BackIs ONDC the future for Indian E-commerce Sellers?
With its aim to establish an open and transparent digital network for e-commerce transactions, ONDC brings a wealth of advantages to the table, reshaping the entire digital commerce ecosystem
PremiumIn the ever-expanding digital landscape, where the rules of business are constantly evolving and consumer expectations are reaching new heights, ONDC, the government-backed initiative, has emerged as a true game-changer.
The Open Network for Digital Commerce (ONDC) is restructuring the way businesses operate and transforming the dynamics of consumer interactions.
With its aim to establish an open and transparent digital network for e-commerce transactions, ONDC brings a wealth of advantages to the table, reshaping the entire digital commerce ecosystem.
What are the objectives of ONDC?
The four core objectives of ONDC are:
a. Democratization and decentralization: ONDC aims to level the playing field, giving small and medium enterprises (SMEs) and local businesses an equal shot at success. No longer will they be overshadowed by industry giants, but instead, they'll have a platform to showcase their products and services to a wider audience.
b. Inclusivity and access: It recognizes the importance of giving every seller, regardless of their scale or resources, the opportunity to participate in the digital commerce boom.
c. Increased choices and independence: ONDC empowers consumers to make decisions that align with their preferences and needs. With a multitude of sellers from various platforms accessible through ONDC, consumers can explore a wide range of options and find the best fit for them.
d. Goods and services are more affordable: This means that consumers can enjoy competitive pricing, as well as potential cost savings due to reduced overhead costs associated with traditional e-commerce platforms.
How does ONDC work?
It's not like any normal online shopping platform.
ONDC has the same idea as UPI. To get access to a network of sellers offering their goods and services, you have to download the ONDC app. This app is convenient and hassle-free.
Acting as a gateway, ONDC connects buyers and sellers from various platforms.
It consists of a seller app, a buyer app, and a gateway that brings them together seamlessly.
Through its seller and buyer applications, ONDC acts as a gateway that connects buyers and sellers across different platforms, breaking down barriers and promoting inclusivity.
Arishekar N, Sr. Director of Marketing & Growth at SellerApp, a data analytics company helping e-commerce sellers said that he firmly believes that technology-driven innovations, such as analytics-powered customer engagement and digital ads, are leading to faster growth of the e-commerce industry in India.
At SellerApp, they have established their prowess in the e-commerce industry, successfully onboarding over 1,100 sellers into ONDC, including renowned CPG brands like Red Bull, Patanjali, True Elements, and 24 Mantra Organic.
“Similar to UPI's remarkable trajectory, the adoption of ONDC among sellers and buyers will undoubtedly grow in the near future. It doesn't just benefit a handful of sellers, but it holds the potential to the whole nation," said Arishekar N.
Here are a few ONDC Seller Apps like SellerApp GO FRUGAL, Growth Falcon, and eSamudaay that are helping sellers onboard into the ONDC.
What are the main benefits of the ONDC network?
With the potential to transform the e-commerce landscape in India, the advantages of ONDC are far-reaching. These benefits include enhanced transparency, expanded customer choices, acting as a catalyst for innovation, cost efficiency, consumer protection, and providing a neutral and regulated platform.
Enhanced transparency is a fundamental aspect of ONDC, fostering trust and accountability by making government data more accessible. This increased access empowers individuals to make well-informed decisions and hold entities responsible for their actions.
ONDC's focus on expanding customer choice breaks down barriers to entry, encouraging the participation of more SMEs. This diversifies the market, providing consumers with a wider range of options and fostering a more competitive marketplace.
By granting entrepreneurs access to valuable government data, ONDC catalyzes innovation, enabling the development of innovative products and services that benefit society as a whole. Leveraging this data, entrepreneurs can identify emerging trends and tailor their offerings to meet evolving consumer needs.
ONDC streamlines processes, eliminating duplication of effort and resulting in significant cost savings for businesses and end customers. Businesses utilizing ONDC for food delivery, for instance, benefit from substantially lower platform fees compared to market leaders.
Consumer protection is a key focus of ONDC. By introducing healthy competition and breaking the hegemony of dominant players, ONDC promotes fairer practices, improved services, and better protection of consumer rights.
Moreover, ONDC operates as a neutral and regulated platform, independent of any specific entity, to ensure fairness, transparency, and equal opportunities for all participants. This approach fosters collaboration, prevents favoritism, and promotes a healthy and regulated digital commerce environment.
Milestones achieved by ONDC so far
Since its inception, ONDC has achieved significant milestones. With over 26,000 collaborating merchants offering a diverse range of more than 27 lakh products, ONDC has experienced exponential growth, with over 600 transactions per day.
The thriving network of over 40,000 sellers and participation from more than 45 participants across 236 cities showcases ONDC's extensive reach and inclusivity. The platform drives success from its ability to foster collaboration, attract established and emerging players, and offer a diverse array of products and services to consumers.
The ONDC network is driving a seismic shift in the e-commerce landscape in India, empowering SMBs and entrepreneurs. With its commitment to transparency, inclusivity, and fair practices, ONDC stimulates innovation, leading to the development of new products and services that benefit society and propelling the industry into the future.
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