One of the latest and best innovations in the e-commerce industry is ONDC (Open Network For Digital Commerce). But what is ONDC?
Online shopping has become a part of our daily lives. But have you ever stopped to consider what sets the big online retailers apart from the smaller, independent ones? As the online retail market continues to grow, it is becoming more and more important for businesses to find ways to stand out from their competition. One of the latest innovations in this space is ONDC – an e-commerce platform that offers features and capabilities that are not available on Amazon. In this article, we will explore what is ONDC, how it differs from Amazon, and the potential benefits it could offer your business.
What is ONDC?
The Open Network for Digital Commerce (ONDC) is a network based on open protocols that makes local commerce discoverable on any network across segments such as mobility, grocery, meal ordering and delivery, hotel booking and travel. Increase. Used – Activated applications.
A non-profit organisation called ONDC’s network will make it possible for all participating e-commerce platforms to have their goods and services displayed in search results for all of the network’s apps.
The platform promises to open up new opportunities, break up digital monopolies, and let micro, small, and medium-sized businesses and independent merchants join online marketplaces. It is a project of the Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade (DPIIT).
This network doesn’t require buyers and sellers to use the same platform to conduct a transaction because it employs open specifications and protocols and isn’t bound to any platform. Regardless of the applications they use, buyers and sellers can transact as long as the platforms are linked to an open network.
With plans to add 150 stores in the pilot phase, the Department for Promotion of Industry and Internal Trade (DPIIT) initiated a test run of ONDC in five cities in April this year: Delhi-NCR, Bengaluru, Coimbatore, Bhopal, and Shillong.
For example, if Amazon and Flipkart integrate their platforms with ONDC, a user searching for a Laptop on Amazon would also see results from Flipkart on the Amazon app.
How ONDC Works?
Small retailers can be found more easily thanks to the network. Consumers can find a retailer’s offerings on e-commerce platforms that adhere to the ONDC’s open protocol once they have listed their goods or services there. When looking for a product, a customer can view the seller’s location and choose to purchase from a local store that can deliver more quickly than an online retailer. This might encourage hyperlocal consumer-to-seller delivery of items like food.
An organisation that wants to participate must take on one or more of the following roles in addition to those of buyers and sellers:
Link the network and the buyer :
Creating websites or applications that customers can visit to explore and search for products that are for sale on the ONDC network will help connect buyers to the network. Only Paytm offers a buyer-side interface as of right now.
linking buyers and merchants on the network:
Creating software that will provide vendors access to the ONDC network, allowing them to list their goods for sale and take payments. These facilitators are also responsible for telling merchants about ONDC.
Gateway:
Applications that, in accordance with search parameters, will broadcast the search request received from buyer-side apps to seller-side apps listed on the ONDC registry.
technological solutions:
Supplying additional technical software for the other three positions.
Features Of ONDC
By converting digital or electronic commerce from a platform-centric model to an open network, ONDC, a UPI of e-commerce, aims to democratize the industry. Merchants will be able to save their data through ONDC in order to reach customers and establish credit histories.
The planned government-backed platform intends to level the playing field for online retail giants like Amazon and Flipkart as well as offline merchants who have been complaining about the unfair business practices of these e-trailers. The platform will also be in conformity with the upcoming Personal Data Protection Bill as well as the Information Technology Act of 2000.
The ONDC system will make it possible for buyers and sellers to trade over an open network independent of the platform or application they use. By dissolving silos and creating a single network to spur innovation and scale, it will also enable businesses across all industries, from retail to food to mobility.
The new framework seeks to support open networks created using open standards and open network protocols that are independent of any particular platform.
It is anticipated to digitalize the entire value chain, standardize operations, encourage supplier inclusion, increase logistics efficiency, and improve value for customers.
The government’s official statement is that ONDC must take all necessary steps to protect the privacy and confidentiality of data in the network. Participants are not required by ONDC to share any transaction-level data with ONDC. Will collaborate with its users to publish anonymous aggregate metrics on network performance while maintaining privacy and confidentiality.
Currently, ONDC is in the pilot stage. To design and hasten the adoption of ONDC, the government has established a nine-member advisory board, which includes Nandan Nilekani from Infosys and R S Sharma, CEO of the National Health Authority.
What Objectives Does The ONDC Have?
The world of digital payments has been upended by the Unified Payment Interface (UPI). For e-commerce, ONDC aspires to a similar outcome. With an open network instead of platform-centric models like those used by Amazon and Flipkart, it seeks to “democratise” digital commerce. More retailers may be able to be found online thanks to ONDC. An open network will be used to carry out the transactions. According to insiders, the system may empower businesses and customers by shattering the current silos. In the end, it will affect every industry, from food and retail to transportation.
How Does ONDC Helps Your Business Grow?
- Availability of choice.
- Expanded access to demand.
- Lower order acquisition cost.
- Fair broadcasting of search requests.
What ONDC Is And What ONDC Is Not?
Existing Plateform Centric Model
Here, in order to conduct business, buyers and sellers must utilise the same platform or application.
ONDC’s Network-Centric Model
Through a shared network, buyers will have access to all services currently offered by diverse merchants on multiple platforms.
Benefits Of ONDC
- For sellers
Access to more buyers.
Better discoverability of the product.
Autonomy on terms because of multiple choices for being digitally visible.
Lower cost of doing business.
More options for value chain services like logistics and fulfilment.
- For Buyers
Access to more sellers.
More product choice.
Access to hyper-local retailers, better services and quicker deliveries.
Better customer experience.
- For tech platforms
Reduced time to market and time to scale.
New opportunities for startups to drive innovation in various parts of the network.
Focus on niche aspects leaving other partners to focus on different aspects.
