ONDC stands for Open Network for Digital Commerce which is a non-profit making organisation which is the initiative of the Ministry of Commerce and Industry.
ONDC will function on the basis of an open network where it will not be a single platform similar to Amazon or Flipkart but rather in the form of a single gateway where buyers and sellers across different platforms will be able to connect.
ONDC is an open-sourced network that facilitates local commerce across different aspects like mobility, grocery, food order and delivery, hotel booking and travel.
Big marketplaces like Amazon, Flipkart, BigBasket, Grofers and Zomato will have to get registered on the platform that DPIIT will create. This will provide consumers with multiple choices to pick any product or service from, through any compatible application or platform.
The most attractive feature about ONDC is that businesses and consumers will be able to carry out transactions over ONDC using any compatible application of their choice, both the buyer and seller need not be using the same platform to conduct a business transaction.
The need for a common platform was seen when the small-scale D2C businesses were majorly left out of the e-commerce space where as 80% of the retail space in the country is filled with small kirana stores and small shops that are not able to participate in the e-commerce boom on account of a lack of expertise, scale, or finances.
ONDC will create equalised conditions for big marketplaces and local kirana stores, which is the foundation of the Indian Retail system. The crux of this interface will be seen in the form of a ONDC buyer app and a ONDC seller-side app with a gateway between the two that will connect them.
The gateway will act as a common thread that will enable price discovery as well as matching the buyers and sellers on the basis of parameters like availability, accessibility, location, customer choices, etc.
It aims to provide a level playing field to all the participants in the e-commerce business.
This will give a huge boost to the country’s e-commerce sector and will help integrate consumers and suppliers across the country by creating an open network for them.
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