{"id":300,"date":"2024-07-24T13:19:16","date_gmt":"2024-07-24T13:19:16","guid":{"rendered":"https:\/\/geeksgrow.com\/?p=300"},"modified":"2025-04-04T19:43:46","modified_gmt":"2025-04-04T14:13:46","slug":"what-is-ondc-explained","status":"publish","type":"post","link":"https:\/\/geeksgrow.com\/blog\/what-is-ondc-explained\/","title":{"rendered":"What is ONDC: India&#8217;s Open Network for Digital Commerce Explained"},"content":{"rendered":"\n<p>Discover ONDC (Open Network for Digital Commerce), India&#8217;s transformative initiative aimed at creating an open e-commerce ecosystem. Learn about its technologies, benefits for buyers and sellers, and how it empowers small businesses while reshaping the digital commerce landscape.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is ONDC?<\/h2>\n\n\n\n<p>ONDC (Open Network for Digital Commerce) is a government-backed initiative that aims to create an open and interoperable e-commerce ecosystem in India. It establishes a direct connection between buyers and sellers while eliminating intermediaries, promoting fair competition and empowering small businesses.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does ONDC work?<\/h2>\n\n\n\n<p>ONDC uses open standards and protocols to enable seamless transactions between buyers and sellers across different platforms . It allows businesses of all sizes to directly engage with consumers, regardless of the platform they use.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of ONDC<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increased choice and competition for buyers<\/li>\n\n\n\n<li>Access to a wider market and better discoverability for sellers<\/li>\n\n\n\n<li>Lower commissions and elimination of intermediaries<\/li>\n\n\n\n<li>Enhanced efficiency and transparency in the e-commerce ecosystem<\/li>\n\n\n\n<li>Personalized recommendations and a seamless shopping experience for buyers<\/li>\n\n\n\n<li>Opportunity for small businesses and startups to compete on an equal footing<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">ONDC Pilot and Expansion<\/h2>\n\n\n\n<p>ONDC is currently running pilot programs in 5 cities: Bengaluru, New Delhi, Coimbatore, Bhopal, and Shillong. It aims to reach around 100 cities by August 2024 and open it to a wider public in the current 5 cities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">ONDC&#8217;s Transaction Targets<\/h2>\n\n\n\n<p>ONDC targets to raise e-commerce reach in the next 2 years to 25% of India&#8217;s consumer purchases, from 8% currently. It aims to sign up 900 million buyers and 1.2 million sellers on the shared network within the next 5 years, while achieving a gross merchandise value of $48 billion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Who can join ONDC?<\/h2>\n\n\n\n<p>ONDC is open to businesses of all sizes, including small and medium enterprises, startups, and large enterprises. Sellers can join the network by integrating with ONDC-compatible platforms, while buyers can access the network through various buyer applications.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What technologies power the ONDC network<\/h3>\n\n\n\n<p>ONDC (Open Network for Digital Commerce) utilizes several key technologies to power its open e-commerce network:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Open standards and protocols<\/strong>: Open Network for Digital Commerce uses open specifications and protocols to enable seamless transactions between buyers and sellers across different platforms<a href=\"https:\/\/internetfreedom.in\/ondc-an-explainer\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>Free and open source software<\/strong>: This E-commerce platform employs a &#8220;free software methodology&#8221; and open source components in its technology stack<a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>Buyer, seller and logistics registries<\/strong>: Microsoft and Oracle are working on developing registries for buyers, sellers and logistics providers on the ONDC network<a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>Network reputation index<\/strong>: Oracle is designing a neutral and transparent reputation index for sellers on this platform to build trust<a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>Online dispute resolution<\/strong>: An online dispute resolution framework is being developed to handle disputes between network participants<a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>Seller toolkit<\/strong>: Microsoft is providing a toolkit to ease the onboarding process for sellers joining ONDC<a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>Payment reconciliation<\/strong>: Razorpay is integrating a payment reconciliation service to provide a single view of all transactions with an audit trail for documentation<a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n\n\n\n<li><strong>Social commerce<\/strong>: Microsoft plans to introduce social commerce features on this e-commerce platform and launch a shopping app for price discovery<a href=\"https:\/\/en.wikipedia.org\/wiki\/Open_Network_for_Digital_Commerce\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a>.<\/li>\n<\/ul>\n\n\n\n<p>So in summary, Open Network Digital Commerce leverages open standards, registries, reputation systems, dispute resolution, seller tools, payments and social features &#8211; all built on open source software &#8211; to create an interoperable e-commerce ecosystem in India.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>ONDC has the potential to revolutionize the e-commerce landscape in India by promoting fair competition, empowering small businesses, and providing a seamless shopping experience for buyers. As the initiative continues to expand and gain traction, it will be interesting to see how it impacts the e-commerce market and the overall digital commerce ecosystem in the country.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Discover ONDC (Open Network for Digital Commerce), India&#8217;s transformative initiative aimed at creating an open e-commerce ecosystem. Learn about its technologies, benefits&#8230;<\/p>\n","protected":false},"author":2,"featured_media":1509,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_focuskw":"what is ONDC","_yoast_wpseo_title":"what is ONDC ? Explained","_yoast_wpseo_metadesc":"What is ONDC and it's role in reshaping India's digital commerce? 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