What is govt’s ONDC project: Explained in 10 easy steps

Sep 01, 2023 Girish Khurana

India has over 12 million sellers selling or reselling products and services. However, only 15,000 of these sellers (0.125 per cent of the total) are on e-commerce

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ONDC aims to increase online retail penetration from the existing 4.3 per cent through the inclusion of all types and sizes of sellers

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Currently, Amazon and Flipkart are the top marketplaces for MSMEs and other businesses retailing different goods to get online

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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

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To open up this network, the government incorporated ONDC in December 2021 for buyers and sellers to interact with each other irrespective of the app they are available on

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This is similar to UPI which is interoperable and payments can be carried out irrespective of the apps the buyer and merchant are using

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It provides a unified platform that connects various stakeholders in the digital commerce value chain, including manufacturers, suppliers, logistics providers, and consumers

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The platform offers features like secure payments, logistics support, and customer analytics, enabling businesses to deliver a seamless and personalized shopping experience

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Currently, multiple companies are live on the network, for instance, Digiit, GoFrugal, Ushop, Growth Falcons etc., as sellers while Paytm, PhonePe, Craftsvilla etc., are registered as buyers

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When a shopper searches for a product on any of the buyers’ apps such as Paytm, ONDC connects him to listed sellers that show up merchants from where the shopper can purchase the product

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