Pilot phase of open e-commerce network
GS Paper - 3 (Economy)
India on 29 April 2022 launched the pilot phase of open network for digital commerce (ONDC), a UPI-type protocol, in five cities with an aim to democratise the fast growing e-commerce sector, help small retailers and reduce dominance of online retail giants. After UPI, another game changing idea to democratise commerce - ONDC soft launch to select consumers, sellers and logistics providers. Get ready for a world of choice, convenience and transparency.
- The initiative is also aimed at curbing the dominance of two large multinational e-commerce players, which control more than half of the country's e-commerce trading, limit access to the market, and give preferential treatment to certain sellers and squeeze supplier margins.
- As many as 80 firms are currently working with the ONDC and they are at different stages of integration.
- These companies are making their apps for sellers or buyers or logistics or payment gateways.
- At the pilot phase, the target is to onboard 150 retailers in five cities - Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore.
- In the pilot phase, the ONDC has roped in eSamudaay, ERP Player Gofrugal, digital marketing outfit Growth Falcon, and automation and data insights outfit Sellerapp to work with sellers.
- It would focus on apps in regional languages for both buyers and sellers to tap small merchants and rural consumers.