Ever since the world witnessed the digital revolution, e-commerce has taken the traditional business landscape by storm. Right from the existence of brick-and-mortar stores to the changing consumer behaviour, e-commerce has influenced every aspect of the business by the force of digitalization. With the increasing competition in the market, every single e-commerce business is hell-bent on creating hegemony in the marketplace by single-handedly taking over the small players. This is often seen in multiple sectors like telecom, FMCG, food delivery chains, grocery, etc. This often results in an unfair and monopolistic business environment globally. Governments all over the world are taking initiatives to maintain fair competition in the business and India is no exception.
What is ONDC, is a pioneering effort undertaken by the Indian government to transform the country’s digital commerce environment. Its goals are to encourage fair competition, improve user convenience and e-commerce deliveries and inspire innovation. This fosters creativity while also broadening the range of possibilities available to Indian consumers, resulting in a diversified and dynamic digital commerce market.
Furthermore, ONDC seeks to develop a smooth and user-friendly platform that eliminates the need for several delivery apps, making online shopping more pleasant and convenient.
Let us now understand more about ONDC’s impact.
What is ONDC?
The “ONDC” refers to the “Open Network for Digital Commerce,” a digital platform initiative introduced by the Indian government to promote e-commerce and provide a level playing field for various stakeholders in the e-commerce ecosystem.
The Essential Features of ONDC
- Interoperability: ONDC aims to establish a common digital infrastructure that enables interoperability among different e-commerce platforms, marketplaces, and service providers. This allows for seamless data exchange and transactions across the ecosystem.
- Data Accessibility: The platform is designed to ensure that critical e-commerce data, such as product listings, pricing information, and seller details, is accessible to a wide range of stakeholders, including small and medium-sized enterprises (SMEs), startups, and consumers.
- Level Playing Field: ONDC seeks to create a level playing field for all participants in the e-commerce sector. This includes reducing entry barriers for new players and promoting healthy competition.
- Transparency: Transparency is a key principle of ONDC. It intends to bring transparency to pricing, product information, and policies, making it easier for consumers to make informed choices.
- Empowering SMEs: One of the primary objectives of ONDC is to empower SMEs and startups by providing them with access to a wider customer base and the necessary digital tools and resources to compete effectively in the e-commerce space.
- Digital Payments: The platform may facilitate digital payments and transactions, making it easier for businesses and consumers to engage in online commerce securely.
- Regulatory Compliance: ONDC is expected to align with existing regulations and promote compliance with e-commerce laws in India.
- Innovation: The initiative encourages innovation in the e-commerce sector by providing an open and collaborative environment for technology development and integration.
- Government Oversight: The Indian government is likely to play a central role in overseeing the ONDC initiative to ensure that it aligns with national policies and objectives.
What is the Need for ONDC In the Digital Commerce Space?
The potential of e-commerce in India, where millions of vendors rely on selling goods and services to make a living, is still mostly unrealized. Surprisingly, e-commerce has only been adopted as a feasible option by a tiny minority—just 0.125% of the total, or roughly 15,000 businesses. As a result, the vast majority of sellers, particularly those from small towns and rural areas, are unable to take advantage of the many possibilities accessible through the online marketplace.
The goal of the ONDC is to abandon the platform-centric paradigm that is now prevailing globally, and adopt an open-network model, much like the successful Unified Payments Interface (UPI) initiative in India.
How to Use ONDC?
There are a variety of ways you can access the ONDC platform. Some of them include:
- Paytm
- Mystore
- Craftsvila
- MagicPin
- Spice Money
- Pincode
Conclusion
ONDC can turn out to be a game changer in the Indian digital commerce space. It can change the market due to its emphasis on fair competition, user ease, and support for local businesses. Overall, the monopolistic and centralized nature of the current online marketplace can be reduced or altered by promoting ONDC on a massive scale.
Given the rising e-commerce in the country, small and medium-scale businesses often battle the challenges of e-commerce deliveries. NimbusPost, one of the leading shipping aggregators in India, helps small merchants overcome these challenges by offering them advanced shipping and logistics solutions at affordable rates. They work with 27+ top courier partners in the country to reduce sellers’ dependency on a single courier who often charges them heavily.
Thus, you may have understood the thought behind ONDC and what is its impact. For more such informative articles, check out NimbusPost.com.
