To put it in simple terms, ONDC or Open Network for Digital Commerce is a government initiative to democratize the Indian eCommerce market. One of the primary agendas of ONDC is to end ‘monopolistic practices’ of the monolithic eCommerce giants in India.
To put it into perspective, let us take the example of Google Pay. Somebody who uses Google Pay is able to send money to somebody using PhonePe as well as Google Pay. It is made possible because both the applications use the common UPI or Unified Payments Interface option. Similarly, with ONDC, the government aims to enter the eCommerce market to give smaller merchants a level playing field.
How? By bringing a shift in the Indian eCommerce market from a platform-centric model to an open network.
In this blog, we will delve into the various benefits that ONDC offers to sellers and how it can positively impact their businesses.
Benefits of ONDC for Sellers
The eCommerce boom in India transformed the way customers shop and how businesses operate. Now, with ONDC, the government aims to revolutionize the eCommerce business landscape.
Increased Market Reach
With ONDC, sellers can expand their reach by connecting seamlessly with multiple platforms. With low platform fees as compared to existing eCommerce giants, sellers can gain broader exposure to enhance visibility of their offerings and reach a wider pool of customers thus increasing prospective sales.
Transparent and Fair Pricing
At the core of ONDC is transparency and fair pricing and its practices eliminate the undue influence of the larger ‘monolithic’ platforms charging exorbitant platform fees. With ONDC, sellers have a better control over the pricing of their products, thus, ensuring a level playing field. Additionally, the transparent nature of ONDC enables sellers to make informed decisions when formulating a competitive pricing strategy to increase trust in customers.
Cost Efficiency
In the current eCommerce market scenario, sellers have to pay substantial platform fees to the eCommerce platforms, thus impacting their profits. ONDC is a cost-effective alternative to traditional eCommerce platforms by reducing overhead expenses, reducing platform fees and enabling businesses to offer competitive pricing to maintain their profitability.
Neutral Platform
Although a government initiative, ONDC operates as a regulated and neutral eCommerce platform. It is independent of any entity, making it a transparent and fair platform offering equal opportunities to all sellers. Overall, the ONDC platform fosters a healthy digital commerce ecosystem.
Access to Government Data
With ONDC, sellers can gain access to government data enabling them to identify emerging trends if any and update their offerings to stay on top of evolving customer needs. ONDC has significant potential to be a catalyst for innovation and enable the development of unique and innovative products.
Wrapping Up
The ONDC or Open Network for Digital Commerce holds a transformative opportunity for the Indian digital commerce landscape. With its primary focus on expanding options for customers it can break down the barrier to entry and encourage more SMEs to participate in this initiative. Overall, it stands a chance to diversify the marketplace and provide consumers a wide range of options while creating a competitive marketplace.
By creating a level playing field for sellers, ONDC empowers them to grow their business and optimize operations. With ONDC gaining momentum, sellers stand a greater chance to benefit from a fair marketplace and increased profitability. Embracing ONDC can unlock new avenues for success and propel sellers towards sustainable growth in the digital commerce ecosystem.
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