How ONDC Can Empower MSMEs in India?

, 19-Dec-2023

Access to wider markets, lack of business expertise, and technology have long been problems for India’s MSMEs Sector. Even while big e-commerce platforms are more accessible and customers from all geographic areas connect to them, hyperlocal firms that may offer the same goods and services are often neglected. However, MSMEs have now found a powerful weapon to broaden their clientele and grow their business, i.e., Open Network for Digital Commerce (ONDC). 

The government-backed initiative ONDC aims to implement and encourage open networks for the interchange of products and services across e-commerce businesses, with a prime focus on Micro, Small, and Medium-Sized Enterprises (MSMEs). The platform has been designed to make it easier for MSMEs to be listed among the e-commerce giants and actively engage with a wider customer base. Once a small business lists its product catalog by implementing the open standards of ONDC, customers can discover them easily on e-commerce platforms. Now, the Best ONDC Seller App, uEngage ONDC is making things seamless for the sellers so they can gain the most out of this platform.  

The open network ONDC ensures that e-commerce marketplaces have end-to-end control over the complete customer journey, from seller onboarding and customer acquisition to payment processing and order fulfillment. With ONDC, the Indian Government aims to end the monopoly of foreign-funded players like Amazon and Flipkart that are dominating the e-commerce market. 

Find Out How ONDC Can Empower MSMEs in India

With a view to eliminating monopolistic structures and encouraging independent participation, ONDC offers a platform-centric strategy that promotes openness and equal opportunities for all e-commerce sellers. The platform has left no stone unturned to authorize MSMEs, expand the consumer base, and provide affordable commission structures. Let us explore How ONDC Can Empower MSMEs in India:

Direct Connections with Customers

How ONDC Can Empower MSMEs in India?

One of the fundamental ways ONDC Can Empower MSMEs in India is by providing them the opportunity to connect directly with their customers. Till today’s time, many MSMEs had to rely on middlemen to reach their customers which often led to increased costs and less revenue. On the contrary,  businesses onboarded to ONDC can connect to their customers directly without having the need for middlemen, which ultimately lowers costs and increases transparency. 

Lowest Commissions on Orders

How ONDC Can Empower MSMEs in India?

Online sellers on established platforms like Amazon, Flipkart, Zomato, and Swiggy face a number of issues, including high commissions, biased policies, platform block-offs, and whatnot. ONDC has been making waves in the Indian E-Commerce Market for all good reasons, and one among them is its path to the lowest commissions, as offered by uEngage ONDC. While these popular e-commerce platforms are oppressing with 18-25% commission fees, ONDC is sticking itself to just 5-8%. This drastic reduction in commissions decodes to higher profit margins for MSMEs which further allows them to have greater control over their pricing strategies. 

Enhanced Market Reach and Visibility

How ONDC Can Empower MSMEs in India?

Another key perk offered by ONDC to MSMEs is enhanced market visibility and wider reach. The Open Network for Digital Commerce enables MSMEs to interact and showcase their products & services to a big segment of the audience across PAN India. By utilizing the infrastructure of ONDC properly, businesses can tackle and overcome geographical barriers and step foot into new and untouched markets. This will allow businesses to expand their reach and increase revenue growth.

Better Profits to Rural MSMEs

How ONDC Can Empower MSMEs in India?

The Indian government understands that a Grameen e-store located in a rural area also wishes to expand its horizon on a vast level. Even that small store is also established with hopes of making its products accessible to as many people as possible for better profits. However, making its place among a crowd of huge e-commerce giants was not easily possible. That’s where ONDC enters the door. It welcomes all the Grameen e-stores located in the rural market to list their products on the ONDC platform and reach their unreachable customers.


ONDC will turn out to be a huge advantage for MSMEs since they can connect to a vast pool of customers with ease, eradicate the middlemen barriers, and independently manage their business without dealing with higher commissions. If you belong to the MSMEs sector and are eager to give a stretch to your business, this is your time to make the most of this platform.

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