All you need to know about ONDC

The Red Lab by Rediffusion releases report explaining government’s Open Network for Digital Commerce

e4m by exchange4media Staff
Published: Jul 4, 2022 7:16 PM  | 3 min read
ondc report

The Government of India is all set to launch the pilot phase of the Open Network for Digital Commerce (ONDC), a freely accessible online system for traders and consumers, in five cities. The open technology network, which will promote an open platform for buying and selling of goods and services, seeks to curb the dominance of e-commerce giants like Amazon and Walmart-owned Flipkart in the online retail space.

The initiative will first launch in Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore.

So, is the government move a fight against foreign e-commerce exploitation or an attempt to protect and fortify local businesses?

The question has been answered by the Red Lab team at Rediffusion in a report released by them.

“ONDC is a step beyond the current platform-centric e-commerce system where both the buyer and seller have to use the same platform or application to conduct a business transaction. Businesses and consumers will be able to carry out transactions over ONDC using any compatible application of their choice. Even marketplaces such as Amazon, Flipkart, BigBasket, Grofers and Zomato will have to register on the platform that will be created by DPIIT and QCI. This will give consumers the choice to pick any seller, product or service by using any compatible application or platform,” states the report.

“Small traders have for long been crying foul at the unfair trade practices of e-tailers like Amazon and Flipkart. The biggest challenge for the government- backed network would be establishing the technology. Giants like Amazon and Flipkart have been able to lure merchants and buyers to their platforms due to their tested technology. The commerce ministry needs to build something comparable, if not better, to outdo rivals.

Will ONDC scare Amazon or Flipkart? Maybe it is too early to say. But the tremendous success of UPI indicates rosy times ahead – an empowered 

Digital India will take India to the forefront of global competition,” it says.

“ONDC is expected to digitise the entire value chain, standardise operations, promote inclusion of suppliers, derive efficiency in logistics, and enhance value for consumers.

The best part about ONDC is that it will open doors for everyone including the smallest of the sellers located in the remotest parts of the country to ride the e-commerce wave. There won’t be a barrier anymore. Anyone can be a point on the crest of this wave of progress, supporting and pushing the economy even further.”

“As UPI is to the digital payment domain, ONDC is going to be to e-commerce in India. ONDC will enable, buyers and sellers to be digitally visible and transact through an open network no matter what platform/application they use. ONDC will empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, food to mobility.

ONDC has been initiated by the Government of India to provide an unparalleled monetary framework, audience scale, and autonomy in the e-commerce sector. Buyers can shop groceries and food from a sea of sellers on everyday apps like Paytm, Whatsapp, and more.”

“ONDC shall take all measures to ensure confidentiality & privacy of data in the network. ONDC shall not mandate sharing of any transaction-level data by participants with ONDC. ONDC will work with its participants to publish anonymised aggregate metrics on network performance without compromising on confidentiality and privacy. ONDC will be compliant with the Information Technology Act, 2000 and designed for compliance with the emerging Personal Data Protection Bill," the report mentions.

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