.

Among electronic gadgets, top three products bought online are:

Smartphones (37%)

Headphones / Earphones (23%)

Smartbands / Smart Watches (21%).

The top three triggers for online shopping are:


Attractive prices (57%) 

Convenient return/exchange processes (57%)

Attractive offers (49%)

Attractive prices (75%)


Convenient return/exchange processes (73%) are key purchase motivators in Coimbatore. Convenient return/exchange processes (64%) and brand trust and reliability (60%) are key for those in Lucknow.

86% rely on influencers' or publishers' reviews to make their purchase decisions. Notably, males appear to follow influencers more diligently (90%) than females (80%).

Around two-thirds of online users search (70%) rather than browse (30%) while buying accessories. Consumers typically make their buying decisions prior to visiting an online shopping platform.

Consumer Electronics: Online Shopping Trends 


5G smartphone adoption is gaining traction. 57% smartphone users feel 5G compatibility to be highly important in their next smartphone purchase. An overwhelming 62% of Tier II buyers are prioritizing 5G-capable smartphones. 


Smartphone premiumization is gaining ground, with 24% buying premium smartphone online (Rs 20,000). Only 2% have bought affordable smartphones (Rs 7,000). 

Among women, battery life and fast charging (68%), audio quality (66%), camera (63%) and storage (63%) drive smartphone considerations. 

For mobile gamers, fast charging (67%) and long battery life (63%) are key. 



Anytime, anywhere work (61%) and learning (58%) drive laptop sales.



Battery life (68%), 5G (56%) and OS (53%) drive purchase considerations. 

Wireless Earphones

Wireless earphones (up to Rs 5000) are predominantly preferred online (61%), with preferred features, being volume control (81%) and built-in microphone (80%). 

Smart Watches/Smart Bands

Activity tracking (66%), BP monitoring (57%), and voice control (47%) are most sought features. 

Choice of e-Commerce Platforms

Amazon (73%) is the most preferred, followed by Flipkart (70%), Meesho (30%),  JioMart (20%), and others.

63% of Amazon users report high satisfaction, followed by 52% for Flipkart and, 46% for Reliance Digital. 

Amazon is favored by its users for its attractive prices (54%), easy return / exchange process (52%), brand trust (40%) and convenience of shopping across pin-codes in India (38%). Over the past six months, 73% consumers from both Tier II and Tier I cities have shopped at Amazon. 

“In a large, diverse market such as India, both online and offline retail will continue to co-exist. Our survey reveals the growing comfort and delight of online consumers with the post-purchase support for large consumer durables, including, fast delivery and swift installation. As consumers continue to gain digital fluency, the eCommerce boom will also significantly benefit small business owners as well. This will contribute to the rise of India’s trillion-dollar internet economy,” added Sugandha Srivastava, Senior Manager, Industry Consulting Group (ICG), CMR.