What is ONDC?

Open Network for Digital Commerce or ONDC is India’s alternative to the global giants like Walmart and Amazon. It is a government, non-profit initiative that will promote the use of open networks for e-commerce activities. Technically, it is a protocol that will need to be adopted by technology companies that support MSMEs.

It will curb digital monopolies and standardize the onboarding of retailers on digital e-commerce platforms.

Features of ONDC

- Non-exclusive, non-rivalrous public infrastructure

- Open network

- Voluntary and flexible adoption

- Equal access

What does ONDC Want to Achieve?

Just like UPI changed payment in India, ONDC will transform the e-commerce experience for sellers and consumers.

- ‘Democratize’ digital commerce and move it away from platform-centric models like Walmart, Flipkart, and Amazon.

- Ending monopolies of Amazons and Flipkarts of the e-commerce industry.

- Inclusivity and access for SMEs and MSMEs.

- Empower consumers with more choices.

- Enable more sellers to be on digital platforms.

- Transactions will go through an open network.

- Breakaway from the existing silos by empowering merchants and consumers.

How Will ONDC Help Sellers?

As it is a work in progress, the details are unclear.

- Standardize operations for sellers, including cataloging, inventory, order management, and order fulfillment.

- No platform-centric operations or requirements.

- Increased visibility over the open network.

- Easy adoption for sellers who don’t have a digital presence at present.

- Promote local suppliers and increase their efficiency in logistics and supply chain.

- Reduction in customer acquisition cost.

- A decreased monopoly of large sellers.

- Seamless integration across the supply chain.

- Level the playing field in digital e-commerce.

How Will It Roll Out?

- Setting up a private sector-led non-profit unit to fast-track the ONDC roll-out.

- A startup mindset will drive change with its futuristic vision, the ease with cutting-edge technology, ‘missionary outlook,’ and a deep understanding of commerce.

What are the benefits of ONDC for consumers?

- Access to more sellers and therefore more choices

- Better service and faster deliveries with access to local retailers

- Better customer experience

People Behind ONDC

- S. Sharma, chief executive of the National Health Authority

- Nandan M. Nilekani, non-executive chairman of Infosys

- Adil Zainulbhai, Chairman, Quality Council of India

- Anjali Bansal, founder and chairperson, Avaana Capital

- Arvind Gupta, co-founder & head of Digital India Foundation

- Dilip Asbe, MD and CEO of NCPI

- Suresh Sethi, MD & CEO of NSDL

- Kumar Rajagopalan, chief executive of the RAI

- Praveen Khandelwal, Secretary-General of CAIT

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Reference:

1. https://www.ondc.org/index.html
2. https://twitter.com/ONDC_Official?s=09
3. https://www.facebook.com/ONDC-Ltd-103148322189702/
4. https://www.livemint.com/industry/retail/how-ondc-seeks-to-democratize-digitalcommerce-11635357057863.html
5. https://www.youtube.com/watch?v=cziZ_Hmv_IQ
6. https://www.youtube.com/watch?v=sBBMRBVvVis