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Top 5 E-commerce Challenges ONDC Network Aims To Address

About ONDC Network

MystoreFeb 21, 2023

ONDC network is here and is already transforming India’s promising but topsy-turvy eCommerce market.

At a time when online shopping is the norm (as reflected in India’s eCommerce market rise from $22 Bn in 2018 to $350 Bn in 2030), all sellers must be finding it easy to churn out profits, right? Truth be told, online retailers, especially small players, are struggling to stay afloat in this cutthroat online marketplace, and ONDC network aims to offer some respite to them.

This article aims to highlight the challenges of eCommerce in India and how sellers can mitigate them when they sell on ONDC network.

Traditional eCommerce is fundamentally flawed

India’s eCommerce industry has seen exponential growth ever since big players like Amazon and Flipkart entered the fray. But these platforms have generated a mixed response so far. While customers fancy buying from these platforms for convenience, economical prices, and lightning-fast deliveries, it’s not smooth sailing for the sellers.

These monopolistic marketplaces have taken over the entire eCommerce chain, giving them complete freedom to implement their own policies. Big players are generating record profits while treating SMBs and hyperlocal merchants as pushovers.

Top 5 ecommerce challenges and how the ONDC network aims to resolve them

From lopsided policies to overpriced commission rates, eCommerce presents a host of challenges. What are the biggest hurdles eCommerce sellers in India face, and how the ONDC network helps resolve them? Let’s find out:

1. Hefty commissions and poor profit margins

Contrary to what you might have heard, selling online is far from cheap. Amazon and Flipkart may offer access to a larger audience, but they charge a fixed commission cost (as high as 35% of cart value) for their services. On top of that, Amazon demands that you sell your products for the lowest price and offer free shipping. Also, what if you want to market your products? Social media campaigns, paid ads, and SEO are effective marketing tools, but they cost an arm and a leg.

As you can see, customer acquisition costs with traditional eCommerce are incredibly high and leave you with little profit margins. Conversely, MSMEs and local startups can afford to sell on ONDC network and access the same widespread audience. All you need is a feature-rich platform like Mystore and begin your selling journey with zero upfront costs.

2. Getting proper visibility and reach

Amazon’s low barriers to entry have made the platform bloated and chaotic. The oversaturated platform has made it impossible to stand out from the crowd and gain the necessary exposure. Also, these platforms have long been suspected of implementing shady algorithms to favour a few “cherished” names while limiting the visibility of regular sellers.

Instead, imagine a transparent and open platform that serves equal visibility for all! That’s right; as you register on ONDC network, your products are immediately discoverable across multiple digital channels amongst more prominent sellers. From there, buyers can make a product enquiry via a compatible buyer app and, based on their search parameters, they will instantly be matched with you. 

Additionally, the Mystore seller app, with its powerful, in-built marketing tools to help maximise your audience reach. Create an instant splash in your industry and build a professional business image with Mystore.

3. Escaping shady practices and preferential treatments

Unfortunately, the eCommerce market is riddled with shady businesses ready to cut corners and adopt whatever nefarious means it takes to gain an unfair advantage. Whether it’s stolen listings, predatory pricing, or bombarding a seller with negative reviews, dodgy sellers regularly threaten small merchants.

Clearly, not all eCommerce sellers get equal support and growth opportunities. In addition to these hurdles, many still suspect platforms like Amazon of preferential treatment too. In fact, the Competition Commission of India (CCI) announced in 2020 that it was investigating Amazon following a complaint from a trade group that they were promoting preferred sellers.

However, that is not something you ought to worry about if you sell on the ONDC network. Built on a decentralised framework, ONDC network houses only legitimate sellers, buyers, and logistics partners. Hence, you can operate your e-business without constantly worrying about shady sellers using underhand tactics.

4. Improving vendor-customer relationship

Establishing and maintaining robust customer relationships is crucial to any business’s success, and Amazon is no different. Unfortunately, the platform does precious little to help bridge the gap between its sellers and buyers. For instance, Amazon sellers don’t have instant access to customer insights, thus keeping them from understanding their customers’ likes/dislikes.

However, merchants can easily access all key data points on a feature-rich ONDC network connected marketplace like the Mystore seller app. This helps them understand their target audience better and strategise accordingly using data-driven methodologies. Sell on ONDC network and conduct seamless interactions and transactions with pan-India buyers.

5. Logistics remains a concern in most remote towns

Given India’s sheer size, it’s impossible to set up a solid logistics infrastructure encompassing hundreds of towns. For eCommerce sellers, ignoring logistics could result in missing out on millions of potential customers. And you can forget the Amazons and Flipkarts of this world to come to the rescue.

Thankfully, the central government has identified the weak point in our current e-market and thus offers on-demand logistics to affiliated suppliers. Sellers can register on ONDC network and send orders nationwide using shipping partners approved by the open network. Mystore seller app lets you connect with a host of approved logistics partners on the open network to improve your customer experience.

Join the ONDC network revolution with Mystore

Mystore does the heavy lifting of running a fully-functional eCommerce store on your behalf. SMBs, D2Cs and local brick-and-mortar owners can launch a brand-new online business or streamline existing one to align with customers’ needs with the Mystore seller app. The advanced admin dashboard lets you list products, manage orders, collect payments, track fulfilment, and maintain logistics in just a few clicks.

Built on advanced mobile-first technology, Mystore offers a powerful interface that provides a seamless user experience. Register on ONDC network today with Mystore and futureproof your business for uninterrupted growth.

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