Understanding ONDC

Currently, digital markets are closed and platform-centric wherein buyers and sellers need to be on the same platform to carry out a transaction. The current model of e-commerce stifles innovation, creates significant barriers to entry for new players, and creates a gap between online demand and the local retail ecosystem. As a result participation in e-commerce is well below its potential and has tremendous opportunity to grow manifold.

ONDC, on the other hand, does not require that buyer and seller must use the same platform/application to do a business transaction. Instead, it is a network-centric model where, so long as platforms/applications are connected to this open network, buyers and sellers can transact irrespective of the platforms/applications they use. Its like “UPI of e-commerce”

Existing Platform Centric Model

Here, buyers and sellers must use the same platform/application to do a business transaction

ONDC’s NETWORK-CENTRIC MODEL

Buyers will be able to access all services currently provided by various sellers on different platforms, through a common network.

ONDC is
  • 1An open network
  • 2Eliminates need for central intermediary
  • 3An enabler for ecommerce expansion
  • 4An enabler for broad-based innovation
  • 5Market and Community led initiative
ONDC is not
  • 1An application or a platform
  • 2A central intermediary
  • 3A medium to help digitize businesses
  • 4A regulator