The Open Network for Digital Commerce (ONDC) is an ambitious project which holds the potential to transform e-commerce in India. It is an open digital network that allows every retail application to connect with each other just like UPI connects every payment app for money transfers. The ONDC was soft-launched in April 2022 in five main cities of the country. ONDC is an incorporated and non-profit private sector to provide alternatives to proprietary eCommerce platforms. With the potential to meet the demands of customers in e-commerce, and connect them with the nearest source of supply, it is yet to be seen how the ONDC meets its objectives.

Benefits of ONDC

Digitising the entire value chain and standardizing e-commerce operations, ONDC provides a holistic approach and ushers efficiency in the functioning of retail platforms. Once the ONDC is mandated, all e-commerce applications will operate with it. This would help boost all small retail applications by making them more discoverable. The ONDC will encourage customers and product suppliers with extensive innovations. It will benefit businesses with transparent transactions, gradual investments along with reduced marketing time and deployment time.

Challenges Faced

With the rolling out of the ONDC, the larger e-commerce applications started protests since their existing investments are already made in their methods and processes of technology and promotion. The popular platforms used by customers all around the world have their platforms. When the ONDC is expected to work properly, it will be highly capable of connecting people without having patience at the end of the day. However there are questions raised regarding the security of data in the platform.

The ONDC will become a revolutionary change in India’s e-commerce society by providing access to higher and larger markets.

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