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ONDC – Open Network for Digital Commerce

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ONDC: The Open Network for Digital Commerce (ONDC) is a government-backed program designed to provide small businesses and local retailers in the area with access to the same tools and systems that major e-commerce platforms often use. The project’s goal is to promote open networks for any kind of cross-digital or electronic network exchange of products and services. ONDC, which will operate independently of any specific platform, utilizes open specifications and open network protocols. The platform helps small and medium-sized businesses and dealers get on internet platforms in an effort to create new opportunities and lessen digital monopolies.

This Article provides every important detail about ONDC (Open Network for Digital Commerce) including its definition, features, top 5 ONDC Sellers, and buyers, how to use ONDC, the importance of ONDC, and challenges faced by ONDC.

What is ONDC?

The Open Network for Digital Commerce (ONDC) is a Ministry of Commerce and Industry’s Department for Promotion of Industry and Internal Trade (DPIIT) project. Microsoft is the first notable tech company to sign up for the subsidized Open Network for Digital Commerce. On December 31, 2021, ONDC was granted its certificate of formation as a nonprofit organization with private-sector leadership. On April 29, 2022, the pilot phase began in New Delhi, Bengaluru, Bhopal, Shillong, and Coimbatore. Woolly Farms, situated in Bengaluru, received a purchase order from Paytm in April. On ONDC, this was the very first transaction. The Quality Council of India has been tasked with integrating e-commerce platforms through a network built on open-source technology. Basically, open source refers to a software application or platform with source code that is readily accessible and can be edited or enhanced by anybody. An application’s users can update the original code, improve the design, or fix broken links using open-source access.

Features of ONDC

The features or characteristics of Open Network for Digital Commerce are mentioned below:

  • Modeled after UPI: It is built on the widely lauded Unified Payments Interface (UPI) project. The UPI initiative enables anyone to send or receive money, regardless of the payment systems on which they are enrolled. The ONDC will ensure that sellers and buyers conduct business online regardless of the platforms on which they are registered. Consequently, a customer with an Amazon account can buy something directly from a vendor who operates a Flipkart store.
  • Democratizes Online Trading: It is a first-of-its-kind global effort to democratize digital commerce by moving it from a platform-centric paradigm to an open network. Through an open network, buyers and sellers will be able to conduct business and be found online. whichever software or platform they use. It would empower businesses across all industries, from retail products, food, and mobility, by eradicating silos and establishing a single network to foster innovation and scalability.
  • A workable solution: Over time, ONDC should become a self-sufficient business that generates income for its operations and surplus for continuous investments in technology, procedures, and network expansion. This is a very viable solution given the significant benefits it will offer ecosystem players.
  • Confidentiality: All required measures must be taken to safeguard networked data’s privacy and confidentiality. Participants are not obligated to provide ONDC with any transaction-level data.

Top 5 ONDC Seller Apps in 2023

Here is list of top 5 ONDC seller apps in 2023:

1. Growth Falcons

Specifically, the Growth Falcons seller app works with vendors in the food and beverage sectors. The ONDC seller app was created by Growth Falcons, an AI-driven growth marketing company, to help vendors sign up for the open network.

2. Seller App

Corporate clients of YES Bank are given access to an ONDC seller app by the SellerApp for open network sales in partnership with YES Bank. For its vendors, it specializes in the food, house, and decor areas.

3. Mystore

Mystore is an ONDC-connected marketplace that assists Indian SMEs with their online product sales. With the help of integrated tools and a feature-rich admin dashboard, sellers can effortlessly manage their business activities with the Mystore Seller app.

4. GOFRUGAL Technologies

For retail organizations, GOFRUGAL Technologies offers cutting-edge ONDC network selling solutions. The omnichannel selling feature of its seller app lets customers shop via several platforms.

5. eSamudaay

For grocery, food, and beverage retailers, eSamudaay is an ONDC seller registration platform in India that optimizes order processing and product administration. Businesses are using the app to sign up from different Indian cities.

List of Top 5 ONDC Buyer Apps in 2023

Here is list of top 5 ONDC buyer apps in 2023:

1. Paytm

In September 2022, Paytm became the first app to launch on ONDC in Bangalore. It received the most ONDC orders on the platform and quickly made a name for itself as one of the top five buyer applications in 2023.

2. Meesho

Meesho, a modern e-commerce platform in India, has partnered with the Open Network for Digital Commerce (ONDC) with two main goals in mind: to help India realize its ambition of building a varied e-commerce ecosystem and to make it easier for customers to interact with hyperlocal sellers. 

3. Mystore

Mystore is unique because of the carefully chosen specialty products it offers. High-end consumers who value quality above quantity and are looking for one-of-a-kind products have taken notice.

4. Magicpin

A local discovery platform that has become rather popular is called Magicpin. Users can browse best-selling food brands, carefully chosen collections, exclusive deals, culinary sections, must-try categories, and more.

5. Pincode

Pincode is a hyperlocal e-commerce platform that connects customers with local sellers and was introduced by PhonePe. It is the first infinity shop in India built on the ONDC Network, creating demand from the general public for inclusively distributed digitally empowered sellers on a variety of seller platforms.

How to use ONDC?

As of now, the ONDC does not offer a separate app for ordering groceries and food. Customers can, however, order groceries and food using partner apps like Magicpin and Paytm. The procedure of placing a food and grocery order through ONDC using the Paytm app is described in the following detailed guide:

  • Open your device’s Paytm app. You can download the app from the Google Play Store or the Apple Store if it’s not already installed.
  • Locate “ONDC” by clicking the search icon located at the top of the app screen.
  • There will be a number of alternatives available to you. These include groceries, meals, and household items.
  • A list of the products that can be ordered will appear after choosing the relevant category. Click on the desired product to select it.
  • You have to input your delivery address after selecting the goods you want to order.
  • To finalize your order, you just need to complete the payment at this point.

Importance of ONDC

The following lists the importance or benefits of Open Network for Digital Commerce (ONDC):

  1. Freedom of Choice: It is anticipated that it will increase consumer access to and inclusion in e-commerce. By using any compatible application or platform, they might possibly find any seller, item, or service, expanding their range of options.
  2. Cost Savings for Sellers: Instead of being constrained by particular platform-centric regulations, ONDC would allow small firms to use any ONDC-compatible applications. This will provide small businesses several options for acquiring the tools they need to operate and be found on the network without having to pay aggregator platforms a hefty fee.
  3. Boost E-Commerce: It will assist in increasing both the volume and value of e-commerce transactions. With ONDC, this goal appears to be much more attainable. The ONDC anticipates adding 90 crore customers and 12 lac suppliers to the network during the following five years, enabling 730 crore more sales. 
  4. Encourages Competition: The government claims that because the current platforms operate in silos and are strictly regulated, many smaller businesses are shut out. Over 60% of the market is currently under the hands of Amazon and Walmart’s Flipkart. However, by displaying goods and services from all participating e-commerce platforms, ONDC will ratchet up competition and encourage innovation by start-ups.
  5. Investment Attracting: Companies are anticipated to gain from clear regulations, easy investment, and lower startup costs. Additionally, it is anticipated that both the time to market and the time to scale would be significantly shortened. These will all help to entice additional investment into the e-commerce sector.
  6. Aid in Diplomacy: A new kind of international diplomacy is starting to take place on the internet platforms. Worldwide attention is focused on India’s identification and payment platforms. 

Challenges of ONDC

Challenges of Open Network for Digital Commerce (ONDC) are mentioned below:

  • Unlike UPI, ONDC requires a complex ecosystem to implement.
  • It will be challenging to convince clients to leave the incumbents, who are providing a good service.
  • Initially, network players might not make large market development investments.
  • Expanding the seller base will not always result in a better user experience for network users.
  • The network’s monetization is not entirely evident.
  • Previous attempts to scale up similar models have been unsuccessful.
  • Given the divide between the buyer and seller sides, reaching critical mass will be challenging.
  • There is a lack of accountability, particularly when handling returns and client complaints.
  • It can take a while for the network effect to really take off.
  • Local businesses may eventually be forced out of the network because they will find it incredibly difficult to compete with the discounts, specials, and other tempting offers being made by well-known e-commerce giants.
  • The strategy paper makes no mention of the challenges around network liability in the event that customers experienced problems with transactions, the delivery of subpar goods, or poor services.

FAQs on Open Network for Digital Commerce (ONDC)

1. What is the Open Network for Digital Commerce?

The Open Network for Digital Commerce (ONDC) is an initiative that seeks to advance open networks for any kind of electronic or digital network-based trade in products and services.

2. How do I Connect to ONDC Network?

Indian merchants must first choose a feature-rich, all-inclusive ONDC network seller app, such as Mystore, and register on the platform in order to join the ONDC network. The Mystore seller app provides its vendors with an intuitive open network India website login.

3. Is ONDC is a e-commerce Platform?

With an open-network approach instead of a platform-centric one, ONDC, a UPI for e-commerce, aims to democratize digital or electronic commerce. Merchants will be allowed to store their data through ONDC in order to contact customers and develop credit histories.

4. How can I join ONDC in India?

The first step in becoming a seller on the ONDC network for Indians is to find a feature-rich, all-inclusive ONDC network app such as Mystore and register on it. An intuitive open network India website log in is provided to vendors via the Mystore seller app.

5. Can we Sell on ONDC?

The ONDC network follows open network protocols, in contrast to conventional marketplaces. It offers a welcoming, inclusive atmosphere for vendors to list their goods online. With seller apps like Mystore that are connected to the ONDC network, any seller may easily register on the network.



Last Updated : 23 Nov, 2023
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