ONDC empowers direct interaction between buyers and sellers, eliminating the need for third-party applications.
The Indian government has launched the Open Network for Digital Commerce (ONDC) to create a level playing field in the e-commerce sector and enable small retailers and stores to sell their products or services directly to customers through a dedicated platform.
The Ministry of Commerce’s Department of Promotion of Industry and Internal Trade (DPIIT) has introduced the Open Network for Digital Commerce (ONDC) protocol. This innovative network allows buyers and sellers to interact without the intervention of a third-party application. Through ONDC, sellers can gain visibility to customers across the country who are using partner applications.
ONDC offers a diverse range of products from various brands and local businesses, allowing buyers to explore and purchase items across multiple categories. These include food and beverage, beauty and personal care, home and decor, electronics, and fashion, among others.
Customers can access ONDC and shop through various buyer applications such as Paytm, Mystore, Craftsvilla, Spice Money, Meesho, Magicpin, and Pincode.
To shop with ONDC, buyers simply need to open their preferred buyer application and search for the desired product. The application will also display local stores and retailers based on the customer’s location. Once the store is selected, buyers can explore pricing options and place their orders.
ONDC provides an opportunity for sellers and local businesses to compete with e-commerce giants like Flipkart and Amazon. The network expands their reach to customers by making them discoverable online. With ONDC, buyers and sellers can carry out transactions without being on the same application. Additionally, sellers are not bound by the specific policies of an e-commerce platform and can conduct business using any ONDC-compatible application.
According to Commerce and Industry Minister Piyush Goyal, ONDC will “help our small retail survive the onslaught of large tech-based e-commerce companies”. The minister said ONDC will democratize the benefits of e-commerce the way UPI helped democratize payment systems.
The purpose of ONDC is to create a more inclusive and accessible e-commerce space for customers. They can now shop for anything from their preferred local business or any other retailer. The network also aims to standardize operations such as order management, cataloging, order fulfillment, and inventory management.
