ONDC (Open Network for Digital Commerce) – Will It Replace Amazon & Flipkart?

Indian e-commerce has long felt like a two-horse race, with Amazon and Flipkart galloping ahead of everyone else. But lately, a new contender has trotted onto the track—ONDC, the Open Network for Digital Commerce. Some folks are calling it the “UPI of e-commerce,” and, as someone who’s watched the rise and fall of many a tech trend, This one’s got people buzzing. So, could ONDC really shake things up enough to dethrone the reigning champs? Let’s dig in.

What Exactly Is ONDC?

Instead of shopping on a single app, you’re able to browse products from countless sellers—big and small, using any app that’s plugged into a shared network. That’s ONDC in a nutshell. Launched back in 2021 by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC isn’t just another online store or flashy app. It’s more like a universal connector—a protocol that links buyer apps, seller apps, and service providers, all speaking the same digital language.

What’s the big idea? ONDC wants to:

• Break up the monopolies of the big platforms

• Get small businesses online using standardized rules

• Lower costs for sellers (because, let’s face it, those commissions can sting)

• Give buyers more options and control

• Protect everyone’s data from being mined by the giants

If you’re thinking, “Hey, this sounds a bit like what UPI did for payments,” you’re right on the money. ONDC is banking on that same open, interoperable spirit.

How Does ONDC Actually Work?

ONDC empowers buyers and sellers to interact directly without relying on a single platform. Imagine you’re looking to order groceries online. With ONDC, you can use any buyer app or platform registered to the network and browse products listed by multiple sellers. Similarly, sellers can easily onboard and display their catalogs across various buyer apps, increasing visibility.

A few things set ONDC apart:

• Interoperability: Buyers and sellers aren’t stuck on one app—they can connect across the network.

• Low Commissions: Instead of the 18-40% cut that Amazon or Flipkart might take, ONDC aims for a much friendlier 3-5%.

• Open Logistics: Sellers pick their own delivery partners, which should, in theory, mean faster and cheaper deliveries.

• Data Privacy: ONDC doesn’t hoard your transaction data, so your shopping habits aren’t being sold to the highest bidder.

It’s a system designed to let even your neighborhood kirana shop compete with the big brands—at least, that’s the dream.

ONDC vs. Amazon & Flipkart: How Do They Stack Up?

Amazon and Flipkart are like gated communities—you play by their rules or you don’t play at all. ONDC, on the other hand, is trying to be the open bazaar where everyone gets a stall.

Why Are People Excited About ONDC?

• MSMEs Get a Boost: Small businesses, artisans, and local vendors finally get a shot at national visibility. Imagine a spice seller in Kerala suddenly reaching customers in Delhi or Mumbai.

• Less Reliance on the Big Guys: Sellers can set their own prices, choose their own delivery partners, and aren’t at the mercy of platform algorithms.

• Cheaper for Sellers: Lower commissions mean better margins and, hopefully, better prices for buyers too.

• More Choices for Consumers: You’re not locked into one app’s catalog—you get a buffet of options. As the landscape broadens, businesses need to optimize their listings using an E-commerce SEO Guide to stand out in an open marketplace like ONDC.

• Bridging the Urban-Rural Gap: By bringing farmers, street vendors, and rural businesses online, ONDC could make e-commerce more inclusive.

• Better Data Privacy: Since ONDC doesn’t gobble up your data, you don’t have to worry about your shopping habits being turned into the next big ad campaign.

Challenges ONDC Must Overcome

• Tech & Logistics: Building a network as slick and reliable as Amazon or Flipkart? That’s a tall order.

• Getting People Onboard: Sure, 300,000 service providers have joined, but convincing millions of sellers and buyers to try something new isn’t easy.

• Operational Headaches: Making sure all those apps, sellers, and logistics companies play nicely together is no small feat.

• The Giants Won’t Go Quietly: Amazon and Flipkart have deep pockets and can roll out discounts or new features at the drop of a hat.

• Delivery to Every Corner: ONDC needs reliable logistics partners who can deliver everywhere—from Mumbai to the smallest village.

• Early Glitches: Beta testers have already found bugs—missing order options, late deliveries, that sort of thing. It’s a work in progress.

Will ONDC Replace Amazon & Flipkart?

Not overnight. Amazon and Flipkart have spent years building trust, technology, and loyal customer bases. ONDC isn’t likely to topple them anytime soon. But here’s the thing: ONDC doesn’t have to “replace” the giants to make a huge impact. What it offers is an alternative—a way for small businesses and underserved consumers to get a fairer shake. If ONDC can iron out its kinks and win over enough sellers and buyers, it could fundamentally change how e-commerce works in India.

Final Thoughts

ONDC is a bold bet on a more open, inclusive, and fair e-commerce future. It’s not without its challenges (what big idea isn’t?), but if it succeeds, it could rewrite the rules of the game. Curious about how to get started with ONDC or wondering if it’s right for your business? That’s where having a savvy guide comes in handy.

At White Bunnie, we’re here to help you navigate this new landscape—no jargon, just real advice. Ready to explore? Let’s connect and see what ONDC can do for you.

Neha Garg

Neha is the CEO at White Bunnie, a renowned digital marketing agency. With a proven track record of driving business success, he spearheads innovative ideas and strategies that captivate users and amplify goals achievements.