登录查看更多内容

The Need Of The Hour: An Open Network Of Commerce

MMA Global India

Industry body architecting the new future?of?marketing.

发布日期: 2023年8月9日

Today, having an online presence has become essential for brands everywhere. An online presence for D2C brands offers numerous benefits, including expanded reach, cost-effectiveness, data-driven insights, direct customer engagement, and adaptability. It is an indispensable tool for modern businesses to thrive in the digital age.?

Building a D2C brand through a website or app, however, can involve challenges like high costs, competition, and limited reach. Due to this, using marketplaces is considered a preferable approach for driving e-commerce businesses, owing to its convenience and cost-effectiveness.

The need for an Open Network for Commerce in India arises from concerns about the concentration of market power in large e-commerce firms, leading to non-competitive behavior. It is crucial to foster an open and decentralized e-commerce ecosystem that promotes technological self-reliance, operational standardization, inclusivity for MSMEs and local businesses. A network that interconnects sellers, technology platforms, and retailers, breaking down data silos, and enabling innovation is just what is needed to enable small and medium-sized businesses thrive in a competitive market.

This calls for essential changes in the e-commerce infrastructure. A common platform for buyers and sellers across multiple e-commerce platforms, enabling small and medium businesses to access online markets without intermediaries, fostering innovation and collaboration among logistics and technology companies, and adhering to government policies and standards to increase transparency and trust.

The prominent benefits of an open network, as highlighted in our ONDC Advantage X toolkit - GTM Guide to digitise & democratise (joint initiative of MMA and GroupM) for commerce led growth are:

Removal of commissions: Spends incurred by D2C brands towards marketplace commissions will be removed as customers will be available to businesses directly.
Hassle-free logistics: Businesses will be able to choose their preferred logistics partner in real-time as opposed to getting tied up with logistics partners of big ecommerce firms.
Expand digital commerce: ONDC has the potential to expand the frontiers of digital commerce by driving greater digital penetration among buyers and sellers alike.
Cost-effective: Almost every channel has associated costs, but ONDC is the most-effective organic channel with the least associated cost.?
Bridging the gap: ONDC bridges the gap between the D2C segment and the online marketplace segment by offering a solution that combines the advantages of both - the consumer connection that comes with D2C and the necessary scale achieved in an online marketplace.?

The ultimate goal of embracing an Open Network for Commerce is to create a more equitable and dynamic e-commerce landscape in India, benefiting businesses, consumers, and the overall economy.

Watch the exclusive ONDC report unveil and panel discussion from IMPACT ‘23 Delhi edition to gain a comprehensive understanding of the ONDC ecosystem. Download the ONDC Advantage X Toolkit for a step-by-step guide to implement ONDC for your business.