Explained | How ONDC will change the e-commerce game
Pitched as the UPI of e-commerce, Open Network for Digital Commerce is a freely accessible government-backed platform that aims to democratise e-commerce by moving it from a platform-centric model to an open network
Open Network for Digital Commerce (ONDC) is being seen as a step in the direction of democratising the e-commerce space in India, mainly controlled by multinational players Amazon and Flipkart. A look at what it is and how it will work (Image: News18 Creative)
Often referred to as the UPI of e-commerce, ONDC is a freely accessible government-backed platform that aims to democratise e-commerce by moving it from a platform-centric model to an open network for buying and selling goods and services. (Image: News18 Creative)
Flipkart and Amazon are the major e-commerce players in India. (Image: News18 Creative)
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Buyers and sellers have to be on the same app for a transaction which happens through the same platform. (Image: News18 Creative)
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Unlike the platform-based model, the ONDC will not be owned or controlled by a single entity or platform. (Image: News18 Creative)
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Businesses and consumers will be able to carry out transactions over ONDC using any compatible application of their choice. (Image: News18 Creative)
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On the platform, eSamudaay, ERP player Gofrugal, digital business platform for enterprise business Digiit, and digital marketing outfit Growth Falcon, are involved on the sellers’ side of interface. (Image: News18 Creative)
Here’s how it will benefit sellers and buyers. (Image: News18 Creative)
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According to an October 2020 CB Insights report, almost 90 percent of India’s commerce is still done informally via brick-and-mortar channels. (Image: News18 Creative)
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ONDC is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry. (Image: News18 Creative)
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According to the government’s official statement, ONDC shall take all measures to ensure confidentiality and privacy of data in the network. (Image: News18 Creative)
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On April 29, 2022, the government launched the pilot phase of the project in five cities: Delhi-NCR, Bengaluru, Bhopal, Shillong and Coimbatore. (Image: News18 Creative)
