In the time of digitization, India is one of the aggressive countries that has taken many decisive actions to improve this sector. Firstly India came up with UPI – Unified Payment Interface to simplify and revolutionize payment methods and is now brought up with ONDC – Open Network for Digital Commerce. Let’s see what ONDC is, how it works, and so many questions about ONDC.
So in this ONDC explained write-up, we will share some crucial information regarding the Government’s step in the e-commerce sector by including the following aspects like what is ONDC, the full form of ONDC, how ONDC works, who is the founder of ONDC, how to register on ONDC, how to use ONDC, how to order on ONDC, benefits of ONDC, ONDC cities, etc. There are multiple aspects to understand thoroughly about ONDC. So let’s start it with what is ONDC and then gradually untie the threads attached to it.
What Is ONDC?
What is ONDC? ONDC is basically an Open Network System aimed to promote the exchange of all types of goods and services among sellers and buyers. The platform promotes open network protocols that will be absolutely independent of any specific platform.
The full form of ONDC is Open Network for Digital Commerce. According to the founders, it will work on the same methodology we experienced in UPI payments or Unified Payment Interface. Here I am trying to explain to you in simple words.
What is ONDC? ONDC is not a software or app but an open system where sellers, retailers, merchants, manufacturers, shopkeepers, etc can register their products or services. Consumers will find all the goods and services under one roof like food, fashion, grocery, mobility, electronics, financial services, etc. which means you do not have to use different apps for different purposes and you can also compare the prices of the same product listed on different platforms.
Many big and small companies are registered on ONDC and many will do it soon due to the ONDC smart methodology.
How ONDC Works?
Most of us are just confused about the operating mechanism of ONDC, If you are stuck on how ONDC works? Here we will explain to you the whole working mechanism of ONDC and how this system will operate throughout the nation.
As we already know that ONDC is not a platform or software but a network that will be adopted by buyer applications like Paytm, PhonePe, Flipkart, Amazon, Meesho, etc. So consumers will go to the ONDC-connected platforms or applications, will search for their products and place orders.
From here seller’s duty start. Before that, we need to understand the seller’s end as well. Sellers can register their businesses on ONDC through seller apps and can sell their products. Here sellers get another option to choose their delivery partners out of registered logistics companies or ONDC-connected companies like Delhivery, Ekart Logistics, XpressBees, Ecom Express, etc.
If we consider small retailers, that is how they will be discovered between big players, so here comes ONDC gateway that will ensure recognition or discoverability of all sellers on ONDC, so basically it is a technology provider.
Apart from that Razorpay is the first payment gateway to register or connect with ONDC.
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Who Is The Founder of ONDC?
ONDC is established by the Department for Promotion of Industry and Internal Trade (DPIIT) of the Government of India with the aim to develop the e-commerce sector across the country. Quality Council of India and Protean are the initial founders of ONDC. Jaxay Shah is the Chairman of QCI (Quality Council of India) and Suresh Sethi is the MD & CEO of Protean eGov Technologies. It is a non-profit organization in India and registered under the Section 8 Company, under the companies act 2013 and it was launched in April 2022.
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How To Order On ONDC?
How to order on ONDC? Ordering a product from ONDC is similar to any other e-commerce app or website. All you need to do to order your goods and services on ONDC is to open the buyer app and search for the product you are looking for.
Then choose your product by comparing the prices of different sellers and place your order. This is how you can place your order on ONDC and make payments by using ONDC payment gateways.
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ONDC Cities
ONDC was launched on 29 April 2022 in its pilot testing in 5 cities of India – New Delhi, Bengaluru, Bhopal, Shillong, and Coimbatore. From April 2022 to May 2023, the testing of ONDC is still going on at a different level and seems like users and merchants are showing interest in ONDC which is the only thing that can make ONDC successful.
Currently, ONDC is actively operating its Alpha Stage (α-stage) testing in more than 236 cities in India and Beta Stage (β-stage) in two cities – Bangalore & Delhi.
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Benefits of ONDC
ONDC is a network established with so many objectives for a great e-commerce environment that will be spread throughout the nation to provide services to the smallest businesses and big businesses as well.
There are multiple aspects of ONDC that have been explained above. From the perspective of sellers and buyers, the network is come up with so many objectives to benefit to e-commerce sector of the country.
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So here we are sharing some of the benefits of ONDC you will experience with the network in the future. And you will also be sure that this revolutionary step by the Government of India was necessary for a better future.
- End of Monopolies of E-commerce Platforms – Today, we see that the e-commerce platforms running in the nation are monopolized and do not lie under a roof that can handle them or control them. The platforms are the owners of their own e-commerce market. So ONDC can end this monopoly as there will be not a single owner. The whole network will work together and things will proceed simultaneously.
- End of Centralization – Just like Cryptocurrencies dissolved the centralized system for currencies, ONDC will end the centralization of e-commerce platforms and will nurture a decentralized e-commerce network in the country.
- Access to Small and Local Business – This is one of the most crucial benefits of ONDC that small and local businesses will also get a chance to be discovered in the c-commerce market and can grow their businesses.
- More Choices and Freedom for Consumers – On the ONDC network, numerous companies will be registered including big and small players, even e-commerce platforms like Flipkart, Meesho, Amazon, etc. So by using only one app, you will find countless choices. So here you will get the freedom to choose as well as the freedom to compare products listed on different marketplaces.
- Data Privacy & Security – While shopping through ONDC you are not surfing at a single platform. This is a network, an open network, an ownerless network, that operates by using the open specification and open network protocol. So your data is surely secured.
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Conclusion
Revolutionary technological innovations of the government are really helping the people of the country, UPI was one of them. The best thing about these new technological innovations is that they are made in such a way that everyone in India can use them, ONDC is coming up to connect rural India with the eCommerce system.
After launching UPI in 2016, the government successfully introduced the online payment system to rural India, today we see that even a small shop has a QR code to receive online payments. The same is going to happen again in the eCommerce industry with ONDC.
In this write-up, we have tried to explain to you each and every aspect related to ONDC including what is ONDC, the full form of ONDC, how ONDC works, who is the founder of ONDC, how to register on ONDC, how to use ONDC, how to order on ONDC, benefits of ONDC, ONDC cities, etc. Hope the content was useful and informative enough for you. Thanks for reading.
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FAQs
Which cities are in ONDC?
ONDC was launched on 29 April 2022 in its pilot testing in 5 cities of India – New Delhi, Bengaluru, Bhopal, Shillong, and Coimbatore. Currently, ONDC is actively operating its Alpha Stage (α-stage) testing in more than 236 cities in India and Beta Stage (β-stage) in two cities – Bangalore & Delhi.
Is ONDC a government company?
It is a non-profit organization in India and registered under the Section 8 Company, under the companies act 2013, and it is established by the Department for Promotion of Industry and Internal Trade (DPIIT) of the Government of India with the aim to develop the e-commerce sector across the country.
Which company joined ONDC in India?
Several companies have joined ONDC in India including Amazon, Meesho, Flipkart, Paytm, PhonePe, Microsoft, Dunzo, Delhivery, e-Samudaay, Snapdeal, etc.
Who is the founder of ONDC?
Quality Council of India and Protean are the initial founders of ONDC. Jaxay Shah is the Chairman of QCI (Quality Council of India) and Suresh Sethi is the MD & CEO of Protean eGov Technologies.
