Decoding ONDC – How ONDC Works to Simplify Digital Commerce with an Open Network

Digital commerce is buzzing with the news of the new player ONDC. Open Network for Digital Commerce or ONDC is the next new thing with its ability to bring buyers and consumers all together at one open platform pushing e-commerce to another level.

ONDC or Open Network for Digital Commerce is an Indian government initiate that when and if implemented would open a door to a wider e-commerce marketplace, wider opportunities and wider scope to sell/shop for seller/buyers. In simpler words, ONDC is a platform that will change the protocol for product cataloging, vendor search, and price comparison with an open network like UPI or Unified Payments Interface.

This open network model of ONDC means a consumer is no longer stuck to the limitation of browsing Amazon or Flipkart separately to search for a product and then check their prices separately and then look for other options before finding the right deal. ONDC means an open network platform where a buyer searching for a product X will find options from all major sellers and networks at one platform without the need to move to another platform.

ONDC aims to create a very possible scenario of bringing local commerce online, thus making it possible for segments like grocery and food delivery, mobility, travel and hotel booking to be easily discovered, engaged and run by any application. To get access to ONDC benefits, sellers or the participating apps must register or join the open network to get access to this UPI model which allows bigger and better competition.

Key features of ONDC

• Restricting digital and e-commerce monopolies
• More opportunities to small scale sellers
• Creating a platform-centric system with an open network
• Enhance digital visibility for sellers and buyers 
• Wider eCommerce interaction through an open network
• The disintegration of silos to the formation of a single open network to widen the market 

Presently, ONDC is being tested and run at the pilot stage by the Indian government and the goal is to reach over 100 cities in the next 6 months. Indian Government aims to change and revamp the value chain, and e-commerce operation standards, augment logistics efficiency, and tune in consumer value by August 2022.

Implementation of ONDC has been welcomed by both big gun retailers and e-commerce networks as well as small online retailers. Especially the new entrants or retailers trying to test the water of digital commerce seem to be one to boost the most by overlapping the monopoly of big fish retailers as well as finding inclusivity.

Uengage and ONDC

 Uengage with its power to bring your cloud kitchen, restaurant, or saloon direct to consumers, could add more inclusivity, more visibility, and high scale with the open network of ONDC.

Open Network for Digital Commerce allows the display of seller products and different services from participant retailers and sellers to all open apps and networks. Thus, Uengage with ONDC enjoys the ability to turn your digital business into an augmenting snowball by acquiring a higher reach, larger access to consumers, presence on open network apps, etc.