The ONDC Blueprint: How to Build a Successful Digital Commerce Strategy?

Did you know that ONDC has grown around 40 times in 2023? When it comes to active internet users in India, it will be touching approximately 900 million by 2025, which makes it more essential to make investments in ecommerce development services that are bringing change in the market.

An Open Network for Digital Commerce has introduced all the right opportunities for your business to scale. But it is important to get a blueprint before you invest in the technology or trend.

In India, where millions of sellers depend on selling their products and services for living, it is important to tap into the’s potential of e-commerce. People from small towns or rural areas cannot access the opportunities of the digital marketplace.

In this blog piece, we will help you explore all segments of the ONDC platform, its features, benefits, challenges, and the future.

What is the ONDC platform?

It is an open protocol that is designed to democratize digital commerce. The main goal of the Indian government is to provide equal opportunities for everyone in the e-commerce sector. It is similar to a UPI open network that will enable businesses in the industry of food, delivery, grocery, hospitality, and more to meet their target audience from a single platform.

The three foundational pillars of ONDC ecommerce are:

Open Network: Scaling and innovation to deliver a decentralized model for better engagement.

Public Digital Infrastructure: A low-cost digital infrastructure that will help to grow the business. It is designed for buyers and sellers to discover mutually for digital transactions.

Open Ecosystem: Integrated community of innovations that share information to create new opportunities and resources for all.

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The vision is to provide a seamless connection between technology, shoppers, and retailers. In an open network, if the platforms or applications are interoperable, buyers and sellers can perform transactions no matter which platform or application they are using.

Who will win: Traditional E-commerce vs ONDC Platform?

1. Downloading e-commerce App

Traditional E-commerce

Buyers are expected to download an app to access the products and services from a particular seller.

ONDC

Buyers will be able to shop digitally without any need to download the application.

2. Platform-Centric Solution

Traditional E-commerce

E-commerce stores run on a platform-centric model, which means buyers and sellers should rely on the same online platform to connect. This restricts the buyers and sellers from meeting their potential audience on a large scale.

ONDC

Being an open-network model, merchants and customers can easily run payments without relying on any platform or apps they use with the ONDC online shopping solution.

3. Current Categories

Traditional E-commerce

E-commerce platforms will provide multiple options in all the fields, be it fashion, healthcare, beauty, or more.

ONDC

This solution has started with Fashion and Beauty, groceries, and home décor.

4. Onboarding Cost

Traditional E-commerce

The majority of e-commerce platforms will cost a hefty amount to deal with small businesses and sellers.

ONDC

While this is made cost-effective, which means around 4 to 10 times less than ecommerce platforms.

5. Ownership

Traditional E-commerce

Most of the online shops are privately owned by specific entities where business owners draft the terms and policies of selling to boost revenue.

ONDC

Any business or agency does not have control over the ONDC platform because it is not an app or service. It is an open-network supported by an an ecommerce network where suppliers, logistics, payments, and buyers connect through protocols.

What are the Key Objectives of ONDC?

As an experienced person in the industry, you must always look at the key objectives of ONDC e-commerce:

• To create an open, competitive, and inclusive marketplace, focus on promoting interoperability.
• Building a solution for population-scale adoption
• Bring digital commerce friendly for small business
• Make path for innovations and improvement in digital commerce
• Introduce rapid digitalization for MSMEs (Micro, Small, and Medium Enterprises) and consumers

What are the Benefits of ONDC for Businesses?

Reach Market Easily

ONDC enables businesses to reach a wide audience by providing a single digital marketplace. This eliminates the requirements of making the existence of multiple e-commerce platforms exist, reducing fragmentation.

Cost Optimization

Eliminate the requirement of intermediates and reduce operational complexities. ONDC helps businesses cut out costs effectively. With a simple supply chain and decreasing commissions, companies can offer competitive pricing to maintain great profit margins.

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Inventory management

It will offer small and medium size businesses with real-time visibility into their inventory across multiple channels. This will allow them to understand demand forecasting and inventory management, reducing the risk of understocking or overstocking.

Transparent and Trust

Using blockchain technology in Open Network for Digital Commerce ensures transparency in online transactions. Customers can easily gain trust that products they purchase are genuine, leading to increased confidence in ecommerce development services and reducing the chances of fraud benefiting businesses and customers.

Data Insights

ONDC provides access to valuable data analytics tools for businesses. This data will be helpful to gain better insights into the customer’s preferences, market trends, and interests. By making data-driven decisions, the business will be able to tailor their offerings and build strong marketing strategies.

Empower Small Businesses

It will help to level the game for small and medium businesses by completing with large companies with equal opportunities. The aim is to reduce the entry barriers and cost-effectiveness, making it an ideal solution for digital commerce.

Scaling Globally

While the initial focus is on the Indian Market, ONDC e-commerce has the potential to expand businesses globally. They are introducing the best practices and technology solutions to drive growth and innovation.

What are the Benefits of ONDC for Consumers?

Variety of Products

It will provide consumers with a broad range of products from a wide range of sellers. An expanded selection will allow consumers to discover unique and specialized items they might not be able to access through traditional e-commerce platforms.

Competitive Prices

The higher level of competition in ONDC can drive down prices, as businesses can offer competitive deals to engage customers. Now, consumers get cost-effective and better value for their investment.

Great Shopping experiences

ONDC has a unified system to simplify the user experiences with robust security measures and data protection. Customers can browse and purchase products from multiple sellers in a single place, streamlining the entire process.

Data Security

The Indian government is committed to safeguarding consumer data and privacy. To know their user information is secure, the team follows robust security measures and data protection protocols.

Personalized Recommendations

This solution will promote local businesses and artisans to enable consumers to support small companies buy locally. It will personalize the user experience based on their preferences and past shopping behavior.

How to get started with ONDC?

To make a presence in an Open Network for Digital Commerce, you might need experienced ecommerce development services to follow the series of steps:

Understanding ONDC: Take some time to understand ONDC and how it works. Research the government regulations and policies related to ONDC.

Registration: It is essential to register your business and comply with relevant legal requirements. This might include getting the necessary licenses and permits.

Create Digital Storefront: You are expected to have a digital storefront or online existence to list your products and services. If you do not have an existing ecommerce website, you can consider creating one using ONDC ecommerce platforms.

ONDC portal: Visit the official website, register and create an account for your ecommerce store. You may require to share details about business like name, location, products, and type to reach the potential customers.

KYC Verified: Know Your Customers verification to make your business legitimate and prepare for further documentation for the further process.

ONDC API: To list the products you need to integrate with the ONDC API (Application Programming Interface). This will allow you to upload information, manage inventory, and handle transactions.

List Products: After a successful integration, you can start listing the products on ONDC ecommerce platform. Make sure you add accurate product details, images, and pricing.

Manage Inventory: Update your inventory on the ONDC platform regularly to reflect the product availability and deliver good customer service.

What are the Challenges in ONDC?

When it comes to ONDC e-commerce it is important to explore the challenges:

Buyers

The app’s UI in the ONDC network requires improvement to boost customer engagement, as it is the most essential parameter to succeed.

There are some issues with the partial returns, longer delivery time, and compensation for bad experiences.

It faces issues relevant to inventory updating, quality, and digital adoption.

ONDC holds many unfulfilled orders placed by buyers, and the main reason for inaccurate inventory management in small and midsize enterprises.

Sellers

E-commerce is ahead of the curve when it comes to offering great discounts and boosting sales. While ONDC, the local sellers find it challenging to stand against such big brands and offer attractive discounts.

Online businesses face challenges moving to the ONDC network as migrating their product catalog is essential to meet potential audiences.

The Future of ONDC

As per the data below it has the right potential to disrupt the Indian ecommerce market and level the field for small businesses with the help of ecommerce development services. It will help to reduce the dominance of big brands and bring better opportunities for small and medium sized businesses.

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We hope you have all the information to understand ONDC and take the right action for the future. Still in doubt, you can hire ecommerce developers to ensure your business meets the demand of the industry.