Open Network For Digital Commerce (ONDC), The UPI For Ecommerce.

Open Network for Digital Commerce (ONDC) is a network based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order, delivery, hotel booking, and travel, among others, to be discovered, and engaged by any network-enabled application.?It’s been seen as a step in the direction of democratising the ecommerce space in India - mainly controlled by multinational ecommerce players Amazon and Flipkart.

Still, in its early stages, the project could be a booster shot for small online retailers and new entrants. Anil Agrawal, additional secretary in the Department for Promotion of Industry and Internal Trade, has earlier said that protocols under ONDC would standardise all operations like cataloging, inventory management, order management, and order fulfillment.

WHAT IS ONDC?

Often referred to as the UPI of ecommerce, ONDC is a freely accessible government-backed. The government aims to put in place a structure for sellers and logistics service providers to connect with buyers. One of its objectives is to create a level playing field for ecommerce giants and small traders and curb the dominance of large, foreign-owned ecommerce companies such as Amazon.

The government has set up a nine-member advisory council, including Nandan Nilekani from Infosys and National Health Authority CEO, R S Sharma, to ascertain steps required to design and accelerate adoption of ONDC.

Through this platform, consumers can potentially discover any seller, product, or service by using any ONDC-compatible application or platform, thus increasing freedom of choice for consumers.

This platform will boost India's SME and mid-market sector to tap into Indian digital growth. Currently, online retail accounts for about six percent of India’s overall retail market, but traditional retailers and merchants are aware of how rapidly this could change and do not wish to be locked out or priced out. With over 900 million active mobile phone users ONDC will be a game-changing step in the history of ecommerce.

Eunimart welcomes ONDC, powering global commerce by helping SMEs, and mid-market to go global with warehousing solutions, catalog agnostic, and belief in the power of omnichannel. ONDC is the right move and Eunimart is all in to support you with your business.

Who are key stakeholders to the ONDC?

Twenty government and private organizations have confirmed investments worth INR 2.55 billion (US$33.34 million).

Several public and private sector banks, such as HDFC, Kotak Mahindra, Axis Bank, State Bank of India (SBI), and Punjab National Bank (PNB), have picked up stakes in ONDC. Axis Bank, HDFC, SBI, and Kotak Mahindra has acquired a share of 7.84 percent each, by individually investing INR 100 million (US$1.3 million) to purchase 10,00,000 equity shares of the face value of INR 100 each. Earlier in November 2021, PNB had announced its plans to buy a 9.5 percent share in ONDC.

Around 80 firms are working to integrate market players with the ONDC platform. These firms are making enterprise software and apps for sellers, buyers, logistics platforms, and payment gateways, as reported in The Economic Times.

Ref :- ETTIMES, The Economic Times, The Indian Briefing.