According to an October 2020 CB report, around 90% of India’s total commerce is still done via brick-and-mortar channels. In a country where the internet is daily becoming more accessible and customers are becoming more tech-savvy than ever, now is the time for a phenomenon like ONDC Network.
Introduced as a decentralised, not-for-profit network, ONDC network intends to create an inclusive digital infrastructure, incorporating the entire eCommerce ecosystem.
Table of Contents
- ONDC Network at a Glance
- 5 Changes that ONDC Network will bring to India’s e-commerce paradigm
Open Network for Digital Commerce Protocol is cited as a step toward democratising India’s fragmented eCommerce industry dominated by global giants like Amazon and Flipkart. Following UPI's footsteps, ONDC network will further digitise India’s market sphere by onboarding 1.2 Mn local sellers and 900 Mn buyers on a unified network by 2027.
By moving it from a platform-centric model to an open network for buying and selling goods and services. Sellers who register on the ONDC network will immediately have a business presence in 100+ cities and millions of pan-India buyers. The network will soon accommodate major tech firms (like Google), payment portals (like PhonePe), and logistics providers.
eCommerce participants who sell on ONDC Network will have a nationwide digital presence and will not have to deal with the platform-centric approach of monopolistic marketplaces like Amazon. On the open network, the entire value chain is standardised. Sellers can use an ONDC Network seller app to quickly upload catalogues, track orders, manage inventory, address feedback, access data points, and so on.
From better growth opportunities to lower business costs, ONDC network is expected to usher in these five crucial changes in India’s digital commerce:
Previously, there were multiple barriers to seller-buyer communication. With ONDC network, sellers and customers don’t have to use the same apps/platforms to interact or conduct transactions. Sellers can register on the ONDC network using the feature-rich Mystore seller app and enlist their entire catalogue across multiple sales channels. Subsequently, buyers can locate any relevant product, retailer, or service via an ONDC protocol compatible buyer app.
A unified payment interface promotes quick and seamless transactions too. Mystore-registered sellers can quickly address customer feedback/queries for an optimum shopping experience. With the open network, all network participants can freely choose who to do business with without being influenced by third-party platforms or intermediaries.
Traditionally, eCommerce has been anything but fair game, especially to small sellers. Local, inexperienced merchants have to compete with other prominent players just to have their products visible across popular marketplaces like Amazon, Flipkart, etc.
Giant corporations use their superior technological and financial resources to keep the limelight on themselves. This is obviously harmful to SMEs, but buyers also suffer due to limited options. Amazon sellers complain that their visibility is minimised by shady algorithms that always put their established competitors on top.
On the other hand, ONDC network is a neutral, inclusive platform that facilitates nationwide discoverability to all sellers with no shady policies or preferential treatments. New and remote e-sellers can register on the ONDC network and operate on a level playing field. Mystore seller app enables you to join the open network for zero upfront cost. Once you start receiving orders, you only pay a nominal transaction fee to sell on the ONDC network.
Before this game-changing initiative, Indian SMBs and remote sellers only had marketplaces like Amazon and Flipkart to do business with. Besides hefty commission rates, sellers must deal with contractual lock-ins, predatory pricing, non-transparent policies, and non-transferable ratings./reviews etc., when selling on these platforms.
As more sellers integrate with the ONDC network, the entry barriers will be removed from the large, multi-national corporations. All platforms (including Amazon, eBay, Flipkart, etc.) must comply with the guidelines, meaning equal opportunities and visibility to all. Indian sellers feel encouraged to register on the ONDC network and instantly connect with their target audience.
It’s no secret that platforms like Amazon eat up a large chunk of a seller’s profits through commission and acquisition fees. And yet, their selling policy demands that the seller makes the products available a the lowest prices. Add the cost of marketing (paid ads, social media campaigns, SEO, etc.), and there’s simply not much left in terms of actual profits.
On the other hand, the ONDC network stays true to its “not-for-profit” mantra by charging only a minimal transaction fee per order. This fee is just a fraction of the overall commissions charged by popular platforms like Amazon. Merchants bear no upfront costs when selling via the Mystore seller app while accessing a broader customer base.
Mystore’s cutting-edge marketing tools let you leverage the usual benefits of selling on a traditional platform without costing a fortune for it.
Having competent logistics support is key to any business’s success. Unfortunately, most newbie sellers don’t have the a) connections or b) the know-how to acquire first-rate logistics. While Amazon may give you a platform to sell on, you're on your own when it comes to delivery capabilities.
Once again, the ONDC network comes to the rescue here. Register on ONDC network and choose from a list of on-demand, approved logistics partners. Mystore seller app gives more options on logistics and fulfilment for improved scalability. So, you can enable interstate delivery and expand your business territory.
The ONDC network emerged from its initial implementation with flying colours. The next step is to expand the network’s reach to hundreds of towns and cities across India. Remote sellers interested in taking their business online but lacking any eCommerce expertise can finally realise their dreams by registering with the Mystore seller app.