E-commerce platform Snapdeal announced on Tuesday that it has begun receiving orders through Open Network for Digital Commerce (ONDC). This move will allow buyers using ONDC seamless access to Snapdeal's broad selection of value merchandise, the company said in a statement.
Snapdeal added that its initial orders via ONDC have been from cities like Ajmer, Gurdaspur, Aligarh, Indore, Kakinada, and Amravati, with a focus on home and kitchen products, including bedsheets, towels, utensils, storage and serving sets, and kitchen tools. The company plans to expand its offering to include fashion and beauty and personal care categories.
Snapdeal draws more than 86 percent of its orders from outside metro cities, with more than 72 percent of the orders flowing from buyers living in smaller cities and towns. With an exclusive focus on the value segment, more than 95 percent of the products sold on Snapdeal are priced below Rs 1,000.
As part of the collaboration, buyers coming via ONDC will be able to access a large catalogue covering home and kitchen products. Snapdeal also said that it is in the process of expanding access to the Fashion, and Beauty & Personal Care categories.
"The fashion category will include apparel, footwear and accessories for kids, women and men. The accessories include fast-selling products like wallets, belts, sunglasses and watches. The personal care category will include skin care, hair care and oral care products and deodorants, while the beauty category will include a range of make-up products including lipsticks, nail polish and eye make-up,” the statement read.
According to Unicommerce, an e-commerce enablement platform, e-commerce growth in India has moved beyond large cities to hundreds of Tier 2, 3, and smaller cities. The market share of Tier 2 and Tier 3 cities in 2022 was 41.5 percent and 21.4 percent, respectively. The Red Seer Report predicts that mid-income buyers from India's Tier 2+ cities covering more than 80 percent of India's population will triple in size in five years, from approximately 78 million in 2021 to nearly 256 million by 2026.
Snapdeal CEO Himanshu Chakrawarti said, "Enabling India's existing retail players, especially MSMEs, to embrace the online opportunity is the best way for India to reap the digital dividend for the largest section of society." He added that Snapdeal would continue to collaborate with ONDC to enable small and medium enterprises, sellers, and emerging brands to grow their business by tapping into customers across India through ONDC.
ONDC CEO T. Koshy said, "We're excited to have Snapdeal join the ONDC network with its repertoire of merchants from across the country with a special focus on MSME among others. This is in line with that inclusive agenda of ONDC providing equal opportunities for big and small enterprises."
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