How ONDC can be a gamechanger for India’s e-commerce landscape

The government of India, in April this year, launched its Open Network for Digital Commerce (ONDC) as an alternative to the e-commerce landscape. While the big giants like Amazon, Flipkart, and Reliance Retail are already planning to join this e-commerce network, a recent report claims that this pilot program is already on its path to include kiranas and businesses in 5 cities, including Bengaluru, and aims to reach around 100 cities by the end of August.

What is Open Network for Digital Commerce (ONDC)?

ONDC is a non-profit company whose network will enable the display of products and services from all participating e-commerce platforms in search results across all apps on the network. For example, if both Amazon and Walmart's Flipkart integrate their platforms with ONDC, a user searching for a Bluetooth speaker on Flipkart would also see results from Amazon on the Flipkart app.

What experts say on ONDC, the open network billed to be the UPI of e-commerce

Lokendra Ranawat, CEO, WoodenStreet, in an interview, said that “ ONDC will genuinely help MSMEs build solid neck-to-neck ground with prominent vendors in the market. Many Indians would stop shopping outside if their next-door shop was available online. People who prefer shopping online in this decade explored the convenience of online shopping before finding a good shop next door."

“It might sound sad to many, but there are abundant luxury points to enjoy. This initiative would make a difference and curb digital monopolies,” added Ranawat.

Raghunandan Saraf. Founder & CEO, Saraf Furniture

The government has initiated the Open Network for Digital Commerce (ONDC) as an alternative to platform aggregators including Amazon and Flipkart, which have thus far dominated India's e-commerce terrain. Once implemented and enforced, all e-commerce companies in India will have to continue operating using the same procedures, providing a boost to smaller online sellers as well as newcomers by introducing discoverability, connectivity, and consistency. It will empower suppliers and consumers by breaking the dominant position of large platforms in order to drive innovation and transform businesses in industries such as retail, food, and mobility.

Ridhima Kansal, Director, Rosemoore

Just like UPI revolutionized mobile payments in India, ONDC can be a game changer in India’s USD ~ 40 billion digital retail industry. It can digitize the entire value chain and usher e-commerce into a new era of increased inclusiveness & democratization. It can also transform food delivery, ticket booking, transport services, and other complementary services.

Companies registered for ONDC

More than 20 companies have already started registering for ONDC, which includes most of the large banks in India. Other start-ups such as Dunzo, Flipkart, etc. have also registered.