The Indian E commerce marketplace is about USD 100 billion currently (mid 2023) with popular names like Amazon, Flipkart, Zomato, 1mg and few more.
The Need:
In recent times in India, it was quite challenging for both buyers and sellers, as few e-com delivery platforms monopolized and have been levying high commissions and taxes which makes the entire order’s value costly to the end customer.
The big tech” At-door Delivery” companies violated the Consumer Protection (E-Commerce) (Amendment) Rules, 2021, due to concentration of market power.
To prevent this Government of India’s (GOI), DPIIT, under Ministry of commerce initiated, an open network for digital commerce (ONDC), which eliminates the need for an intermediary and enables multi supplier e-commerce expansion and innovation.
What is it?
ONDC is an aggregator of almost all products and services including grocery, kirana, food, apparels, electronics, beauty & grooming, Household and almost all categories, which is delivered directly by the source through a logistic partners on lesser commission & charges ( this brings down overall cost) and no involvement of third party like (Zomato, Swiggy etc) required
Buyers and Sellers can transact regardless of the platforms and app they use. Restaurants, service provider will also have access to customers’ data on individual basis. It’s like the UPI of e-commerce.
The start:
ONDC was incepted on April 29th 2022, piloted in 4-5 cities and presently has expanded to 236 cities and claims to have over 29,000 vendors and 3.6 million products onboarded on the platform.
The ONDC platform is gradually attracting interest among consumers & business providers as well, because of vast seller, products & customer base with lesser commissions and cost cuts.
Although ONDC is still in fine tuning phase, a report predicts, that ONDC push India’s digital consumption to around $350 billion USD. The consumers base transacting digitally might be up from 165-180 million to 450-500 million by 2030.
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