Open Network for Digital Commerce [ONDC]

By : Neha Dhyani

Updated : May 13, 2022, 6:07

The process of purchasing products on the internet without the involvement of a human is known as digital commerce. The distinction is slight, but digital commerce ought to have still existed even if eCommerce were automated entirely - from marketing and sales to product delivery. While full-blown automation may appear to be a long shot, some of the world's top retail corporations are already using it. To put it simply, digital commerce is the evolution of eCommerce.

The Open Network for Digital Commerce (ONDC) is an open protocol network that will allow any network-enabled application to identify and engage in local commerce across areas such as mobility, shopping, food order and delivery, hotel booking, and travel, among others.

Open Network for Digital Commerce - Implementation

The Open Network for Digital Commerce (ONDC) was established as a private sector non-profit organisation on December 31, 2021, to democratise digital commerce (e-commerce) in India and provide alternatives to proprietary e-commerce sites.

The national government has formed a nine-member advisory group, which includes Infosys' Nandan Nilekani and the National Health Authority's CEO, RS Sharma, to explore the measures needed to develop and implement ONDC.

The Open Network for Digital Commerce (ONDC) will allow small businesses to collaborate with large corporations and offer clients modern distribution options.

The government is working to democratise e-commerce in the country through the Open Network for Digital Commerce so that millions of small mom-and-pop shops and small retailers do not become extinct like we have seen in the West but have an equal opportunity to engage using digital technologies to grow their businesses and serve their customers.

This is a step toward making e-commerce procedures open source, resulting in a platform that can be used by all online merchants.

Open Network for Digital Commerce [ONDC] Issues

On the model of the Unified Payments Interface, certain operational components such as seller onboarding, vendor search, price discovery, and product cataloguing might be made open source (UPI). For larger e-commerce enterprises with proprietary processes and technology in place for these activities, this could be an issue.

The initiative is seen as a step toward lowering the dominance of platforms such as Amazon and Flipkart, which the government accuses of abusing their monopoly power and breaking the law.

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Significance of Open Network for Digital Commerce

The ONDC is expected to digitise the whole value chain, standardise operations, stimulate supplier inclusion, improve logistical efficiency, and boost customer value.

Open Network for Digital Commerce would benefit smaller online stores and newcomers by improving discoverability, interoperability, and inclusion. It will help suppliers and customers to drive innovation and change businesses in sectors such as retail, food, and mobility by breaking the monopoly of large platforms. Time-to-market and time-to-scale are also expected to be greatly shortened.

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Open Network for Digital Commerce [ONDC] Aim

Open Network for Digital Commerce aims to help small retailers grow in their business and end the monopoly of large e-commerce companies and provide customers with an easier and wide variety of options.

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FAQs Open Network for Digital Commerce [ONDC]

Q1. When was Open Network for Digital Commerce project launched?

The Open Network for Digital Commerce (ONDC) was established as a private sector non-profit organisation on December 31, 2021.

Q2. When will the launch of Open Network for Digital Commerce take place?

Open Network for Digital Commerce's beta mode will be completed by the end of April, and the launch will take place in August.

Q3. Who launched the Open Network for Digital Commerce project?

The Department of Industry and Internal Trade launched the Open Network for Digital Commerce project (ONDC).

Q4. With regards to Open Network for Digital Commerce, what is the difference between E-Commerce and Digital Commerce?

With regards to Open Network for Digital Commerce, Setting up a website and selling your products and services online is called E-Commerce.

Digital Commerce is the purchasing and selling of products and services using the Internet, mobile networks, and commerce infrastructure.

Q5. What is the main target of the Open Network for Digital Commerce (ONDC) project?

The government hopes that Open Network for Digital Commerce would remove the dominance of a few giant platforms in the e-commerce business and provide buyers with more direct options to choose from.