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    Understanding ONDC

    • Team ONDC
    • By   Team 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 a 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 the “UPI of e-commerce”.

    Existing Platform-Centric Model

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

    Existing Platform Centric Model

    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's Network Centric Model

    What ONDC is:

    • An open network
    • Eliminates the need for a central intermediary
    • An enabler for e-commerce expansion
    • An enabler for broad-based innovation
    • Market and Community-led initiative

    What ONDC is NOT:

    • An application or a platform
    • A central intermediary
    • A medium to help digitize businesses
    • A regulator
    Tag:

    ONDC

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