The Open Network for Digitial Commerce (ONDC) has decided to revamp its incentive structure and has decied to put in place some caps on the price discounts as also a floor for the order value. The earlier scheme had driven up the daily transaction volumes to 13,000 persons, familiar with the development confirmed to FE.
The scheme comprises incentives for onboarding of new sellers onto the network and also for boosting transactions by incentivisng buyers.The maximum pricing incentive is capped at Rs 100 per order and the pricing intervention should not exceed 50% of the order value, including shipping charges.To be eligible, orders should have a minimum order value of Rs 200 for food & beverages; the threshold is higher at Rs 300 for all other categories, including shipping charges (prior to any pricing intervention).
A buyer is eligible for incentives for maximum 5 transactions per month while a buyer app can incentivise a maximum of 20 transactions per seller/brand per day. Previously the terms were easier and buyers could take advantage of discounts on three orders per day although the total number of orders was capped at 30.Buyer network participant can structure the schemes to boost transactions based on specific time of the day, days of the week and other buyer behaviour patterns. The network is now averaging about 9,000 orders a day and the revamped incentive programme will come into effect on June 1. ONDC first conceived the incentive programme when the network was clocking less than100 orders a day.