What is the Open Network for Digital Commerce (ONDC)? (Buyer POV) 

Toggling between Swiggy and Zomato to order food? Comparing prices on Amazon and Flipkart for purchasing electronics? Checking if Blinkit has a better deal on groceries than Zepto? What if there was a platform where you could do all this in one place? Imagine a platform where you can have a greater say in what, where and how you buy things. Welcome to the Open Network of Digital Commerce (ONDC). 

ONDC is an initiative by the Department for Promotion of Industry and Internal Trade (DPIIT) at the Ministry of Commerce. It aims to re-imagine the way e-commerce is done in India. By bringing together a wide array of buyers and sellers onto a single open network, it aims to transcend the silos created by individual e-commerce giants. Simply put, ONDC allows different buyers and sellers to interact with each other regardless of the platforms they are using. 

This interoperability is possible through the use of the Beckn protocol, which enables seamless communication and data exchange between various participants. Essentially, ONDC aims to create a unified marketplace, like a digital mall, for all available goods and services. This would give consumers better choices by fostering competition among sellers. 

Why should you, as a consumer, care about ONDC? 

  1. Convenience: Instead of having to navigate different apps to find the best deals or products, one can access everything from a single platform. This not only saves time but also reduces the complexity of managing multiple accounts and applications, from ordering food, to looking for a specific brand of electronics or comparing grocery prices, ONDC streamlines the process, making it more efficient and user-friendly.
  2. Better Prices: By virtue of being an open platform, ONDC promotes competition between different sellers and service providers. When multiple vendors compete on the same network, it drives prices down and enhances service quality. Users benefit from competitive pricing and better deals as sellers strive to attract your business.
  3. Support Local Businesses: ONDC lowers the barrier to entry and creates a level-playing field for Small and Medium Enterprises (SMEs) that have the capacity to be online. By shopping from local businesses such as the neighbourhood kirana stores that are made discoverable through ONDC, you contribute to the growth of local economies.
  4. Diverse Range of Products: ONDC onboards local businesses that may not have the resources to be featured on the dominant e-commerce marketplaces. It opens doors for a more diverse range of products,  giving a buyer access to products that may not be available on mainstream platforms. 

While the potential benefits of ONDC are vast, there are some critical concerns that require attention, such as the ambiguity over data privacy considerations, grievance redressal, and regulatory frameworks to ensure fair competition and consumer protection. Another fear remains of ONDC becoming a super platform of aggregated market players. It is imperative for these issues to be addressed for ONDC to fulfil its promise of serving as the bedrock of e-commerce and powering the engine of the digital economy in India.

Resources: 

Building Trust in the ONDC Network – Consultation Paper. (2022, September 29). Amazon AWS. https://ondc-static-website-media.s3.ap-south-1.amazonaws.com/res/daea2fs3n/image/upload/ondc-website/files/ONDC_Building_Trust_Consultation_Vf_utbodw/1664541553.pdf?ref=static.internetfreedom.in 

Democratising Digital Commerce in India – McKinsey. (2023, May). Amazon AWS. https://ondc-static-website-media.s3.ap-south-1.amazonaws.com/res/daea2fs3n/image/upload/ondc-website/files/democratising-digital-commerce-in-india-april-2023.pdf 

M, S. (2024, January 13). Why do we need ONDC and other open protocols? Beckn co-founder Pramod Varma answers. MediaNama. https://www.medianama.com/2022/01/223-open-digital-protocols-beckn-pramod-varma/ 

Mathi, S. (2022, March 16). Explained: What is the ONDC and how will it work? MediaNama.  https://www.medianama.com/2022/03/223-ondc-strategy-paper-summary-2/ 

ONDC – The Way Ahead. (2022, January). Wikipedia. Retrieved June 10, 2024, from https://www.medianama.com/wp-content/uploads/2022/03/ONDCStrategyPaper.pdf?ref=static.internetfreedom.in 

Panjiar, T., & Waghre, P. (2023, March 10). Open Network for Digital Commerce (ONDC): An Explainer. Internet Freedom Foundation.  https://internetfreedom.in/ondc-an-explainer/

Banner image source: GPT – 4.