Understanding ONDC

ONDC Jul 19, 2022

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