Hardeep Singh
The government has indicated that advanced eCommerce would be reconsidered in 2021, and the pause will be officially ended on April 29, 2022. The ONDC (Open Network for Digital Commerce) initiative has been directed across five urban areas: New Delhi, Bhopal, Bengaluru, Coimbatore, and Shillong.
The ONDC is a market-driven initiative with the goal of democratizing eCommerce and providing incentives for all components of the advanced eCommerce ecosystem.
Nandan Nilekani, a non-executive chairperson of Infosys, joined the ONDC monitoring board in July 2021. Thampy Koshy leads the current ONDC group, which includes famous computerized evangelists Shireesh Joshi, Vibhor Jain, Supriyo Ghosh, and Sujith Nair. Nair is the CEO of the Beckn Foundation, a non-profit located in Bengaluru that has created the open and decentralized convention that governs the ONDC ecosystem.
The ONDC is being compared to the BHIM UPI (Unified Payments Interface), which was launched some time ago and has resulted in an increase in the number of digital transactions reconcile. According to Mr. Koshy, the CEO of the ONDC initiative, the objective is to expand computerized trading by admitting new members. The decision may also boost India’s e-retail penetration, which is now between 4.3 percent and 6 percent, far behind China, Korea, and the United Kingdom, all of which have a 20 percent or higher entry.
What is ONDC?
The ONDC is not a stage or application, but rather an organization. It is created with the intention of:
- Unbundle the eCommerce administration chain and reduce the Go-to-Market by safeguarding both dealers and customers. It enables participants to supplement their present capacities and finish the arrangement.
- Work on interoperability to secure more prominent market access. It will use a uniform eCommerce conveyance across multiple aspects connected by the open organization.
The primary distinction between an organization strategy such as the ONDC and a stage such as Amazon or Flipkart is that the purchaser and vendor can collaborate regardless of how they choose to be clearly digital.
Until now, the eCommerce business had been dominated by Amazon and Flipkart, requiring both the customer and the dealer to execute on these stages. Enlistment in these phases is voluntary rather than mandatory, according to the ONDC. Offline shops can compete with their online partners by offering their forms of support and commodities to clients discovered nearby, hence boosting hyperlocal conveyance.
In the aforementioned metropolitan neighborhoods, 150 vendors are expected to be onboarded. While merchants employ ERP frameworks and computerized platforms individually, for example, GoFrugal and Digiit, the purchaser’s side will be through the Paytm door, which fills in as follows:
- Assume a customer is looking for something specific, such as a shirt.
- The chase is started on a multi-domain registry, which pushes queries to merchant apps.
- The merchants respond with their terms (for example, free, paid, or no conveyance obtained just), and these are returned to the customer to pursue a decision. The buyer can discover if the item they’re looking for is available in commercial centers or in neighboring kiranas in their location. Small-scale retailers can volunteer to sign up for this network to gain digital visibility.
How does ONDC Work?
The ONDC project is more easy to use than the others.
- Vendor onboarding
- Seller disclosure
- Cost transparency
- Product cataloging
Which can demolish the monopoly business model that bigger eCommerce administrators have enjoyed by capturing 80 percent of the market through the assurance of free conveyances, celebration or event-driven discounts, and the development of preferred merchants.
Statista’s prediction that India’s eCommerce industry will be worth $200 billion by 2027 backs up the official authorities. This allows a diverse variety of merchants to participate and pull in, removing the uniqueness in a sector of the total business. Given that 20+ private and public foundations have invested about INR 2.55 billion in the project, it’s safe to reiterate Anand Mahindra’s tweet—that we’re on the verge of a global retail revolution!
