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What is ONDC?

E-commerce has transformed the way businesses operate in India’s tech-driven economy. With the widespread adoption of the “anything-anywhere-anytime” shopping concept, India’s digital commerce market growth sees no leaps and bounds. The forecasted revenue of e-commerce is expected to reach US$71.29 billion by 2023. The growth can be up to 13.9% over the next five years. This indicates that the E-commerce sector will continue to play a significant role in India’s economy and its development.

The Indian government has taken steps to tackle monopolistic practices in the country’s e-commerce ecosystem by launching ONDC – Open Network for Digital Commerce – which operates on an open protocol. The beta launch of this network took place in Bengaluru, where it processed 161 orders in a single day. This move is aimed at promoting fair competition and creating a level playing field for all players in the e-commerce sector in India.

What is ONDC?

Open Network for Digital Commerce (ONDC) is an Indian government initiative which is designed to make the e-commerce sector more inclusive.

Small retailers in India have faced challenges in dealing with dominant e-commerce giants who charge huge fees for products. This has led to higher purchase costs for small retailers, who get limited options to choose from. ONDC intends to address this issue by providing an alternative platform that charges significantly lower fees, thereby enabling micro, small, and medium enterprises, as well as small traders, to participate in online marketplaces.

Its key objective is to transition from a platform-based model to an open network-based model. It will increase market competition and reduce monopoly in the e-commerce space.

How does ONDC Work?

It will function as an open network opening opportunities in the e-commerce sector. Local shop owners can reach out to their potential consumers. They can display their products and services on the search results of any app. Now consumers can shop for these using the ONDC integrated platform.

This integration means that a consumer searching for a product on a specific app, such as Amazon, will also see results from other integrated platforms like Flipkart. However, it is possible only when the present sellers and buyers have onboarded their data on this platform. It will be interesting to see how this new approach is received by both consumers and businesses.

Features and Benefits of ONDC

  1. Local commerce sector can reach on the same platform. Mobility, food ordering delivery, grocery, travel and hotel etc. everything can be reached in one place.
  2. It will work as a single open network for all the sellers and buyers.
  3. Increased digital visibility and availability of buyers and sellers irrespective of the app they use.
  4. Merchants can build a credit history by saving data.
  5. The system is compliant with the Information Technology Act 2000
  6. Payments are possible using any UPI Payment Apps.
  7. Reduced cost of sale and purchase of those products.

Why ONDC is crucial for India?

India’s adoption of digital payments, particularly through UPI, has resulted in unparalleled ease and convenience for customers. More and more Indians are switching to contactless payment modes, and we are emerging as a leader in the field of digital payments. The E-commerce sector in India has witnessed an impressive 11.8% growth in digital payments. The ONDC, a network for financial services, is even poised to offer promising prospects for industry players.

At present facing apps and sellers, apps work separately while apps like Flipkart and Amazon functioning for both buyers and sellers. But ONDC will bring a complete change to the scenario. On this platform, both buyers and sellers can be available together but hosted separately. Although the commerce ministry has no plans to cap the commission charged, the platform is promising to provide low selling and buying prices.

Unlocking Opportunities

  • Impact of ONDC on FinTech: It gives opportunities for B2B payment gateways to support their retail payments. With its expected increase in UPI transactions, FinTechs would need to provide reconciliation frameworks. It will give better visibility of payments and also save time on routine audits. Many SME Neo banks and FinTech institutions are aggregated and are eager to onboard onto the ONDC network. FinTechs can also offer a range of services, including accounting and inventory management, to sellers through this platform.
  • Impact of ONDC on Banks: Many prominent financial institutions and banks in the country are demonstrating significant interest in the ONDC network. These banks also have invested in ONDC to create a competitive E-commerce marketplace. It’s expected to draw synergies from the network’s structure that will help in providing credit to suppliers, sellers, and others within the network. Banks with no physical existence can also benefit from it. It will also increase their reach in tier 2 cities as well as villages. They can also use solutions like working capital financing, term loans, and merchant settlement transactions to promote financial inclusion. Banks that have cash flow-based credit approval systems for the Open Credit Enablement Network (OCEN) are also looking to extend these services to ONDC.
  • Impact of ONDC on Digital India: In India, this will transform the landscape of digital lending in a connected ecosystem. With the addition of more sellers, there will be an increasing demand for revenue-based financing, working capital loans, and innovative supply chain financing solutions. Moreover, it will boost retail lending by introducing Buy Now, Pay Later solutions. Since it will enable customers to make purchases on credit, thus helping thin-file borrowers build their credit history.

Top 10 ONDC seller apps in 2023

  1. Mystore
  2. eSamudaay
  3. GOFRUGAL technologies
  4. Growth Falcons
  5. SellerApp
  6. ITC Store
  7. uEngage
  8. EnStore
  9. Digiit
  10. eVitalRx

1. Mystore

Mystore is a marketplace connected to ONDC that helps SMEs in India sell their products online. It offers a wide range of features, including:

  • Catalog management: Sellers can easily create and manage their product catalogs on Mystore.
  • Order fulfillment: Mystore helps sellers to fulfill orders efficiently by integrating with popular shipping providers.
  • Payment processing: Mystore supports a variety of payment methods, including UPI, credit cards, and debit cards.
  • Analytics and insights: Mystore provides sellers with insights into customer behavior and sales trends, which can help them to make better business decisions.

2. eSamudaay

eSamudaay is a digital commerce platform that is building a network of community-based e-commerce centers across India. Its ONDC Seller App allows sellers to list their products on the eSamudaay platform and reach a wider customer base.

3. GOFRUGAL Technologies

GOFRUGAL technologies provides advanced solutions for ONDC network selling to retail businesses. Its ONDC Seller App helps sellers to manage their inventory, orders, and payments efficiently.

4. Growth Falcons

Growth Falcons is a leading e-commerce seller management company that has launched an ONDC Seller App. It offers a variety of features to help sellers grow their businesses, including:

  • Product listing and optimization
  • Order management and fulfillment
  • Customer support
  • Marketing and advertising

5. SellerApp

SellerApp is a popular e-commerce seller app that now supports ONDC selling. It offers a variety of features, such as:

  • Product listing and management
  • Order management and fulfillment
  • Inventory management
  • Customer support
  • Integration with popular payment and shipping platforms

6. ITC Store

ITC Store is a digital commerce platform launched by ITC Limited, one of India’s largest consumer goods companies. ITC Store offers a wide range of products, including groceries, personal care items, and homecare products. ITC Store is also integrated with ONDC, which means that sellers can list their products on the ITC Store platform and reach a wider customer base.

7. uEngage

uEngage is a digital commerce platform that helps businesses to build and manage their own e-commerce stores. It offers a variety of features, including:

  • Product listing and management
  • Order management and fulfillment
  • Payment processing
  • Customer support
  • Marketing and advertising tools

uEngage is also integrated with ONDC, which means that sellers can list their products on the uEngage platform and reach a wider customer base.

8. EnStore

EnStore is a digital commerce platform that focuses on helping small businesses to sell online. It offers a variety of features, including:

  • Easy product listing and management
  • Integration with popular payment and shipping platforms
  • Affordable pricing

EnStore is also integrated with ONDC, which means that sellers can list their products on the EnStore platform and reach a wider customer base.

9. Digiit

Digiit is a digital commerce platform that helps businesses to sell online across multiple channels, including e-commerce marketplaces, social media platforms, and their own websites. It offers a variety of features, including:

  • Centralized product and inventory management
  • Order management and fulfillment
  • Integration with popular payment and shipping platforms
  • Marketing and advertising tools

Digiit is also integrated with ONDC, which means that sellers can list their products on the Digiit platform and reach a wider customer base.

10. eVitalRx

eVitalRx is a digital pharmacy platform that helps pharmacies to sell medicines online. It offers a variety of features, including:

  • Easy product listing and management
  • Integration with popular payment and shipping platforms
  • Patient management tools

eVitalRx is also integrated with ONDC, which means that pharmacies can list their products on the eVitalRx platform and reach a wider customer base.

List of Top 5 buyer apps in 2023

  1. Paytm
  2. PhonePe
  3. Mystore
  4. Magicpin
  5. Meesho

These apps offer a wide range of products and services, from groceries and electronics to clothing and home goods. They also offer a variety of features, such as easy returns, secure payment options, and integration with ONDC.

1. Paytm

Paytm is a digital payments platform that has launched an ONDC buyer app. It offers a wide range of products and services from a variety of sellers. Paytm is known for its convenient shopping experience, fast shipping, and competitive prices.

2. PhonePe

PhonePe is another digital payments platform that has launched an ONDC buyer app. It offers a wide range of products and services from a variety of sellers. PhonePe is known for its convenient shopping experience, fast shipping, and competitive prices.

3. Mystore

Mystore is a dedicated ONDC buyer app that offers a wide range of products and services from a variety of sellers. It is known for its easy-to-use interface and its focus on providing a good customer experience.

4. Magicpin

Magicpin is a hyperlocal discovery and lifestyle app that has launched an ONDC buyer app. It offers a wide range of products and services from a variety of sellers, with a focus on local businesses. Magicpin is known for its recommendations and its user-generated content.

5. Meesho

Meesho is a social commerce platform that has launched an ONDC buyer app. It offers a wide range of products and services from a variety of sellers, with a focus on affordable prices. Meesho is known for its social commerce features, which allow users to share and sell products with their friends and family.

These are just a few of the many ONDC buyer apps that are available today. Shoppers can choose the app that best suits their needs and preferences.

How to Order Food and Grocery on ONDC

To order food and grocery on ONDC, you can follow these steps:

  1. Download an ONDC buyer app, such as Paytm, PhonePe, Mystore, Magicpin, or Meesho.
  2. Create an account or log in to your existing account.
  3. Select the “Food” or “Grocery” category, depending on what you want to order.
  4. Browse the list of restaurants or grocery stores that are available on ONDC.
  5. Select the restaurant or grocery store that you want to order from.
  6. Add the items that you want to order to your cart.
  7. Review your cart and proceed to checkout.
  8. Enter your delivery address and payment information.
  9. Place your order.

Once you have placed your order, you will receive a confirmation notification. You can track the status of your order in the app.

Here are some additional tips for ordering food and grocery on ONDC:

  • Some ONDC buyer apps may offer different features, such as the ability to filter restaurants by cuisine or price range. Be sure to explore the features of the app that you are using to find the best deals and options.
  • Many ONDC restaurants and grocery stores offer coupons and discounts. Be sure to check for coupons before you place your order.
  • You can also use your ONDC buyer app to order food and grocery for delivery or pickup.

ONDC is still in its early stages of development, but it is a promising new platform for ordering food and grocery online. As more restaurants and grocery stores join ONDC, customers will have more choices and better deals.

In recent year, India has seen a significant increase in the adoption of digital financial services. It is driven by regulatory initiatives and infrastructure developments such as IndiaStack. These initiatives have enabled FinTech companies to innovate and build new financial products and services that cater to the needs of underserved segments of the population.