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Open Network For Digital Commerce (ONDC)

The Open Network for Digital Commerce (ONDC) aims to transform India's e-commerce sector from a platform-centric model dominated by Amazon and Flipkart, to an open network. It will not be a centralized platform, but will consist of separate buyer and seller apps that can connect via ONDC infrastructure. Buyer apps will allow customers to search for products, while seller apps will onboard merchants. When a buyer searches, the request will be sent to all seller apps. The first apps to register are Paytm and eSamudaay for buyers, and GrowthFalcons, GoFrugal, and Nearshop for sellers. ONDC also hopes to expand to other sectors and provide visibility and low costs to

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114 views6 pages

Open Network For Digital Commerce (ONDC)

The Open Network for Digital Commerce (ONDC) aims to transform India's e-commerce sector from a platform-centric model dominated by Amazon and Flipkart, to an open network. It will not be a centralized platform, but will consist of separate buyer and seller apps that can connect via ONDC infrastructure. Buyer apps will allow customers to search for products, while seller apps will onboard merchants. When a buyer searches, the request will be sent to all seller apps. The first apps to register are Paytm and eSamudaay for buyers, and GrowthFalcons, GoFrugal, and Nearshop for sellers. ONDC also hopes to expand to other sectors and provide visibility and low costs to

Uploaded by

shreya sarkar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Open

Network for
Digital
Commerce
(ONDC)
• Revolutionise the e-commerce ecosystem, break the dominance of
Amazon and Flipkart.
• Aiming to transform the sector from a platform-centric model to an
open network.
• Not a separate, centralized platform.
• There will be buyer-side apps which will be any application wherein
consumers can search for products or services.
• There will be seller-side apps, which will onboard sellers.
• These will receive buyer requests and publish the catalogue of goods
and services and fulfil buyer orders.
• When a buyer searches for a product or service on the buyer app, the
search request is multi-casted to all seller apps based on criteria such as
location, availability, and other preferences.

• The buyer then selects the seller based on their preference.

• Essentially, ONDC is unbundling the different services of an e-commerce


transaction that have so far largely been with a single entity.

• In ONDC, the buyer app and the seller app can be different entities
altogether. Even the logistics provider can be a separate entity.

• So far, among the first to register on ONDC as buyer-side apps are Paytm
and eSamudaay while GrowthFalcons, GoFrugal, and Nearshop are some of
the seller-side participants. Loadshare and Dunzo are also registered on the
logistics side.
• Currently there are 80 different platforms in different stages of integration,
ONDC CEO Thampy Koshy.
• It is “not restricted to the retail sector” and can be extended to any digital
commerce domain “including wholesale, mobility, food delivery, logistics,
travel, urban services, etc.”.
• A unique feature of the ONDC will be a network-level reputation ledger,
which will track whether sellers are offering genuine products and
resolving customer complaints. It will be like the seller-rating system on
individual e-commerce platforms, except that it will be common across the
network.
• The ONDC infrastructure will also entail a gateway between the buyer-side
app and seller-side app. The application will ensure discoverability of all
sellers in the network by multicasting the search request received from
buyer applications to all seller applications.
• Many smaller retailers and merchants are looking to jump onboard,
according to the Retailers’ Association of India (RAI) and the
Confederation of All India Traders (CAIT).

• Small merchants have often been at the mercy of the algorithms and the
commissions of large e-commerce platforms, and they will have a lot to
benefit from the ONDC, according to industry participants.

• “ONDC will bring a lot of visibility to small sellers at a low cost,” says
Bijou Kurien, chairman of RAI.

• ONDC also hopes to tap new online users from smaller towns.
Challenges Ahead

Where does the liability While there is currently no full- In this new framework Questions raised about the
lie? Cancellations, order fledged e-commerce policy, the where the services are nature of data sharing under
returns, sale of sector is governed by rules from now disparate, how will ONDC, especially the companies
counterfeit or defective various departments, including these rules apply? that will run the gateways
products, consumer consumer protection, competition, between the buyer apps and the
disputes foreign direct investment (FDI), and seller apps.
IT.

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