 is an open-source network. It will help local commerce compete with the E-Commerce Giants.){kind=link}
ONDC (Open Network for Digital Commerce) is an open-source network. It will help local commerce compete with the E-Commerce Giants.
According to the 2021 report by Bain & Company, India has the third-largest online shopper base globally, with 140 million e-retail shoppers in 2020, only behind China and the US. In view of the huge opportunity, the Department for Promotion of Industry and Internal Trade (DPIIT) formed ONDC, an open protocol-based digital commerce platform. ONDC was incorporated as a Non-Profit Company, on December 31 last year.
In the month of July 2021, the government had appointed National Health Authority CEO Ram Sewak Sharma and Infosys non-executive chairman Nandan Nilekani as members of an advisory council for creating an Open Network for Digital Commerce (ONDC).
Govt Kicks Off Pilot Phase of ONDC In 5 Cities on 29th April 2022. ONDC went live in five cities – Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore. About 80 firms are currently working with the platform and are at different stages of integration. The platform plans to add 150 retailers in five cities during the pilot phase. In a tweet, Union Minister for Commerce and Industry Piyush Goyal said, “After UPI, another game-changing idea to democratise commerce – ONDC soft launch…to select consumers, sellers and logistics providers. Get ready for a world of choice, convenience, and transparency.”
ONDC the future of ECommerce in India? https://t.co/VAnub6fbrG
— Entrepreneurs Media (@emedialive247) May 2, 2022
ONDC – What is it?
ONDC aims at promoting open networks developed on open-sourced methodology, using open specifications and open network protocols independent of any specific platform. ONDC is expected to digitize the entire value chain, standardize operations, promote inclusion of suppliers, derive efficiencies in logistics, and enhance value for consumers.
ONDC will help local merchants across segments, such as mobility, grocery, food order & delivery, hotel booking & travel to reach and engage more people. “ONDC will empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, and food to mobility,” the ministry had said earlier.
It may be noted, that Open Network for Digital Commerce christened ONDC is a globally first-of-its-kind initiative that aims to democratise Digital Commerce, moving it from a platform-centric model to an open network. As UPI is to the digital payment domain, ONDC is to e-commerce in India. ONDC will enable, buyers and sellers, to be digitally visible and transact through an open network. no matter what platform/application they use. ONDC will empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, and food to mobility.
Speaking on the launch, Anil Agrawal, additional secretary in the Department For Promotion of Industry and Internal Trade (DPIIT), said, “With this pilot phase, we want to learn as to how this rolls out in the real-life environment where you actually make payments, do the deliveries, cancel orders and how refund works. Once these lessons are known, we would create a playbook, which will be a set of standards.”
Outlining ONDC’s future plans, Agrawal said, “Going forward the target of the ONDC is to onboard 3 Cr sellers and 1 Cr retail merchants online. In the next step, we want to go to 100 cities in six months. Agrawal also said that more local language support will be added to the app in the near future to expand the number of buyers and sellers.
"#ONDC will happen, and it will happen fast. It's going to be the next revolution and disruption in India."
— ONDC India (@ONDC_Official) January 15, 2022
Watch Shri Nandan Nilekani's @NandanNilekani Address at Startup India Innovation Week.@anilarch @AdilZainulbhai @KoshyTK#ONDCatInnovationWeekhttps://t.co/MBjgut4JTD
How will it work?
ONDC shall initially give special attention to helping onboard small and medium players. ONDC to plan for a well-developed Information, Education & Communication campaign to educate, encourage, and to address any apprehensions of various network participants. ONDC should evolve over time as a self-sustaining entity generating income for its operations and surplus for continuous investment in technology, processes, and network development. This is a very workable option considering the significant benefits it will extend to the ecosystem players.
We owe it to the millions of small sellers to show an easy way to participate in the new high-growth area of digital commerce.
NILEKANI
ONDC shall take all measures to ensure confidentiality & privacy of data in the network –
– ONDC shall not mandate sharing of any transaction-level data by participants with ONDC.
– ONDC will work with its participants to publish anonymised aggregate metrics on network performance without compromising on confidentiality and privacy
– ONDC will be compliant with the Information Technology Act, 2000 and designed for compliance with the emerging Personal Data Protection Bill.
ONDC protocols would standardize operations like cataloging, inventory management, order management, and order fulfillment. Thus, small businesses would be able to use any ONDC-compatible applications instead of being governed by specific platform-centric policies. This will provide multiple options for small businesses to be discoverable over the network and conduct business. It would also encourage easy adoption of digital means by those currently not on digital commerce networks.
ONDC is expected to make e-Commerce more inclusive and accessible for consumers. Consumers can potentially discover any seller, product, or service by using any compatible application or platform, thus increasing freedom of choice for consumers. It will enable the consumers to match demand with the nearest available supply. This would also give consumers the liberty to choose their preferred local businesses. Thus, ONDC would standardize operations, promote inclusion of local suppliers, drive efficiencies in logistics and lead to enhancement of value for consumers.