India’s new e-commerce network

  • ONDC stands for Open Network For Digital Commerce (ONDC)
  • ONDC is a non-profit company
  • It displays products and services from all participating e-commerce platforms in search results across all apps on the network.

India’s government April have launched its Open Network For Digital Commerce (ONDC )as a new alternative to bog global companies like amazon.com and Walmart in its fast-growing e-commerce market.

ONDC is a non-profit company whose network will give the display products and services from all participating e-commerce platforms in search results across all apps on the networking sites.

Given below are the detailing and all you need to know about ONDC also with the upcoming challenges and problems it has to face land the benefits of it-

ONDC’S Transaction targets

  1. In a country of 1.35 billion people.Target raise of consumer purchase- 8% to 25%
  2. Within the next five years
  • Buyers- 900 million
  • Sellers- 1.2 million
  • Total merchandise value- $ 48 billion
  • The government estimates that India’s e-commerce market was worth more than $55 billion in total merchandise value in 2021 and will grow to $350 billion by the end of this decade. Currently, Amazon and Walmart’s Flipkart control more than 60% of the market.

ONDC wants to boost competition

The government says existing platforms work temporarily based and are tightly controlled, keeping out many small businesses. It expects ONDC to increase competition and star new innovations by start-ups.

It also wants to bring in logistics firms and others who can collaborate with sellers to deliver products to customers. The focus would be on small merchants and rural consumers, with apps in Indian languages.

ONDC officials have opened  1,000 gates of networking instead of just a few, and this has limited the opportunities for selected sellers to receive special treatment which would increase competition. Users will be able to rate service providers on ONDC, which will be applicable and visible across the network.

The government says ONDC will help to end

predatory pricing, especially in high-margin, high-value products”.

Amazon and Flipkart completely refuse that they have engaged in high pricing.

Challenges for ONDC

ONDC aims mainly to reach millions of small businesses that often lack technological expertise, so the government will have to run a huge awareness campaign to get them in understanding this, said the Confederation of All India Traders, a group that represents 80 million such businesses.

Smaller businesses with low sales may also lack the resources to match the discounts offered by heavyweights like Amazon and Flipkart.

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