India’s direct-to-consumer (D2C) brands recorded a 31.4% year-on-year increase in shipment volumes during the opening phase of the 2026 festive sales, according to logistics technology platform ClickPost. Shipments rose to 4.10 million from 3.12 million in the comparable period last year, with Tier 3 cities accounting for 45% of shipments. Tier 2 cities contributed another 22%, highlighting the growing importance of smaller markets to brands selling directly through their own online storefronts.
The findings are based on a fixed cohort of 200 D2C brands that shipped more than 500 forward orders during the comparable festive-sale periods in both 2025 and 2026. The report also found that prepaid shipments grew faster than cash-on-delivery (COD) orders, while median order values remained relatively stable. However, the increase was not uniform across businesses, and ClickPost cautioned that the 2026 comparison period included a full weekend, unlike the midweek window in 2025.
Key Takeaways
- Shipment growth: D2C shipment volumes increased 31.4% year-on-year to 4.10 million from 3.12 million.
- Tier 3 dominance: Smaller Tier 3 cities accounted for 45% of shipments on ClickPost’s network.
- Tier 2 contribution: Tier 2 cities represented another 22%, bringing the combined share of Tier 2 and Tier 3 markets to approximately 67%.
- Prepaid momentum: Prepaid shipments grew 47%, compared with 27% growth in COD shipments.
- Higher prepaid share: Prepaid orders accounted for 52% of shipments, up from 46% a year earlier.
- Uneven performance: The median brand grew around 19%, while more than one-fifth of the tracked brands experienced declines exceeding 25%.
- Comparison caveat: The 2026 period included a full weekend, which may have contributed to the year-on-year increase.
D2C Shipments Rise to 4.10 Million During Festive Sales
The opening phase of India’s 2026 festive shopping season delivered a strong increase in shipments for the D2C brands tracked by ClickPost.
The company’s analysis covered 200 brands with more than 500 forward shipments during both comparison periods. The cohort recorded 4.10 million shipments in 2026, compared with 3.12 million during the corresponding period in 2025.
| Metric | 2025 comparison period | 2026 festive period |
|---|---|---|
| Shipment volume | 3.12 million | 4.10 million |
| Year-on-year shipment growth | — | 31.4% |
| Tier 3 share of shipments | — | 45% |
| Tier 2 share of shipments | — | 22% |
| Prepaid share of shipments | 46% | 52% |
The increase suggests that festive demand extended beyond large online marketplaces to brands selling through their own digital channels.
D2C businesses typically operate their own websites or branded storefronts, allowing them to control elements of the shopping experience, customer communication and post-purchase engagement. They may also sell through marketplaces, but the shipment analysis focuses on the participating brands’ tracked orders rather than the entire Indian ecommerce market.
The report does not establish that all D2C brands experienced similar growth. Instead, it offers a snapshot of the businesses included in ClickPost’s sample.
Why Tier 3 Cities Account for 45% of D2C Shipments
The most striking geographical finding is the contribution from Tier 3 cities, which accounted for 45% of shipments on ClickPost’s network during the period.
Tier 2 cities added another 22%. Together, these smaller urban markets represented roughly two-thirds of the shipments in the sample.
| City category | Year-on-year shipment growth | Share of total shipments |
|---|---|---|
| Tier 1 cities | 37% | Not specified in the reported breakdown |
| Tier 2 cities | 27% | 22% |
| Tier 3 cities | 34% | 45% |
The figures indicate that smaller cities are important not only as emerging markets but also as a substantial part of the existing D2C customer base.
Several factors can support online shopping outside major metropolitan areas, including broader internet access, digital payment adoption, access to branded products and the ability to order goods that may not be available in nearby physical stores.
For D2C companies, direct online sales can help them reach consumers across a wider geographical footprint without depending exclusively on physical retail expansion.
However, the report does not isolate how much of the increase came from new customers, repeat purchases, promotional offers or changes in the product mix. Those factors would require additional data to assess individually.
Metro Demand Is Growing Too
Although smaller cities accounted for the largest combined share of shipments, Tier 1 cities recorded the fastest growth among the three reported city categories.
Shipments to Tier 1 cities increased 37% year-on-year, compared with 34% in Tier 3 cities and 27% in Tier 2 cities.
This suggests that festive-season D2C growth was not simply a shift away from metropolitan markets. Demand increased across both large urban centres and smaller cities.
For brands, this creates a more complex fulfilment challenge. Companies need to maintain reliable delivery networks in major cities while reaching customers in locations that may have different delivery distances, service availability and return logistics.
The findings also suggest that brands should avoid assuming that one city category will account for all future growth. The relative contribution of each market will depend on product categories, pricing, customer acquisition and delivery capabilities.
Prepaid Orders Outpace Cash on Delivery
Another important trend is the rise in prepaid shipments. ClickPost reported that prepaid shipments grew 47% year-on-year, compared with 27% growth for COD orders.
As a result, prepaid shipments accounted for 52% of the total in the 2026 comparison period, up from 46% a year earlier.
| Payment metric | 2025 | 2026 |
|---|---|---|
| Prepaid share of shipments | 46% | 52% |
| Prepaid shipment growth | — | 47% |
| COD shipment growth | — | 27% |
| Median prepaid basket value | — | ₹1,044 |
| Median COD basket value | — | ₹870 |
Prepaid orders are generally paid for before delivery, while COD orders are paid for when the shipment arrives. A higher prepaid share can improve cash-flow visibility for merchants and reduce the uncertainty associated with collecting payment at the doorstep.
It may also reduce some operational complications associated with unsuccessful COD deliveries. However, the report does not establish that the increase in prepaid shipments automatically led to lower return-to-origin rates or higher profitability.
The payment mix can vary considerably by product, customer segment and brand. Some shoppers may prefer COD because they want to pay only when the product arrives, while others may choose prepaid transactions because of convenience, trust in a brand or payment incentives.
The data show a shift in the mix of orders, but they do not identify a single cause for that change.
Order Values Remain Relatively Stable
Despite the increase in shipment volumes, median basket values changed little, according to ClickPost’s analysis.
The median prepaid basket value was ₹1,044, while the median COD basket value was ₹870. The difference indicates that prepaid orders had a higher typical basket value in the tracked sample.
Median values are useful because they describe the middle order in a distribution and are less affected by unusually large purchases than an average can be. They do not, however, reveal the full spread of spending across customers.
The relatively stable basket values suggest that the shipment increase was primarily associated with more orders rather than a major rise in the amount spent on each order.
For brands, this distinction matters. Higher shipment volumes can increase sales opportunities, but they also create additional picking, packing, shipping, customer-service and returns work. The financial benefit depends on the contribution margin after discounts, fulfilment expenses and other costs.
The report does not provide enough information to calculate the additional revenue or profit generated by the shipment increase.
Growth Is Uneven Across D2C Brands
The overall 31.4% increase masks considerable variation among individual businesses.
ClickPost reported that around half of the brands in its cohort recorded shipment growth exceeding 25%, while roughly one-third grew by more than 50%. The strongest performers nearly doubled their shipment volumes.
At the other end of the distribution, more than one-fifth of brands experienced declines exceeding 25%. The median brand recorded growth of approximately 19%, below the cohort’s overall shipment growth rate.
This difference between the aggregate and median figures is important. The aggregate reflects the combined shipments of the participating businesses, while the median describes the midpoint of brand-level growth rates. A smaller group of strong performers can therefore have a meaningful effect on the overall result.
For businesses that experienced weaker growth, festive competition, product demand, marketing efficiency and fulfilment capacity may all be relevant areas to examine. The available data do not establish which factors explain the performance of individual brands.
The figures also caution against interpreting a sector-wide growth rate as a forecast for every D2C company.
East India Emerges as the Fastest-Growing Region
ClickPost identified East India as the fastest-growing region in the comparison period, with shipment volumes increasing 24.3% year-on-year.
North, South and West India recorded growth in the range of 4% to 7%, according to the report.
The result points to differences in regional performance during the early festive window. It could reflect variations in demand, brand distribution, customer activity or the composition of the tracked businesses, but the report does not establish a single explanation.
ClickPost said the remainder of the festive period and activity through November would help determine whether East India’s performance represents a longer-term shift in D2C adoption or a temporary seasonal increase.
That distinction matters for brands deciding where to expand marketing, inventory and delivery capacity. A short-term spike may require a different response from sustained growth across several shopping periods.
What the Numbers Mean for D2C Brands and Logistics Companies
Higher shipment volumes can create opportunities for brands, but they also place additional pressure on logistics operations.
Companies must forecast demand, position inventory, manage courier capacity and keep customers informed about delivery timelines. These tasks become more complicated when orders come from a geographically diverse customer base.
The large share of Tier 2 and Tier 3 shipments means that fulfilment strategies need to account for smaller cities rather than focusing exclusively on major metropolitan areas.
The increase in prepaid shipments may also influence payment reconciliation and cash-flow planning. At the same time, COD remains a substantial part of the order mix, meaning companies still need processes for payment collection and unsuccessful deliveries.
For logistics technology providers such as ClickPost, the expansion of D2C shipments increases the importance of shipment visibility, carrier management, delivery performance tracking and returns handling. However, the report does not quantify how much additional business ClickPost itself gained from the festive shipment increase.
The Bigger Picture
ClickPost’s findings show that India’s D2C festive-season activity is expanding across city categories, with Tier 3 markets accounting for the largest share of shipments in the tracked sample. The rise in prepaid shipments adds another dimension to the trend, while the relatively stable median basket values suggest that the increase was more closely associated with order volume than a sharp rise in spending per order. Yet brand-level results varied significantly, so the overall growth rate does not describe every business equally.
The next test will be whether the early festive momentum continues through the rest of the shopping season and into November. Brands will need to manage demand across a broader delivery footprint while keeping fulfilment costs and service quality under control. Because the comparison periods were not identical in their day-of-week composition, the reported 31.4% increase should also be interpreted with that limitation in mind.
Frequently Asked Questions
1. How much did D2C shipments grow during India’s 2026 festive sale?
ClickPost reported a 31.4% year-on-year increase in shipment volumes among its tracked cohort, rising from 3.12 million to 4.10 million.
2. What share of D2C shipments came from Tier 3 cities?
Tier 3 cities accounted for 45% of shipments on ClickPost’s network during the reported period. Tier 2 cities contributed another 22%.
3. Which city category recorded the fastest shipment growth?
Tier 1 cities recorded 37% year-on-year growth, followed by Tier 3 cities at 34% and Tier 2 cities at 27%.
4. Are prepaid orders growing faster than COD orders?
Yes. Prepaid shipments grew 47% year-on-year, compared with 27% growth in cash-on-delivery shipments. Prepaid’s share increased from 46% to 52%.
5. Did all D2C brands benefit from festive demand?
No. Around half of the brands in the sample grew by more than 25%, while more than one-fifth experienced shipment declines exceeding 25%. The median brand grew by around 19%.
6. Is the 31.4% growth figure directly comparable with 2025?
Not completely. ClickPost cautioned that the 2026 comparison period included a full weekend, unlike the midweek period in 2025. This difference may have contributed to the increase.
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