ONDC: India’s open e-commerce plan

ONDC Features & Protocols for Small Businesses in India
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The open network for digital commerce was launched on April 28 across five cities with the primary aim to democratize digital commerce in India. Once it is implemented, a user who is shopping on any app will be able to see the products from the catalogs of different sellers-e-commerce apps, small merchants, and listed local stores and will be able to choose who they want to purchase from. So, for example, if you are looking for a new pair of jeans and look for it on an e-commerce app registered with ONDC, it will show you the results from its catalog, its rivals, and the small neighborhood sellers. As a shopper, you will have the option to pick where you buy from. Their protocol will also help and bundle individual services-seller, payments, and logistics-it will allow customers to pick and choose.

Features of ONDC

The government has high expectations that the ONGC would be the eCommerce industry’s monopoly. The current e-commerce market is separated into “silos.” Platforms like Amazon and Flipkart have been accused of cheating their sellers fairly. The government believes that ONDC would connect the buyers and sellers across different platforms. Here are some of the features of ONDC – 

  • To put an end to the platform on a police
  • Decentralization and democratization are its two main essential aspects
  • The value chain will become digitized
  • Operational standardization
  • Inclusion for sellers, minimal and medium-sized businesses
  • Better and improved logistical efficiency
  • Consumers will have more options and control
  • Ensuring more privacy and data security
  • Lowering the operating costs

ONDC’s vision to make e-commerce more accessible to consumers

An open network for digital commerce is most likely to make e-commerce more inclusive and accessible for consumers. Consumers can discover any seller, product, or service by using a compatible application or a platform that uses ONDC. The minister of State for commerce and industry, Som Prakash, addressed the Lok Sabha that the platform will also help the consumers to match the demand with the nearest available supply. He further added that this platform would give consumers the freedom to choose the preferred local businesses, standardized operations, and drive efficiencies and logistics, enhancing customer value. Small businesses can use ONDC-compatible applications rather than being strong-armed by platform-specific policies. This will help them become more discoverable and conduct their business.

Utilization of open protocols

Open network for digital commerce will help democratize e-commerce in India so that small pop-up stores and retailers do not get diminished in the western world but get an equal opportunity to grow their business. ONDC will allow small retailers to survive in the larger e-commerce market because big e-commerce companies indulge in irregular practices and are under constant investigation. In late April, the government launched the pilot phase of the ONDC, a UPI-type protocol in five cities in India, including Delhi, Bhopal, Coimbatore, Shillong, and Bangalore. Starting with 150 sellers during the rollout, the ONDC aims to onboard about 30 million sellers across hundreds of cities in the next six months. 

Technology-based solutions for easy trade

ONDC can be a massive step for the e-commerce industry in India because it will allow businesses to compete with each other directly without the need for intermediaries. This can be a significant boon for small businesses in India as they can let go of traditional e-commerce platforms that mostly favor larger enterprises. It will provide technology-based solutions for easy trade, and some of its benefits are – 

  • The access to the growth of digital commerce through seller and buyer-side applications will provide new chances for start-ups to promote innovation in different portions of the network.
  • There will be a shorter time to market and time to scale that can be achieved
  • Concentrate on specialist features which will allow other partners to concentrate on other aspects

The revolution of e-commerce with ONDC in India

The ONDC wants to open up new opportunities and remove the digital monopoly to help small and medium businesses to gain access to online platforms. This can be a revolution in the e-commerce industry, especially in India. It will take on Amazon and Flipkart and make it more accessible for businesses to buy, sell and trade goods and services. Small and medium enterprises will also be able to skip the traditional e-commerce platforms that favor more prominent companies. This government bank platform will balance the field for e-commerce behemoths like Flipkart and Amazon, as well as small offline traders who are the backbone of the Indian retail industry. The business practices of more prominent companies like Amazon and Flipkart have always been subject to complaints from small business owners. If the government can succeed with its plan, millions of small businesses will be able to go online, hence the revolution.

ONDC aims to democratize the future of digital commerce in India

ONDC is aiming to democratize the future of eCommerce by making it more accessible for all sizes of businesses to buy, sell and free digital goods and services. 

Potential Benefits of ONDC for sellers

  • To be able to get your product in front of a large number of people
  • An online company that can be done with a small investment and a low-cost
  • Having improved cost and product discoverability
  • For delivery partners, there will be more and better possibilities

Potential benefits of ONDC for buyers

  • Various dealers are available so you can find the best deal for yourself
  • An excellent tool for company digitization
  • A consumer can purchase any product with the help of the central platform

ONDC and the curbing of digital monopolies

The e-commerce market in India will be a massive industry and is predicted to expand to a $200 billion business. But the government has to face various challenges and develop strategies to meet those. Small-medium players have a great future. More people will spend money on products that reflect culture and identity, resulting in more habits and lifestyle modifications. More consumption of these products cannot be avoided as the Indian economy develops. Hence the retail e-commerce industry will also increase as a result of this. This will come together to end digital monopolies in the e-commerce market. 

Frequently Asked Questions

1. What does ONDC do?

The Open Network for Digital Commerce (ONDC) is a collaboration between a number of small and large-scale e-commerce companies. Even though it is still in its early stages, it is being marketed as a way to undermine the dominance of huge e-commerce companies in India, such as Flipkart and Amazon.

2. What is ONDC?

The Open Network for Digital Commerce (ONDC) is a government program to create an open platform for all aspects of the electronic exchange of goods and services.

3. What is Digital Commerce?

The process of buying products online without the involvement of a human is known as digital commerce. The distinction is slight, but digital commerce would exist if eCommerce were entirely automated, from marketing and sales to product delivery. While complete automation may appear to be a long way off, some of the world’s top retail corporations are already using it.

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