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ONDC Network - A new dawn in India’s eCommerce landscape
In December 2021, the Government of India (GoI) proudly announced the launch of ONDC network, citing it as a game-changer that would completely transform the Indian eCommerce industry. Through ONDC network, the government hopes to tilt the scales back in favour of the minor players - SMEs (B2C, B2B & D2C), logistics providers, Kirana shops, retailers, tech firms, etc.
The open-network initiative will not only help local sellers get on the map but also benefit the customers by giving them more choices. Twelve months later, the initial implementation of ONDC network succeeded with flying colours. Started as a non-profit, centralized open-network initiative, ONDC network India has already made giant strides by bridging the gap between sellers and buyers.
As of October 2022, the platform had been tested in 10+ pilot cities and focused primarily on Indian retailers and food/ration delivery.
However, the open network will soon incorporate all mainstream industries such as tourism, manufacturing, pharmaceuticals, and automobile, effectively covering the entire spectrum of eCommerce in India. ONDC network is estimated to reach a gross merchandise value of $48 Bn by 2027 (source: The Economic Times). ONDC network is estimated to expand into a $200 Billion juggernaut by 2027, with its reach expanding to hundreds of cities and millions of sellers across the country.
2023 - The year to adopt ONDC network
Unlike traditional eCommerce, there are no hidden costs, no strenuous policies, and no contractual lock-ins with ONDC network. No matter your background, resources, or previous experience dabbling in eCommerce, you can transform your traditional store into a fully-functional digital enterprise. Using an ONDC network seller app, you can easily upload your catalogue, manage orders, and set terms of service suited to you.
Moving forward, ONDC network will broaden its services to include other industries (manufacturing, logistics, travelling, etc.) and not just be limited to food delivery and retail companies.
For that reason and more, here’s why 2023 is going to be the year where ONDC network truly takes off:
1. The platform is fast gaining traction
By 2027, the Indian government plans to accommodate over 90 crore buyers and 12 lakh registered sellers on the ONDC network. This unified platform will help build a network of retailers, customers, vendors, and partners under one roof.
Adopting ONDC network in 2023 will allow early birds to put their brands on the map before their competitors. Leverage the benefits of ONDC network while the concept is still foreign to many businesses, and you will be able to access a completely untapped market. With infinite growth potential, the sky's the limit for you!
2. More and more companies are jumping aboard
The last several months saw many renowned eCommerce players and multiple digital payment companies (like PhonePe and Paytm) are expected to be integrated with the network. “Open network project” has amassed interest from all levels of stakeholders - vendors, logistics players, service providers, you name it. It’s a thriving environment full of possibilities for players of every size.
On the opposite end of the spectrum, local sellers and SMEs are migrating to the ONDC network to break free from the constraints of exploitative policies. This has given buyers the luxury to choose from multiple vendors through a connected buyer app. All parties, including customers, vendors, and logistics providers, find ONDC network an ideal solution to their problems.
3. It is far more cost-effective
Small, local-owned businesses have been the backbone of the Indian economy for centuries. However, since the advent of “online shopping”, two prominent players have created a duopoly within the industry. More than 60% of India’s eCommerce landscape is controlled by two giant marketplaces, allowing them to bully the small players into complying with their business terms.
High commission rates (25 to 30% of cart value) and discriminatory policies have been commonplace. This will dissolve as ONDC network incorporates more sellers and cities. Any SME can register on ONDC network and widen its selling capacity in exchange for a nominal commission fee. This will cost you several times less than the standard commission rate.
4. Your customers will benefit from ONDC network-connected apps too
From a customer’s perspective, shopping from a new eCommerce store is still a matter of faith and uncertainties. To this day, shoppers hesitate to buy from a vendor they barely know. Furthermore, customer retention is more complex than customer acquisition. Through a functional ONDC network seller app like the Mystore buyer app, you can provide customers multi-lingual support, multiple payment options, flexible shipping, etc., to improve your chances of retaining them.
One of ONDC network’s biggest selling points is its unmatched convenience and inclusiveness. Customers can communicate seamlessly with their known local sellers rather than an anonymous entity, thus building trust. Now, imagine these fresh prospects finding their local shopkeeper - who they know and trust is selling goods online; naturally, they’ll want to buy from them.
5. ONDC network is an industry-wide game-changer
ONDC network aims to improve its eCommerce penetration significantly over the next five years. But what makes it such a game-changer? Firstly, ONDC network is the first-of-its-kind initiative to transform the eCommerce ecosystem from a platform-centric model (adopted by most marketplaces) to an open-network model. As a result, local sellers will get equal visibility & business opportunities across their domain.
Secondly, being on the ONDC network eliminates the biggest problem of any brick-and-mortar business:- finding a buyer. A customer makes a product inquiry and is matched to the seller (you) based on parameters such as location, availability, prices, reviews, etc.
With ONDC network, the government plans to reach over 100 cities with over 200 medium-to-large retailers onboarded by January 2023. Such a widespread seller-buyer network will clearly be a game-changer for the entire digital economy of India.
In Conclusion
Mentioned above are just a few reasons why 2023 promises to be the year “Mission ONDC network” truly showcases its tremendous potential! Before selling through the open network, you must register as a seller on ONDC network. But don’t worry, you can do so without breaking a sweat. Register with the leading ONDC network-connected marketplace, Mystore seller app and start your journey as an eCommerce entrepreneur today!
Mystore’s advanced admin dashboard is meticulously developed to assist Indian sellers who aren’t tech-savvy. With Mystore, sellers can -
- Upload catalogues
- Approve orders
- Monitor sales
- Receive payments
- Obtain feedback
- Change prices/discounts
…All in just a few clicks!
With zero subscription cost, you can become a certified ONDC network-affiliated merchant capable of handling all aspects of your digital store singlehandedly.
Hence, if you happen to be doing business the same way, and would like to jump into an untapped market, then you can register with the best-of-breed eCommerce solution and woo your customers with a wealth of exciting features (like integrated marketing tools, mobile-first technology, multi-lingual support, multiple payment options, etc.).