In theory, selling on Amazon sounds like a dream. You have an infinitely large online marketplace that millions of potential buyers visit daily. And yet, many Amazon sellers in India have had a torrid time trying to turn a profit selling on the eCommerce giant. From afar, Amazon seems like a fairyland where everyone is prospering and co-existing harmoniously. Up close, however, the platform resembles a battlefield where superior brands trample over small participants regularly.
Even if your sales look promising, things can turn on a dime quickly because guess what? Amazon is an unpredictable marketplace. Amazon sellers in India have therefore been looking for a viable “Plan B” which, until now, didn’t really exist. Yes, we’re talking about the revolutionary ONDC network initiative.
This article looks at the challenges of relying on Amazon as your sole selling option and why Open Network serves as a perfect solution for pan-India sellers.
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ONDC Network: An Effective Market Leveller
Open network is a government-led initiative to help SMBs and local Indian sellers grow digitally. The novel initiative will thrust India’s ambition of becoming an eCommerce powerhouse by democratising the digital landscape. Through it, Amazon sellers on ONDC network will have access to technologies and solutions typically reserved for large corporations.
The ambitious project will be India’s next big market disruptor after UPI. ONDC network will allow merchants to move away from Amazon’s platform-centric model in favour of an open network model. The government estimates that the decentralised network will onboard over 900 million buyers and 1.2 million sellers in the next five years.
With an ONDC network-compliant solution like Mystore, Amazon sellers in India can showcase their brand and products to pan-India audiences. Through Mystore, any independent merchant or MSME/SMB can gain instant visibility and match with buyers based on search parameters (location, price, delivery times, etc.). Simply register on the Mystore seller app and migrate your entire product catalogue from Amazon to ONDC network in just a few clicks.
At a time when eCommerce giants are calling all the shots, the revolutionary initiative comes as a breath of fresh air. All eCommerce participants (sellers, buyers, logistics partners, tech firms, etc.) will come under its umbrella. That way, Amazon sellers on ONDC network could address several issues about their poor visibility, higher commission rates, and non-transparent selling policies.
To summarise, a democratic platform will make the entire eCommerce paradigm more inclusive, non-predatory, accessible and affordable to all scales of businesses.
Why ONDC network is “Good News” for India’s SMBs on Amazon
To understand how small Indian merchants will benefit from having an open network, let’s see what problems they frequently encounter when selling via Amazon.
1. The market competition is extreme (and unfair)
Like any other platform with no barriers to entry, Amazon is flooded with hordes of participants. As if a select few merchants didn’t already dominate the marketplace, honest sellers have to contend with shady vendors too. Their underhand tactics (from predatory pricing, posting mass negative reviews, counterfeit trademarking, etc.) leave non-tech-savvy Indian sellers high and dry.
Unfortunately, too many fishy sellers have taken over the Amazon marketplace. SMBs have to look elsewhere to rescue their business. Open Network provides them with a level playing field. Any seller can register on ONDC network and be immediately discoverable to millions of potential buyers. You can also choose your preferred logistics partner for better fulfilment and customer experience.
Amazon sellers on ONDC network can integrate multiple sales channels with Mystore and acquire maximum visibility with the lowest operating costs. Talk about a win-win situation.
2. Tired of paying hefty commission fees? Too bad
Hefty commission fees often give Amazon sellers in India sleepless nights. While the giant corporation is amassing record profits, its affiliated sellers continue to operate on razor-thin margins.
For instance, the referral rate was previously 3.5% and has now risen to 5%. Among other things, Amazon will now charge a commission fee of 19.5% of the sale value from the clothes category's previous 13% fee. Also, the commission rate for pet supplies has increased to 12% from 7%. (source: The Economic Times).
Needless to say, sellers are less than impressed with such hefty commission rates. Thankfully, such exorbitant fees can be avoided by switching to a more dynamic, seller-friendly platform: ONDC network. Mystore seller app offers many of the features that Amazon does but for a fraction of the cost.
For zero upfront cost, pan-India merchants can increase their sales by upgrading to an ONDC network-compliant solution - Mystore. Your Amazon to ONDC network journey is made simple thanks to Mystore’s easy-to-use dashboard. In contrast to Amazon, Mystore-registered sellers pay a nominal transaction fee per order.
3. Small businesses often struggle with poor traffic and visibility
Amazon has encouraged an atmosphere of cutthroat competition for its own gain. Prominent brands openly sabotage the smaller players using any means necessary. This reflects in a seller’s rapidly declining traffic, and Amazon offers little help beyond an AI-generated query response. The fact that Amazon’s ranking algorithm is non-transparent and always puts white-collar vendors at the top is also concerning.
That’s why so many Amazon sellers in India are looking elsewhere for a more merchant-friendly platform. Most e-retailers see ONDC network as a far more open, efficient, and friendly platform. Not to mention its nationwide reach, helping them establish a far-reaching presence.
Amazon sellers on ONDC network gain instant brand recognition using Mystore and unlock new sales opportunities in no time. Even sellers with no existing eCommerce setup can leverage the open network for visibility. They need the feature-rich Mystore seller app to register to seamlessly upload their catalogues on the open network.
4. Sellers don’t have a say in their business
Amazon retailers are appalled by how little control they have over their businesses. It doesn’t take much to have your seller account banned overnight. Amazon takes its policies very seriously, leading to a seller losing his entire business for an unintentional violation. Also, sellers are often forced to set incredibly lower prices which is excellent for the customer but can cause a company to bleed financially.
Amazon’s terms of service outright prohibit selling products at higher prices than other platforms. Failing to do so may result in dwindling traffic and, in some cases, sellers losing their Buy Box. Amazon sellers in India have also complained about being forced to sell their products on Vendor Central (a platform where you sell in bulk to Amazon, who then resells products to buyers).
Why? Simple. So that Amazon generates better profits by registering them as a 1st party vendor rather than a 3rd party vendor.
Hence, It’s no surprise that vendors find it far easier to operate their business peacefully on the open network. Also, Mystore channel integration lets you add your existing Amazon shop to a single seller account. This helps you upload, manage, and deliver orders in one place. Mystore lets you completely control your eCommerce venture and mould it into your vision.
Conclusion
Mystore provides you with all the tools and resources you need to boost your existing Amazon business. With a simple registration process, Amazon sellers can begin uploading their products and marketing them to pan-India buyers throughout the ONDC network. You also have the option to own your B2C domain for a more professional brand identity. Plus, our comprehensive admin panel allows you to manage orders and payouts easily.
So if you're looking for a convenient, easy-to-use solution to launch your brand on the open network, look no further than Mystore seller app. Register with Mystore and start selling!