ONDC: A Level up in the eCommerce Ecosystem in India

The Open Network for Digital Commerce (ONDC) is an explicit eCommerce network based on an open protocol. It will facilitate local commerce across domains like grocery, food delivery, restaurant booking, and travel, among others, to be enabled and involved by any network-driven application.

The platform wants to generate new business opportunities and reduce online monopolies. This scenario can be achieved by backing micro, small, and medium traders and assisting them in getting on digital platforms. It was introduced by the Department for Promotion of Industry and Internal Trade and enabled by the Ministry of Commerce and Industry.

How Open Network for Digital Commerce (ONDC) Works?

The ONDC will deliver equal opportunities to all market players and consumers. An unbiassed eCommerce platform will help set clear policies for cataloging, vendor matching, and price detection on an open-source platform, such as the Unified Payments Interface (UPI).

So, sellers and buyers can now transact online on the ONDC platform regardless of whether they are involved in any explicit eCommerce business. For example, even if a seller Z is listed on platform C, while the end-customer is listed on platform D, the end-customer can directly buy items of seller Z without being listed on platform C right from the ONDC platform.

What is the Importance of India’s Open Network for Digital Commerce (ONDC)?

ONDC is projected to digitize the complete value chain, regulate operations, stand in addition of more suppliers, offer competence in logistics, and enhance value for end customers.

Once the ONDC gets realized and authorized, all eCommerce players across India will have to run businesses leveraging the same procedures, similar to Android-based mobile devices, notwithstanding the brand.

This scenario would enhance small-sized online retailers and new online business entrants by accompanying equal exploration, operability, and inclusiveness in business operations. It will enable suppliers and end customers by ending the monopoly of massive players like Amazon and Flipkart to steer innovation and revolutionize businesses in retail, grocery, food, mobility, and sales of other products online.

Small and medium-sized businesses comprehend to gain from the transparent policies, fewer investments, and a lower rate of business attainments through ONDC. It is projected that the time-to-market and time-to-scale shall be considerably compacted.

Large-sized online shopping companies have complained against ONDC as they have invested funds in R&D and technology. Through their lucrative discounts and marketing of online sellers, Amazon and Flipkart have invested heavily to capture 80% of the total Indian eCommerce marketplace.

Even leading players such as Reliance and Tata have introduced retail platforms and online shopping applications with discounts and offers.

Still, the Indian government is expecting the contribution of all categories of business competitors in ONDC initiatives. Even conventional retailers and merchants will likely accept digital transformations and do not like to be locked out. With around 800 million smartphone user base, India’s appeal to worldwide retailers is even not dismissed.

Who are Significant Stakeholders to the ONDC?

Twenty government and private Indian organizations have invested in this initiative. Public and private sector banks, like Kotak Mahindra, SBI, Axis Bank, HDFC, and Punjab National Bank, have contributed stakes in ONDC.

Around eighty companies are working hard to blend marketplace players with the ONDC platform. These companies develop software and applications for online buyers, sellers, logistics, and payment gateways. Meanwhile, leading start-ups like eKart Logistics, hyperlocal delivery company Dunzo, and PhonePe, are in the progression of blending with ONDC.

Paytm eCommerce Private Limited will be pivoting to ONDC as its prime emphasis. Due to this announcement, its investors, China-based Alibaba and Ant Group, will exit over this modification in the company’s business path.

So, as of May 2022, five online seller platforms, one digital buyer platform, and one logistics partner are integral to the ONDC pilot project.

Critical Benefits of ONDC for Buyers

• Extensive range of selections amongst the dealers to get the perfect deal
• An outstanding medium to assist the digitization of businesses
• The fundamental platform to purchase any product

Critical Benefits of ONDC for Sellers

• Getting acquainted with a broad consumer base
• Having enhanced discoverability of the products and pricing
• Lower investments and minimal expenses for executing business online

How Can IndiaNIC Assist You?

Once you have comprehended to initiate your digital journey, the foremost thing you will require is an eCommerce portal. With the assistance of ONDC, you are going to display your products to a broader audience. So, your eCommerce portal must improve the online shopping experience of the user base.

We at IndiaNIC offer you the backing of proficient developers that will assist you in building your eCommerce portal. The portal will be designed and developed according to your desired requirements to ensure the best experience for you and your consumers.

Key Takeaways

ONDC is a new eCommerce platform and network launched by the Indian government. The platform’s prime focus is to eradicate the supremacy of big-sized eCommerce players and offer equal opportunities for growth to all categories of online sellers and dealers.

Following a network-centric tactic, ONDC will link the sellers, buyers, and delivery partners from diverse sources and thus will upsurge the choices to choose from for everyone.

FAQs on the ONDC Platform

What is ONDC in India?

The Indian government has introduced an Open Network for Digital Commerce (ONDC) platform as a potential substitute for leading global giants Amazon and Flipkart in its swiftly growing eCommerce marketplace.

What is the primary intention of project ONDC?

The platform intends to build new business opportunities, reduce online monopolies and back SMEs by providing them with a digital platform for growth.

How ONDC will work in a real-time scenario?

ONDC is not platform-driven, and it aims to tie consumer demands with the nearest accessible source of product supply. End-customers can thus discover sellers, products, or services through any eCommerce application or website, providing freedom of product selection and pricing.

How ONDC will influence retailers?

As ONDC will not be working with a platform-steered business model, the Indian government anticipates it will democratize the nation’s digital marketplace. It will cater to all categories of sellers and buyers, regardless of their size, so that even small-sized retailers and Kirana stores get an equal business opportunity.

Who is developing the ONDC project?

Nandan Nilekani, the co-founder of Infosys, is leading the Open Network for Digital Commerce (ONDC) project, which aims at generating a level playing field for small-sized business players.