Bengaluru consumers to get a whole new shopping experience !Beta testing of the Govt's revolutionary Open Network For Digital Commerce to begin from tomorrow.It is democratic, cost-effective & empowers buyers and small businesses. pic.twitter.com/HJOL78ZxvN
— Piyush Goyal (@PiyushGoyal) September 29, 2022
For example, if both Flipkart and Amazon integrate their platforms with ONDC, then a customer searching for a phone on Amazon would also be able to view results from Flipkart on the Amazon app.
The initiative is aimed at not just enhancing the value and experience of consumers, but also digitise the entire value chain, standardise operations and promote inclusion of suppliers.
ONDC functions on a format similar to that used in the Unified Payments Interface (UPI). Traders will be able to save their data, build a credit history and reach consumers through the network. The network will also ensure that confidentiality and privacy of data is maintained. Participants do not have to share transaction-level data with ONDC.
What is its aim?
In the next two years, ONDC aims to raise e-commerce penetration to 25 percent of the country’s consumer purchases from nearly 8 percent now. It also plans to bring 900 million buyers and 1.2 million sellers on board within the next five years.
Tech giant Microsoft joined ONDC in August, becoming the first multinational technology firm to join the platform. The US-based tech giant will introduce social e-commerce or a group buying experience in the Indian market through the platform.
Earlier in July, ONDC Chief Executive Officer T. Koshy had said seven entities had gone live and 10 more were expected to go live on the platform in a few months. By the end of the year, ONDC would have integrated 70 entities on to the network, Business Standard quoted Koshy as saying.
Some of the platforms that have already integrated with ONDC are Digit, Paytm, Go Frugal, eSamudaay, Seller App, Growth Falcons, Dunzo and Loadshare.
Some platforms like PhonePe, Kotak, Snapdeal, Ushop, Sonata, Ekart, Zoho, Bizom and Shiprocket are in advanced stages of development.
Others who have evinced interest include State Bank of India, ICICI Bank, HDFC Bank, India Post, IDBI Bank, Marico India, ITC store, Samsung India Electronics, Nivea India, Airtel and Delhivery.
