The Indian government has been at the forefront of digitizing the economy, with various initiatives aimed at promoting innovation, inclusivity, and sustainable growth. One of the latest initiatives, Open Network for Digital Commerce (ONDC), is set to revolutionize India’s e-commerce landscape. ONDC is a government-backed initiative designed to break the monopoly of large e-commerce platforms and create a level playing field for businesses of all sizes.
Launched by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC aims to establish an open and interoperable digital commerce network. This allows buyers and sellers to connect and transact, regardless of the platform they use. By promoting an open network, ONDC offers a more decentralized approach to e-commerce, giving smaller businesses the opportunity to compete with larger, established players.
The Indian government envisions ONDC as a crucial tool to democratize digital commerce, making it more accessible for micro, small, and medium enterprises (MSMEs), rural entrepreneurs, and even local kirana stores. The initiative seeks to boost innovation, lower entry barriers, and ensure that small businesses can thrive in the digital age.
How ONDC is Benefiting Business Growth in India
ONDC is expected to bring sweeping changes to the way businesses operate in India’s digital economy. The key benefit is that it eliminates platform dependency, allowing businesses to list their products and services on an open network, giving them visibility across various e-commerce platforms.
Here’s how ONDC contributes to business growth
Level Playing Field for Small Businesses
By decentralizing digital commerce, ONDC ensures that smaller businesses no longer have to rely solely on the few large e-commerce platforms. This opens up new avenues for growth, as they can now compete on equal terms with larger enterprises.
Increased Market Reach
Lower Costs and Improved Margins
Standardized Processes for Greater Efficiency
Improved Technological Access
Building Trust with Customers
How to Enroll on ONDC and Avail Its Features
Enrolling on the ONDC network is designed to be straightforward, ensuring that even the smallest of businesses can easily participate.
Here’s a step-by-step guide on how micro and small businesses can join the ONDC initiative:
Choose a Platform Partner
To join the ONDC network, businesses need to collaborate with a platform partner that is registered with ONDC. Several digital commerce platforms are integrating ONDC capabilities into their systems. Businesses can choose a partner that suits their needs, such as platforms for e-commerce, logistics, or payment processing.
Onboarding Process
Once a platform partner is selected, businesses will need to “register and onboard” their products and services onto the ONDC network. This process will include:
Listing products with proper descriptions and prices.
Setting up “inventory management” to ensure products are available for purchase.
Integrating “payment options” through ONDC’s payment gateways.
Catalog and Inventory Management
ONDC requires sellers to maintain a standardized product catalog and manage inventory in real time. This ensures smooth transactions and provides a consistent experience for customers across all platforms. Platform partners will assist businesses in managing these features.
Accessing Logistics Partners
One of the key benefits of ONDC is the integration of logistics services. Small businesses can connect with logistics providers through the network, enabling them to offer deliveries across India. This makes it easier for small businesses to manage shipping and fulfillment without the complexities of negotiating with multiple service providers.
Customer Service and Reviews
To build trust with customers, ONDC encourages sellers to maintain transparent communication and offer responsive customer service. Small businesses can benefit from customer reviews and feedback on the ONDC network, helping them improve their services and build credibility.
Future Scope of ONDC
The potential of ONDC goes far beyond its initial rollout. In the future, ONDC is expected to completely transform the Indian e-commerce landscape by creating an open and inclusive ecosystem that supports innovation, competition, and growth.
ONDC represents a bold and innovative approach to transforming India’s e-commerce sector. By creating an open and decentralized digital commerce network, the Indian government is ensuring that small and micro businesses can participate in and benefit from the digital economy. With easy enrollment, lower costs, and access to advanced technology, ONDC provides a powerful platform for MSMEs to scale and thrive in a competitive marketplace. The future of Indian e-commerce looks bright, and ONDC is poised to be a driving force behind its growth and democratization.