ONDC
What is ONDC?
- Open Network for Digital Commerce (ONDC) is an initiative of the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce to create an open, inclusive and competitive marketplace.
- Launched in 2021 as a non-profit company, ONDC aims to create a network of interconnected e-marketplaces through which sellers can list and sell their products directly to customers.
- Currently, in the platform-centric model, marketplaces have end-to-end control, right from seller on-boarding, customer acquisition, order fulfillment, complaint redressal and managing payments.
- ONDC will be based on open protocol and will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.
- The ONDC model seeks to replicate UPI’s success in digital payments by simplifying the entire online shopping process, just as UPI facilitates mobile payments through different payment apps.
Significance
- ONDC goes beyond the current platform-centric digital commerce model where the buyer and seller have to use the same platform or application to be digitally visible and do a business transaction.
- Providers and consumers would be able to use any compatible application of their choice for exchange of information and carrying out transactions over ONDC.
- The platform aims to create new opportunities, curb digital monopolies and by supporting micro, small and medium enterprises and small traders and help them get on online platforms.
- The ONDC will standardise operations like cataloguing, inventory management, order management and order fulfilment, hence making it simpler and easier for small businesses to be discoverable over network and conduct business.
Why in News?
- As on January 2, 2024, the sellers and service providers are spread across 616+ cities expanding the geographical coverage of the ONDC network.
Subscribe
Login
0 Comments