Potential Effects of ONDC on eCommerce Software Development?
Table of Contents
You must have gone through the ONDC headlines; however, do you know the actual concept of ONDC and what deviations it will bring in? Is it the eCommerce website being launched and controlled by the Indian government or something else?
What effects will it place on the sellers and buyers of the marketplace? We will answer all these essential stuff in this article.
The Government of India has introduced the pilot and MVP phase of ONDC (Open Network for Digital Commerce). The operations have been initiated in 5 cities in India, and the project is planned to comprise around 100 cities in India by August 2022.
With ONDC, the objective of the Indian government is to end the domination of leading eCommerce companies offering an equal chance to all other players in the online marketplace.
What does the ONDC Aim to Accomplish?
The Unified Payment Interface (UPI) has transformed the digital payments realm. ONDC seeks to accomplish something comparable for eCommerce websites.
Its prime objective is to better “democratize” digital commerce, shifting it from platform-centric business models such as Amazon and Flipkart to a precisely organized open network.
ONDC may facilitate more sellers to be digitally observable. The digital transactions will be performed through an open network.
As per involved stakeholders, the system may enable merchants and consumers to break the challenges and silos that prevail today. It will sooner or later touch every online and offline business, from retail and food to diverse mobility solutions.
Should Offline Businesses Be Concerned About the ONDC?
Whenever we discuss about online shopping, ‘Flipkart and Amazon’ arrive in the conversation. That’s because these are giant eCommerce superpowers directing the Indian retail marketplaces. These eCommerce companies are massive aggregators amid consumers and manufacturers or sellers.
So, if you purchase a watch worth Rs 2,500 for Rs 600 from an eCommerce site, these companies are still making enormous profits, hurting offline small-sized businesses.
To diminish this exploitation of aggregator superpower, the government of India has come up with ‘Open Network for Digital Commerce (ONDC),’ which will help offline businesses easily come online and enable their business.
Why It is a Golden Scenario for Bringing Business Online
To date, if your presence on online platforms were not extensive, you would have been blocked by big-sized dealers ruling eCommerce platforms. However, ONDC dismisses this supremacy from its fundamental roots.
No matter if you are listing your products on a present eCommerce web portal or your site, as long as it is being registered with ONDC, you will be visible likewise to any big-sized dealer in the sector.
So, it is a golden scenario to bring your business online and target a vast customer base. Taking the correct decision at this instant can take your business to the next level effortlessly.
Working Principle of ONDC Leading to Reshape eCommerce Development
The working principle of ONDC is engrossed more in network-centric tactics instead of platform-centric tactics. The network intends to bring all the eCommerce platforms into one single place.
The eCommerce space of India is presently controlled by two significant players, which are Amazon and Flipkart. So, it is tough for other eCommerce platforms and sellers to make business space themselves.
Also, some of the large-sized dealers have domination on these two platforms, making it problematic for other dealers to scale their business. ONDC will make sure that all the platforms, dealers, sellers, and delivery partners leverage one platform with equivalent prominence.
ONDC aims to make the digital market reachable to all. Now, the small and medium-sized business players will be able to quickly register themselves on the digital commerce platform and get the attention of the big-sized dealers or sellers having monopolies.
How Can IndiaNIC Assist You in Modern-day eCommerce Software Development?
Once you have decided to initiate your digital journey, the foremost thing you will require is an eCommerce site or platform. With the assistance of ONDC, you are going to display your products to a far-reaching audience and range. So, your eCommerce site must improve the digital shopping experience of the user base.
We at IndiaNIC offer you the backing of proficient and experienced developers that will assist you in building your eCommerce site. The website will be developed, designed, and shaped as per your precise requirements to make sure a brilliant experience for you and your customer base.
Key Takeaways
ONDC is a kind of eCommerce platform and network launched by the government of India. The platform’s prime focus is to eradicate the dominance and control of two big-sized eCommerce players from the online landscape of India and offer equal business opportunities with sales growth to all the sellers and dealers.
Following a network-centric methodology, ONDC will connect the sellers, purchasers, and delivery partners from diverse platforms to each other, thus increasing the choices to choose products from and for everyone.
FAQs on Effects and Impacts of ONDC on eCommerce Business
What is ONDC and its purpose?
Open Network for Digital Commerce (ONDC) is a private non-profit organization launched in April 2022 by the Department for Promotion of Industry and Internal Trade of the Government of India to build open networks for online commerce.
What issues does ONDC face?
A massive awareness campaign has to be built and well-organized as most small-sized business owners lack the technical proficiency to get involved in this program. Small-sized businesses even lack the needed resources to match the offers and discounts provided by Flipkart and Amazon.
How will ONDC work and perform?
Consumers will be able to access sellers on ONDC by leveraging any application that is unified with the network. Sellers will manage deliveries through the tie-ups with logistics companies. ONDC will even have services such as ledgers and payment processors for involved sellers.
When and Where will ONDC operate?
- The ONDC is already operating its pilot program in Bangalore, New Delhi, Coimbatore, Bhopal, and Shillong. It will reach 100 cities by August 2022 and open it to a broader range of the public.
- The program is presently in the beta-testing stage with merely five sellers and a partial set of buyers.
Why is ONDC significant?
- ONDC will assist in shortening the monopoly of big-sized eCommerce players and upsurge the reach of small-sized merchants. It will also help make a more significant number of purchasers obtainable to all the sellers on one network. So, with this approach, both new and current purchasers will benefit from this initiative.
- The Indian government further claims that ONDC will assist in ending greedy pricing in higher levels of profit margin and higher value products.
