How do you look for hotels from different websites, do you look at all the e-commerce platforms for hotel booking or are you thinking about trivago, like everyone else?
wouldn’t it be wild to have a decentralized network like trivago, but for more than just price comparison?
Well then let us introduce you to ONDC AKA Open Network for digital commerce. A buyer application network will help decentralize the E-commerce platform’s monopoly in Indian and global markets.
That sounds like a lot of Mombo jumbo. Let us simplify. let’s take an Electronic store named “Kumar Electronics” and Mister Kumar is registered on different digital commerce websites like Amazon or Flipkart.
Now these E-commerce networks have logistics partners, which can understand the customer buying behaviors, so once these platforms can see what kinds of electronics are in demand around Kumar Electronics, what is the average spending range in the area, and what features are in demand. These companies can make identical products and sell them at a cheaper price with tags like “best seller” or “trusted merchant” with fewer delivery costs and harm Mr. Kumars’s sales.
With ONDC networks this process will come under a decentralized network which will help ensure an equal playing field for micro and small business owners which are now facing tough competition from big companies like Amazon.
By registering his business with ONDC networks, Mr. Kumar can see a sales rise so much that he might need accounting and inventory software like ProfitBooks.
Now that we have a fair idea of what ONDC networks AKA Open Networks for digital commerce, it lets us know its history, pros, and cons.
ONDC home page
What is the ONDC network?
Let’s put on our nerd glasses for a min and look at some data. There are around 120 lacks (12 million) sellers, resellers, and service providers in India but only 15,000 are registered on popular seller apps.
Which is just 0.125% of the total market, it’s like going to a popular market like Sarogani and only browsing three dresses from one shop and thinking THATS THE ENTIRE MARKET! and missing out on at least a lakh products the market has to offer.
To fill this gap between the market and consumers, the government of India has launched the ONDC network.
ONDC network is still in its early stages in some selected cities but soon it will launch pan India.
It will be very interesting to see what different advanced stages have to offer regarding exposure and job opportunities
Benefits For seller
1. Level playing field.-
Because of the monopoly of Amazon, Flipkart, Zomato, etc in the E-commerce industry, a lot of micro-small businesses suffer as they lack the big logistics teams and up-to-date algorithms for customer buying behavior, they suffer a lot.
With a decentralized e-commerce network, all the players will get an equal opportunity to market and sell their goods and services.
This will help small businesses achieve visibility.
2. One platform for all.
With the ONDC network, you do not need to be present on all seller platforms, the ONDC network will help you grow regardless as it has contact with different delivery platforms.
For example, if you are a small restaurant not registered or don’t have delivery partners around your restaurant, with a unified network you can still deliver to your customers through Dunzo, zepto, or Instamart.
3. A Global necessity.
Well, India is not the only country that is suffering from malpractices by Amazon and other E-commerce industry giants.
ONDC network is a huge opportunity for even global micro and small businesses to create some space in the market for themselves.
The network is showing potential to be a revolution for e-commerce industry needs in today’s digital age.
E-commerce companies on the ONDC network
How to be part of the ONDC network.
After reading all the benefits of The network, if you are excited to be a seller on the network, this section on the blog is for you.
- Choose a seller app. There are several seller apps that you can use to register on ONDC. Some of the most popular apps include Mystore, Seller App, Bizcom, Digiit, e-Samudaay, and Growth Falcons.
- Create an account. Once you have chosen a seller app, you will need to create an account. This will involve providing some basic information about your business, such as your name, address, and GSTIN number
. - Complete your KYC. To sell on ONDC, you will need to complete your KYC. This will involve providing some additional information about yourself, such as your ID and address proof.
- List your products. Once your account has been approved, you can start listing your products. You will need to provide some basic information about each product, such as its name, price, and description.
- Start selling! Once your products have been listed, you can start selling them on ONDC. Buyers will be able to find your products by searching for them on the ONDC platform.
Link for participating in the network
The network is still in its early stages hence right now is a good time to register as a seller on this digital commerce network, and as you get more visibility you can always use ProfitBooks to manage your inventory.
List of e-commerce companies already on the network
ONDC network is going to introduce a lot of intersectionality between a lot of buyers and seller platforms. From banks to companies the goal is to bring all the e-commerce networks under one India’s open E-commerce network.
Yes, this means you will be able to buy dairy products from the same app you pay your electricity bill on.
Banks and Payment Networks.
- State Bank of India (SBI)
- HDFC Bank
- ICICI Bank
- Axis Bank
- Kotak Mahindra Bank
- Punjab National Bank (PNB)
- Bank of Baroda
- Union Bank of India
- Canara Bank
- Bank of India
- Paytm
- Phone pay
E-commerce companies
- Growth Falcon
- My stores
- Amazon
- Flipkart
- Reliance Retail
- JioMart
- Udaan
- IndiaMART
- Snapdeal
- ShopClues
- Paytm Mall
The problem with the ONDC network.
1. Its early stage
“Roam was not built in a day” and they had less population than us (we googled). Hence spreading this network far and wide is going to big a big task.
The network does has the potential, no wonder it’s called the UPI of E-commerce, but it will be some years before you will be able to order dairy products from your bank app. It will be fun tho.
2. Deconstructing the monopoly
The goal of the network is to create a level playing field for all E-commerce industries, but there is one thing big companies have DATA.
After years of investment in understanding consumer behaviors and buying patterns, big companies have an undo advantage in the market, it will be interesting to see how the ONDC network deal with this advantage in the advanced stages.
Final Thoughts
An e-commerce revolution like UPI is upon us, and now is the right time to start associating with this revolution, in coming years we will see a big change in the e-commerce landscape.
ONDC will be creating a safe network for small and micro businesses to grow alongside big industry giants. Which will not only empower the country but will also create a global change
FAQs
What is the significance of ONDC?
ONDC stands for Open Network for Digital Commerce. It is a government-backed initiative to create an open and transparent platform for e-commerce in India. ONDC will allow buyers and sellers to connect directly with each other, without having to go through a third-party platform. This will help to reduce costs and improve efficiency for both buyers and sellers. ONDC is expected to launch in India in 2023.
What are the key features of ONDC?
ONDC will be a non-discriminatory platform, which means that sellers will be able to offer their products at lower prices without having to worry about being penalized by the platform. This will lead to more competitive prices for consumers.
Who can use ONDC?
ONDC will be open to all buyers and sellers, regardless of their size or location. This means that small businesses and startups will be able to compete on an equal footing with large companies. ONDC will also be open to international buyers and sellers, which will help to make the Indian e-commerce market more global.
What are the benefits of using ONDC?
ONDC offers lower prices, more choices, and better customer service.
When will ONDC launch?
ONDC is still in its early stages of development, but it is expected to launch in India in 2023. The exact launch date has not yet been announced
Also, read
Credit Guarantee Scheme, Ultimate Loan Scheme in 2023.
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10 Most Effective Strategies For Selling On Amazon
Best Ways To Optimize Your E-commerce Website And Beat Your Compition
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