Finance

Published: May 9, 2023
Updated: May 9, 2023

ONDC: Revolutionizing E-Commerce in India and Empowering Small Retailers

The Open Network for Digital Commerce (ONDC) is a groundbreaking e-commerce protocol launched by the Department of Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce in India in April 2020. The primary goal of ONDC is to democratize e- commerce and empower small retailers and businesses to sell their products or services directly to customers, without the need for a third-party application.

How ONDC Works?

ONDC works on an open-sourced methodology and enables buyers and sellers to interact with each other directly, making it a game-changer in the Indian e-commerce market. Through ONDC, sellers can become visible to customers across the country, who are using any of the partner applications such as Paytm, Mystore, Craftsvilla, Spice Money, Meesho, Magicpin, and Pincode.

Benefits for Customers

ONDC offers numerous benefits to customers. Buyers can explore and purchase a wide range of products from various brands and local businesses, including food and beverage, beauty and personal care, home and decor, electronics, and fashion. Customers can search for the desired product through their preferred buyer application and place an order, without the need for a middleman.

Moreover, ONDC also displays the nearby local stores and retailers based on the customer's location, making it easier for customers to purchase products from their preferred local businesses.

Benefits for Sellers

ONDC offers immense benefits to small retailers and businesses. The network allows them to compete with e-commerce giants such as Amazon and Flipkart by making them discoverable online to customers and increasing their reach. Sellers can use any ONDC- compatible application to do business and don't need to be governed by the specific policies of an e-commerce platform.

Significance of ONDC

According to Commerce and Industry Minister Piyush Goyal, ONDC will help small retailers survive the onslaught of large tech-based e-commerce companies. ONDC aims to democratize e-commerce and make it more inclusive and accessible for customers to shop for anything from their preferred local business or any other retailer. The network also standardizes operations such as order management, cataloging, order fulfillment, and inventory management.

ONDC is a game-changer in the Indian e-commerce market, empowering small retailers and businesses to compete with larger e-commerce giants. It aims to make e-commerce more accessible and inclusive for customers, enabling them to purchase products from their preferred local businesses directly. ONDC's innovative approach to e-commerce will likely play a significant role in the growth of the Indian e-commerce industry.