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How a Seller Can Join ONDC?

Abhilasha, 27-Nov-2022

How a Seller Can Join ONDC?

In April 2022, the Government of India launched an e-commerce revolution Open Network for Digital Commerce. ONDC is expected to change the course of digital commerce in India in a span of 2 to 5 years by increasing e-commerce consumer purchase and seller participation. The open UPI-like model of ONDC is how the Indian government set to democratize its digital market for millions of start-ups, small retailers, and big brands to local shopkeepers with widespread access to consumers and a value chain of growth.

From logistics brands, like Ekart, and digital payment platforms like PhonePe to services like Dunzo, many companies are set to join the ONDC integration. Major players in the Banking sector are in talks to acquire their stakes and roles in opportunities opened by ONDC's digital market ecosystem. Apparently, Google too is currently in talks with the platform of ONDC to find a way to integrate with its open network.

Current status of ONDC

ONDC is currently being tested in the pilot phase with selected vendors and in selected cities to get feedback and suggestions on its operations. Cities like Coimbatore, Delhi NCR, Shilong, Bengaluru, and Bhopal have been selected for the ODNC pilot phase where operations are being observed for retail and restaurants but according to the commerce ministry, ONDC will spread to mobility and travel sectors as well. In the coming months, ONDC would be expanded to over 100 cities across the country with an aim to rope in 10 million merchants and 30 million sellers.

 

How does ONDC work?

Working on the model of Unified Payments Interface, ONDC will offer an open-source basis and neutral network, which means an equal platform to market players from sellers, vendors, and consumers to logistic partners. In an open network when sellers and buyers participate on ONDC, any consumer looking for a product on an app or registered platform of participant A can also see similar searches from participant B and participant C on the same app or platform, without moving to the app of participant B and participant C.

For example, if Amazon and Flipkart both join ONDC, then a consumer looking for a product on Amazon will also see searches from Flipkart on Amazon itself without moving to Flipkart.

 

How ONDC will help sellers?

ONDC with its power to offer equal opportunities to all participants is bound to amplify the e-commerce market and e-commerce consumer simultaneously. Currently, the e-retail market of India is quite low in comparison to countries like the UK, South Korea, and China. The limitation is not just because of the dominance of players like Amazon or Flipkart but also the limited reach of digital commerce to rural areas and small cities.

Sellers connecting with ONDC will be able to get displayed and available to buyers from multiple platforms. With ONDC buyers and sellers don’t have to be registered on the same network or platform.

With access to wider consumer-ship, ONDC will enable small retailers, Kirana shops, new sellers, and other vendors to join e-commerce, and sell their goods and services to a huge consumer circle of over 25 crores buyers spread across hundreds of cities in India.

Until now, many sellers have been away from e-commerce, some are yet to discover the platform and some find the terms unfavorable. ONDC is aiming to change the e-commerce platform to accommodate more retailers and sellers with an opportunity-based system.

Digital payments grew abundantly after the launch of UPI connecting all major participants; ONDC is expecting the gain the same momentum of connecting participants and thus increasing the e-commerce industry in India to a competitive percentage.

 

How to become a participant in the network of ONDC?

If you are from one of the 5 cities selected for the ONDC pilot phase, then check with your local traders or vendors for seller application of ONDC, attend a workshop, and understand how to connect with ONDC.

 

ONDC for Uengage

Platforms like Uengage works to create digital space for platforms like restaurants, cafes, and sectors like online deliveries have welcomed the launch of ONDC and its UPI-like functioning. Founders of Uengage are excited to see how ONDC will play a role in turning digital commerce for buyers and sellers from areas like mobility, hospitality, travel, retail, and restaurants.

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