Steps to Register on ONDC: Getting onto e-commerce platforms to sell goods online from earlier offline or physical stores has become a natural progression for retailers or traders looking to multiply their growth from a single city or town to across the country. Currently, Amazon and Flipkart are the top marketplaces for MSMEs and other businesses retailing different goods to get online while China-founded and Singapore-headquartered marketplace Shein is also reportedly looking to re-enter the Indian market in partnership with Reliance which already runs its e-commerce arm JioMart.
However, to transact on any of these marketplaces, it is important for both buyer and seller to be available on them. Hence, it is a closed network. To open up this network and consequently curb the duopoly of Amazon and Flipkart in India’s e-commerce sector, the government had introduced Open Network for Digital Commerce (ONDC) last year for buyers and sellers to interact with each other irrespective of the app they are available on.
Also read: 36,000 sellers on ONDC a testimony to its impact: Piyush Goyal
This is similar to UPI which is interoperable and payments can be carried out irrespective of the apps the buyer and merchant are using. Likewise, ONDC is a network and not a platform. Here are some key FAQs for sellers to register themselves on ONDC and grow digitally.
ONDC Registration: How to Register on Govt’s ONDC Platform
To get onto ONDC as a seller, you can join through any of the existing category-specific seller apps or seller network participants such as BoAt to sell electronics products, Mystore and Digiit to sell grocery, food and beverage etc., Snapdeal for fashion, Bizom for home decor etc.
Alternatively, you can also create your own seller application and join ONDC. In case, you don’t want to build the application from scratch, you can engage with a technology service provider (TSP) on the network.
- To register via a seller app, for instance, Mystore, visit their website seller.mystore.in and sign up.
- Complete your profile for seller KYC with additional details such as product details, business logo, website, address, contact details, bank account details, cancelled cheque, GSTIN, address and ID proof, time you will take to deliver order, whether the order can be cancelled or returned, use of network logistics, your category of goods, your store timings etc. and save it.
- KYC review and account approval may take 2-3 business days. Once it is approved, the seller app will make you visible on buyer apps.
- Once the buyer searches for, let’s say, a grocery item from a buyer app, the latter will show sellers (connected with different seller apps) from where the item can be purchased.
How much commission will be charged by ONDC?
According to ONDC, it does not charge or recommend any commissions. However, the commission’s discussion and agreement is between the seller and the seller app he/she is on. The seller app is expected to charge “viable commissions” as sellers have a choice of joining ONDC through any of the active seller apps.
Can I change the seller app from which I joined ONDC?
Yes, however, you will have to exit the agreement with your current seller app and enter into a fresh agreement with the new app. Moreover, you will also have to deactivate your product catalogue from your existing seller NP and activate it on the new app.
Also read: ONDC growth: 40x jump in merchants this year so far; orders peak to 25,000 per day
Can I register on multiple seller apps for better visibility?
While you can but that won’t give you any added benefit. Registering on any one seller app is good enough to be visible across all buyer apps on the network.
Do I need GST registration to sell via ONDC?
All sellers of goods and services except those exempted under section 9(5) of the CGST Act must have a GST registration to sell through an e-commerce operator. Under 9(5), for service businesses into restaurant services, housekeeping services, accommodation services, passenger transport services, the e-commerce operator will have to pay tax.
How will I deliver the order to customers?
You have two choices to deliver the order; first, ship the order on your own through your employee or agent or via a third-party logistics provider; second, you can also avail logistics service via ONDC from the logistics provider apps.
