ONDC
About
- Open Network for Digital Commerce (ONDC) is an initiative of the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce to create an open, inclusive and competitive marketplace.
- Launched in 2021 as a non-profit company, ONDC aims to create a network of interconnected e-marketplaces through which sellers can list and sell their products directly to customers.
- ONDC sets protocols for cataloguing, vendor match, and price discovery on an open source-basis, like the Unified Payments Interface (UPI).
- What this means is that buyers and sellers can transact on ONDC irrespective of whether they are attached to any specific e-commerce portal.
- For instance, even if a seller X is registered on platform A, while the consumer is registered on platform B, the consumer can directly purchase products of seller X without registering on platform A from the ONDC network.
Significance
- ONDC represents a step toward digital commerce democratization, shifting it from a platform-centric model—where a few e-commerce giants dominate the market—to an open, interoperable platform where buyers and sellers can interact regardless of the platforms they’re using.
- ONDC aims to create new opportunities, curb digital monopolies and by supporting micro, small and medium enterprises and small traders and help them get on online platforms by lowering entry barriers.
- Additionally, as sellers of different sizes and from diverse geographies become accessible on the network, consumers benefit from a wider selection of products and services, enabling more informed and competitive choices.