Open Network for Digital Commerce (ONDC) 

ONDC is a digital platform, founded in April 2022, that aims to make online commerce more efficient and accessible. “By providing a standard technology infrastructure for various stakeholders, such as merchants, payment providers, and logistics companies”. It is an initiative by the Government of India to create a shared digital infrastructure for the e-commerce industry in the country.  

Initiative 

ONDC is a private non-profit company established by the Department for Promotion of Industry and Internal Trade of the Government of India to develop open networks for e-commerce. 

• The government of India is seeing it as an alternative to dominant global giants Amazon, Flipkart, and Walmart in the growing e-commerce market. 
• GOI’s most ambitious project after UPI. It can be understood as the UPI for e-commerce. 

AIMS

• The government of India is seeing it as an alternative to dominant global giants Amazon, Flipkart, and Walmart in the growing e-commerce market. 

• ONDC aims to become a megastore for all your shopping needs from technology to food.  

• It is going to connect Buyers coming on their platform with any seller who is registered with their platform. 

• It aims to provide the best deals and prices in favour of consumers. 

• Most importantly it is going to democratize the entire digital commerce space. It is trying to break the monopoly of giant e-commerce spaces. 

Scope for Small Retailers 

In India, the majority of e-commerce is dominated by Amazon and Flipkart. But with the coming ONDC, it is going to create opportunities for small retailers and vendors. Its main focus is to unbundle the e-commerce resources. 

ONDC vs Food Delivery Platforms 

The food delivery platforms like Swiggy and Zomato ask for their commission fees which are necessary to cover the costs of running their services.  

There have been several cases where restaurant owners have filed complaints against food delivery platforms such as Swiggy and Zomato. These disputes often arise “due to disagreements over the commission fees these platforms charge, ranging up to 30% of the order value.” 

ONDC can address the challenges faced by restaurant owners in their dealings with food delivery platforms like Zomato and Swiggy. 

Conclusion

ONDC is going to revolutionize the e-commerce sector by democratising it. Also by favoring small retailers, and in turn, benefit consumers.

ONDC is currently accessible through different apps such as Paytm, Meesho, Magicpin, Mystore, etc.