ONDC Report
ONDC Report
ONDC Report
Network
for
Digital
Commerce
(ONDC)
06
Inclusion and
Empowerment
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.
08
Confidentiality &
Privacy
ONDC shall take all measures to ensure
confidentiality & privacy of data in the network.
09
Regulatory Framework &
Equal
Opportunity
E-commerce has today gained substantial depth
in the Indian market; Amazon and Flipkart parcels
are a common sight at the post offices of Tier 2
and Tier 3 cities!
10
There are three important considerations for ONDC:
Dynamic pricing
Inventory management
11
Advantages
to the Rural
and Peri-Urban
Consumers
12
Pradhan Mantri Van
Dhan Yojana & ONDC
– A Case Study
PMVDY is a scheme for enhancing the livelihood
of forest-dependent tribes through aggregation,
processing and forward sales of forest produce.
The scheme has been operating since 2018 but a
bulk of sales still take place at local haat bazaars
or village mandis and is restricted to local traders.
The tribal communities neither enjoy the benefits
of price realisation nor do they get sufficiently
exposed to the market. By plugging in Van Dhan
Vikas Kendras (VDVKs) set up under this scheme,
ONDC can, however, provide them the reach on
scale enjoyed by any other big brand.
13
expectations; a format for processing, standard-setting,
packaging and labelling evolves organically.
14
ONDC - Present &
Future
The pilot phase of the ambitious Open Network
for Digital Commerce (ONDC) kicked off on April
29. Under the trial run, the platform went in five
cities – Delhi NCR, Bengaluru, Bhopal, Shillong
and Coimbatore.
15
Outlining ONDC’s future plans, Agrawal said,
“Going forward, the target of the ONDC is to
onboard 3 crore sellers and 1 crore retail
merchants online. In the next step, we want to
go to 100 cities in six months.”
16
ONDC - benefits
to India
ONDC will bring together industry leaders & policymakers to
raise awareness of the benefits of doing business online in India
and how e-commerce can make a difference for the nation.
Big businesses and small start-ups will both benefit from this
important decision, which will spur progress and job growth in
the private sector.
17
THE The explosion of e-commerce has been brutal for
RED LAB Indian mom-and-pop retailers in the last decade
ANALYSIS with the proliferation of Amazon and
Walmart-owned Flipkart. As internet penetration
grew, Indians started using their smartphones for
other services including ordering groceries. While
this slowly chipped away at the businesses of local
stores, it was the launch of the new category of
instant grocery delivery — within 10 to 20 minutes
— that further aggravated the situation.
18
Impact on
small
Retailers
Digital commerce is revolutionizing
India’s retail industry. The use of mobile
wallets and digital transactions
(particularly for low-cost items and
grocery delivery) is having an outsized
effect on small retailers in India. Research
shows that an open network for digital
commerce has the potential to bring
$35.03 billion to small retailers in India.
19
Leveraging ONDC
for e-commerce
Any ecommerce firm can avail the benefits of
Open Network for Digital Commerce. However,
one should note that ONDC is a payment system,
not a payment gateway. Thus, all e-commerce
players need to develop their own app for
accepting payments via ONDC. A few apps are
already available in the market like UPI for all
banks (Axis Bank), BHIM UPI app from NPCI and
Quickpay by ICICI bank to name a few. In future it
can use QR code, phone number or tokenized UPI
to make payment flow simpler.
20
Meeting the
Tech Gap
22
For the last 20 years, the rise of the internet in the
West has been fuelled by digital advertising. That
is how big players like Google and Facebook
make money.
23
Amazon
on ONDC
24
”At this stage, we are engaging very closely with
the ONDC group, and we are quite committed to
what the government is wanting to do, which is to
digitise kiranas, local stores... I spoke about some
of our initiatives, which are preceding even
ONDC... So yes, excited by what it can do. It's a
nascent industry, we will work closely with the
government," he said. Amazon comes with a deep
understanding of technology, and sellers which it
will leverage, the official added.
25
In Conclusion
But the ONDC protocol can help tip the scale in the
favor of offline sellers, who will now have a platform
to compete with deep-pocketed startups. ONDC
will help a seller succeed on the basis of what they
can offer and the specialization they have, rather
than the scale that venture capital money helps
many achieve.
27
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