How ONDC Is Revolutionizing E- Commerce in India?
Ever shopped online and wished you had more options to choose from or lower prices? The e-commerce landscape in India is about to change in a big way. Imagine being able to search across multiple shopping apps and websites at once to find the best deals. That’s the vision of ONDC, an initiative by the Indian government to make e- commerce more open and accessible. ONDC aims to level the playing field so small businesses have a chance to compete with the big guys. As a shopper, this means you’ll have way more choice and better prices. The network is set to launch soon, so get ready to transform how you shop online. No more being limited to a single website or app – the whole of the internet will be your shopping mall.
What Is ONDC and How Does It Work?
Open Network for Digital Commerce or ONDC is an initiative by the Indian government to enable small retailers and merchants to benefit from e-commerce. Essentially, ONDC aims to democratize e-commerce by building an open e-commerce network.
What Exactly is ONDC?
ONDC is a network that will enable buyers and sellers to connect and transact regardless of what platforms they use. In other words, it will allow interaction between e-commerce platforms. For example, a buyer on Amazon should be able to purchase from a seller on Flipkart. ONDC will make e-commerce accessible to buyers and sellers across India, regardless of the size of their business or location.
How Does ONDC Work?
ONDC functions on open network protocols, meaning any e-commerce portal can join the network. Here’s how it works in simple steps:
- Sellers, buyers, logistics providers, and payment gateways plug into the ONDC network through open APIs. They are not limited to any single platform.
- Buyers have a wider range of products and lower prices to choose from as they can discover sellers across platforms. Sellers have access to more potential customers.
- Once a buyer places an order, ONDC routes it to the appropriate seller. ONDC also helps with logistics and payments through its network of partners.
- Sellers fulfill the orders, logistics providers handle delivery, and payments are processed, all facilitated through the ONDC network.
- ONDC earns a small transaction fee for enabling the e-commerce. Platforms and partners. also earn revenue for the value they add.
The Vision Behind ONDC – Increasing Market Access
The vision behind ONDC is to increase market access for buyers and sellers across India. As an open network, ONDC aims to enable interconnection between e-commerce platforms so you have more choices and the freedom to switch between platforms easily.Currently, e-commerce in India is dominated by a few large players. As a buyer, you’re locked into whatever platforms, products, and prices those companies provide. As a seller, you have limited reach and end up relying on those companies to access customers.
ONDC wants to change that by making e-commerce more open and connected. By facilitating interconnection between platforms, ONDC will give you as a buyer access to more sellers and products at competitive prices. No matter which platform you use, you’ll have a wider range of choices. As a seller, you’ll gain access to more potential customers across platforms. You won’t be dependent on any single platform to reach buyers.
Increased competition and choice
With ONDC, e-commerce platforms will have to compete to provide the best experience and value to you. They’ll work to attract both buyers and sellers, driving more competitive pricing, product diversity, and innovation. As a buyer, you gain more power to choose platforms and sellers that meet your needs. As a seller, you’ll have stronger leverage to negotiate with platforms and access a wider base of customers.
How Sellers, Buyers, and Apps Can Get Involved
So you want to get involved with ONDC but don’t know where to start? Whether you’re a seller, buyer or app developer, ONDC has opportunities for you to participate.
Sellers
If you’re an e-commerce seller, joining ONDC can help you reach more potential customers. To sign up, you’ll need to connect your inventory and fulfillment systems to an ONDC-compatible platform. These platforms, called network participants, handle all the technical aspects so you can focus on your business. Once connected, your products will be discoverable by buyers across all the apps in the ONDC network. More eyeballs on your goods means more chances for sales!
Buyers
For shoppers, ONDC opens up more choices and the convenience of a single checkout. You’ll be able to browse products from multiple sellers in the apps you already use. When you make a purchase, a single payment will complete the transaction across sellers. No more entering your information multiple times! Your personal data and order details are also kept private within the network, so you can shop with confidence.
App Developers
If you build e-commerce apps, integrating with ONDC lets you provide more value to your users. By tapping into the network, your app will automatically gain access to all the sellers and products connected to ONDC. You can then focus on creating the best experience for your customers. ONDC handles the connections between apps and sellers in the background using open-source standards.
Early Successes and Challenges for ONDC Adoption
ONDC aims to enable small retailers and reduce the dominance of large e-commerce platforms. By facilitating interconnection between platforms, ONDC can give consumers more choice and better deals while allowing small retailers to access more customers.
Increased Competition
ONDC levels the playing field for small retailers by giving them access to more potential buyers. No longer will they be dependent on large marketplaces to reach customers. By enabling interconnection between platforms, ONDC makes it easier for buyers to search for products across many retailers and compare prices. This increased competition will benefit consumers through lower prices and more choice.
Obstacles to Overcome
However, ONDC faces significant challenges to gain widespread adoption. Large e-commerce platforms currently dominate the market and have little incentive to join ONDC. They may see it as a threat to their business model and market power. Many small retailers also lack the technical capabilities to easily integrate with ONDC. They will need support to adopt new standards and interfaces.
Building Trust
For ONDC to succeed, it must build trust in its network. Buyers and sellers need assurance that payments, logistics, and customer service will be handled reliably. As more platforms and retailers join ONDC, it can demonstrate its ability to facilitate transactions at scale. But a poor initial experience could hamper future adoption. Regulation may also help establish trust in ONDC by holding platforms accountable for fair practices.
The Future of E-Commerce With ONDC
The future of e-commerce in India looks bright with ONDC. This open network for digital commerce aims to enable small sellers and businesses across the country to be part of the e- commerce revolution.
Greater Access for Sellers
ONDC will make it possible for small sellers and local stores to offer their goods and services to a wide customer base through multiple e-commerce platforms. They won’t be limited to just one major marketplace. This open architecture gives them more opportunities to reach new customers and increase sales.
More Choice for Buyers
As a shopper, you’ll have access to a wider range of products and stores to choose from. You won’t be limited to the inventory of just one or two big e-commerce companies. ONDC links together many e-commerce platforms, so you can search across them at once and find exactly what you need.
Lower Costs for All
ONDC aims to reduce the costs of doing business for both sellers and e-commerce companies. Sellers won’t have to pay high commissions and platform fees to be part of multiple marketplaces. E-commerce companies also save on customer acquisition costs since buyers have more reasons to use their platforms. These savings can then be passed onto shoppers through lower prices and better deals.
Interconnection and Innovation
With an open network, there is more opportunity for innovation. Payments, logistics, and other e-commerce technologies can be integrated in new ways to improve the overall shopping experience. New start ups also have a chance to build innovative services and applications on top of the ONDC platform. This boosts competition and benefits both sellers and buyers.
How to Register on ONDC
Although ONDC itself doesn’t handle seller registration directly, it offers a network of seller apps that simplify the process. These apps function like your online shopfronts within the ONDC marketplace. Here’s how to get started:
- Find Your Perfect Fit: Explore ONDC-compatible seller apps. Popular options like Mystore (groceries) or SellerApp (fashion) cater to specific product categories. Choose an app that aligns with your offerings.
- Register on Your Chosen App: Download and launch the app. Create an account and provide your business details, including your business name and GSTIN (Goods and Services Tax Identification Number).
- Showcase Your Products: Upload high-quality images of your products along with clear descriptions and competitive pricing. This entices potential buyers and showcases your offerings.
- Set Up Transactions: Choose your preferred payment methods to facilitate customer purchases. Additionally, configure your preferred shipping options to ensure smooth product delivery.
Once you complete these steps, your products become visible across various buyer apps integrated with the ONDC network. This expands your customer reach significantly compared to traditional e-commerce platforms. Remember, this is a growing network, so keep an eye out for new features and functionalities offered by your chosen seller app.
Which Companies Are Currently on ONDC
ONDC is a young and dynamic network, and the list of participating companies is constantly expanding. Here’s a snapshot of the current landscape:
Seller Apps: Several seller apps are already on board, catering to diverse product categories. Popular names include Mystore and Digiit (groceries), SellerApp and Snapdeal (fashion), and Bizom (home decor). This list is expected to grow significantly as more businesses embrace ONDC.
Logistics Providers & Payment Gateways:While the specific names of logistics providers and payment gateways are still evolving as ONDC scales up, expect a wide range of options to ensure seamless product delivery and secure payment processing for both buyers and sellers.
Key Point to Remember: Major e-commerce platforms like Amazon and Flipkart haven’t yet integrated with ONDC. However, with the potential benefits and the network’s rapid growth, their involvement might be on the horizon. Stay tuned for exciting updates!
Conclusion
So there you have it, how ONDC is revolutionizing e-commerce in India. This open network is poised to disrupt traditional online marketplaces by giving more power to buyers and sellers. No longer will you be limited to the inventory and algorithms of a single website. With ONDC, you’ll have options from various platforms at your fingertips. Sellers will have more opportunities to reach customers through multiple channels. Most importantly, ONDC aims to make e-commerce more inclusive and accessible regardless of location, language, or device. Though still in its infancy, ONDC shows a lot of promise to transform how India shops online. The future of e-commerce in India just got a whole lot more interesting.
Ready to unlock the power of ONDC for your business? Wishtree InfoSolutions can help you register on ONDC platforms and develop strategies to reach new customers. Contact us today and take your e-commerce journey to the next level!
