What is ONDC & it's facts & myths

ONDC an open network platform designed to level the digital commerce market in India. A UPI-like open network that enables online businesses and sectors like food delivery, hospitality, grocery, etc to engage with their consumers on a single platform.

The Indian government is currently testing ONDC or Open Network for Digital Commerce platform within selected cities with selected vendors. While the launch news of ONDC in the digital marketplace is spreading like a wildfire, the ritual of rumors and myths getting hitched to the news wagon is continuous.

Many players in e-commerce from buyers, and sellers to logistic vendors, are lost about ONDC with the same old "Is it a bird? Is it a plane?" confusion. ONDC is also known as Open Network for Digital Commerce is an Indian government initiative to enable an open network, open system, and open market. Trade ministry has cleared that ONDC is nothing but an open field bringing together buyers, sellers, and logistic partners while descaling the monopolies of dominant brands like Walmart, Amazon, and Flipkart, etc.

The fact that ONDC will augment the competition, e-commerce giants like PAYTM, Flipkart, and even Amazon are welcoming the launch. Spearheaded by the Indian government, ONDC has become popular as the UPI of the digital marketplace.

Facts about ONDC

ONDDC is an open network like UPI
It does not need any central intermediary
Connect buyers and sellers from different application
Enables expansion of e-commerce market
Works for participating apps and retailers
Let’s consumer find all participating sellers on one platform
Ends monopoly of e-commerce silos
Introduces opportunities for small segments
ONDC connects wholesale, mobility, travel, food delivery and tourism or hospitality
Makes shopping for a product open with price comparison

Myths about ONDC

It is a digital application
ONDC is a regulatory body
An ecommerce platform for comparing brands or apps
It promotes or markets digital business
Only particular retailer benefit
Supports big-scale sellers

Ecommerce without ONDC	Ecommerce with ONDC
Buyer visits Amazon to search for headphones	Buyer types headphones to find the product from all participating sellers, including Amazon, Flipkart, etc
Buyer visits Flipkart to check the price of same headphones	Buyers can compare prices at same platform without changing application
Buyer goes back to Amazon or google searches for more options for better pricing	Buyer simply adds the best priced headphones in the cart for checkout

Launch of ONDC

The seed of ONDC was laid in June 2021 when the advisory council set up by DPIIT came onboard, further rolling out plans and ideas to further activate a pilot stage engagement and integration as well as testing of ONDC transactions. With ONDC operational in April 2022 and rolling out to additional cities, ONDC leadership team and commerce ministry aim at a grand and successful launch of ONDC by august 2022.

Top player supporting ONDC

Open Network for Digital Commerce has already found support from major institutions from retail, and banking to other sectors. Brands like Paytm, Dunzo, PhonePe, FarEye, Microsoft and many more are ready to be players in ONDC integration. ONDC also is seeing participation eagerness from over 60plus key e-commerce market giants like Reliance, BHIM, Shopperstop, Samsung, ZOHO and many others.