The Open Network for Digital Communication (ONDC) is a structure of open networks to oversee all forms of digital trading in India. It will have open-source specifications and protocols independent of any specific eCommerce platform.
This platform will rival the duopoly of companies such as Amazon and Flipkart in the Indian e-commerce space.
On the ONDC network, several participants are now active and providing a range of services for the e-commerce supply chain, including buying, selling, and providing logistics.
Microsoft is an excellent example, providing international brand associations ahead of the network launch.
Media reports claim that eCommerce giants such as Flipkart and Amazon are considering joining the network.
ONDC Explained
ONDC is a platform that separates the hosting interface between online traders. The seller-side interface is hosted by players such as Bazzlo and others, while the buyer-side interface is solely Paytm.
Furthermore, the Paytm app will link to the platform when a buyer seeks a particular item. It will then connect it to the interface for sellers to show all the businesses that have it in stock.
Several partners will join the platform, including enterprise resource planners, providers of logistics, online store hosting, etc.
What Does It Mean for eCommerce in India?
Theoretically, Open Network for Digital Commerce in India will make smaller sellers more visible online to enhance customer options.
One of the main critiques of the world’s largest e-commerce companies has been that they have gathered vital information about customers’ purchasing habits. This insight gives them a sense of what products are popular at any given time.
Companies such as Amazon have come under fire in India and other countries for allegedly using this information to introduce comparable products through a company it indirectly owns.
These suggestions are often at a price that rival retailers can’t match.