Understand ONDC in detail

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ONDC is a digital commerce or ecommerce platform started by the Government of India to have a level playing field for all the stakeholders in the digital commerce ecommerce ecosystem. 

What ONDC is

1. Platform Independent: Whether you use a small app or a large e-commerce site, if it’s connected to ONDC, you can buy or sell on it.
2. Technology Driven: It’s  a technology platform, to which any key stakeholder needs to get connected to be a part of it, like a retailer wanting to sell products on ONDC,  retailers should get connected using the API provided by  ONDC, they can do it by themselves or use a seller network partner.
3. Supportive of Competition: Being open to all encourages fair competition among businesses of all sizes.

What ONDC isn’t

1. An E-commerce Platform Itself: ONDC is not an online store or marketplace. Instead, it’s the infrastructure that connects different e-commerce services.
2. Limited to Specific Vendors: It doesn’t favor any specific sellers or platforms. Anyone can join the network.
3. Restricted to Large Businesses: In the current model, a big player like Amazon, Flipkart, and Messho control retail e-commerce; Ola/Uber controls travel services, and Food delivery is controlled by Zomato/Swiggy; likewise, all the segments are controlled by a few players. ONDC is not restricted to any players and is open to everyone

Benefits of ONDC

• Consumer Choice: Shoppers or buyers can access a wider range of products from various sellers on a single interface.
• Lower Costs: It can reduce costs for sellers by minimizing the need to develop individual platforms, thus reducing the commission and cost. 
• Innovation and Efficiency: Encourages innovation by making it easier for startups and tech companies to offer new solutions within the e-commerce space.

ONDC: Transforming Digital Commerce in India

ONDC, or the Open Network for Digital Commerce, is an initiative started  by the Government of India with the aim of democratizing digital commerce by giving equal opportunities to all the players and providing the best  online shopping experience to the end user. It seeks to make digital commerce more equitable, user-friendly, and innovative.

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Timeline of ONE's Development

• July 5, 2021: July 5, 2021: The Department for Promotion of Industry and Internal Trade (DPIIT) formed a 9-member Advisory Council to guide ONDC. The Quality Council of India (QCI) was given the role of supporting the project using open-source methods. The project started with an initial fund of ₹10 crore.
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• November 2021 - March 2022: Investment from both the public and private sectors helped establish the base for ONDC, officially kicking off its journey.
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• March 23, 2022: The Ministry of Electronics and Information Technology (MeitY) through its Common Service Centres (CSC) pledged to support ONE's outreach in rural areas, planning to set up 3 Lakh Grameen e-Stores to aid e-commerce and logistics.
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• July 2022: Over 20 diverse organizations committed a total of ₹255 crore ($32 million) to ONDC, broadening its resource base.
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• August 9, 2022: A MoU was signed with the Small Industries Development Bank of India (SIDBI) to engage small industries in the digital commerce network.
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• September 8, 2022: ONDC continued to form partnerships and seek new growth opportunities.

Key Milestones in ONE's Pilot Phases and Expansion

• April 29, 2022: The pilot phase kicked off in 5 cities; the 1st transaction on ONDC took place through the Paytm app from Woolly Farms in Bengaluru.
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• May 5, 2022: Collaboration with Petpooja and GrowthFalcons helped onboard various food and beverage brands, culminating in a successful multi-party transaction involving LoadShare.
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• August 2022: Operationally tested, it set the stage for expansion to 100 cities by the end of the year, following an initial rollout in pilot cities.

Government Initiatives and Strategic Plans

• The Uttar Pradesh government promoted the One District One Product (ODOP) scheme via ONDC.
• Integration with various government ministries and departments was planned to enhance digital commerce through ONDC.
• DPIIT focused on addressing delivery and service issues reported through the National Consumer Helpline.
• The Startup India Seed Fund Scheme (SISFS) supported the development of ONDC applications in local languages to improve accessibility.
• A competitive referral commission of 3% was set, much lower than the typical 30% charged by major platforms.
• As of August 2022, plans were in place to expand the pilot to 51 cities, with Bengaluru poised to offer full user access from September.

Objectives of ONDC

• Promoting Competition: Breaking the monopoly of large digital platforms to widen consumer options.
• Empowering Democracy and Decentralization: Distributing power more evenly across the digital space.
• Digital Transformation: Help businesses to digitize the commerce 
• Streamlining Operations: Simplifying current ecommerce process by removing the redundancies and simplifying the processes.
• Ensuring Fairness and Access: Giving small businesses and local stores a fair chance to succeed online.
• Improving Delivery: Making deliveries faster and more efficient.
• User Empowerment: Giving consumers more options and control.
• Privacy Protection: Keeping user data safe and private.
• Reducing Costs: Cutting business costs, which could mean lower prices for customers.
• Learning from UPI: Using insights from UPI to make improvements.

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Whether you want to order food, purchase groceries, buy a ticket or some educational resources, ONDC lets you explore options and discover the best offers, enhancing both convenience and efficiency in online shopping.

Features of the Open Network for Digital Commerce (ONDC):

• Hyper-Local Search Engine: ONDC offers a hyper-local search engine that prioritizes GPS data, allowing buyers to freely choose sellers and logistics partners to complete their transactions.
• Increased Choice and Competition: It brings together all the sellers in one interface, and with this, ONDC provides fair competition and better prices.
• Lower Prices: Typically, ONDC can offer lower prices compared to other platforms, with zero commission or minimal commission
• Discounts and Promotions: Users can find various discounts and promotions on ONDC, especially through platforms like Paytm, which can include price reductions, free delivery, or seasonal offers, providing additional savings.
• Support for Small Businesses: ONDC is instrumental in helping small businesses and local vendors expand their reach beyond local boundaries, offering unique products and services that may not be available on larger e-commerce sites.
• Government-Backed Initiative: It is Supported by the Department of the Government of India, enhancing its credibility and trustworthiness.
• Customer Support: ONDC provides in-app customer support to assist with order tracking, payment issues, or other inquiries.

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Difference Between ONDC and the current Independent platform

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