How Can Amazon Sellers Leverage ONDC Network

Making a case for ONDC Network

India is a sleeping giant in the global eCommerce conversation. As we move into 2023, online shopping will continue to influence the shopping patterns of pan-India customers. To no one’s surprise, Amazon is the most prominent and dominant player in e-retail, spreading its reach to crores of Indian customers across hundreds of cities and towns.

With the sheer amount of traffic the platform gets, you will expect all Amazon sellers in India to be rolling in cash. But that’s hardly the case. In reality, many Indian SMBs and hyperlocal merchants find selling on Amazon challenging and costly. ONDC network is a novel initiative aimed at neutralising the various problems with Amazon.

What does ONDC network mean, and how Amazon sellers on ONDC network can leverage the new market sensation to grow their business? Let’s get an in-depth look.

Why Amazon Sellers in India are fed up

Despite Amazon’s undeniable reach, it fails to address the age-old problem that Indian sellers face - standing apart from shady/established competitors. The platform’s low barriers to entry mean that thousands of sellers are selling the same products.

Furthermore, Amazon has a strict policy around payments. On top of hefty commissions and FBA fees, sellers are routinely penalised for petty violations. With a compromised cash flow, a local vendor may have to take loans just to keep his business afloat, which is far from ideal.

To top it all off, it’s never been more challenging to rank high on the search results unless you are an established brand or pay for targeted ads. All these reasons (and many more) keep small players from fully accepting eCommerce as a viable business. Fortunately, vendors who sell on ONDC network can mitigate these barriers and take their e-business forward.

What does ONDC Network stand for

Open Network for Digital Commerce protocol was launched in April 2022 to bring the small players to the forefront of eCommerce. Using a UPI-like architecture, the novel initiative plans to democratise India’s e-retail industry for inclusive and sustainable growth.

The not-for-profit platform will facilitate seamless communication between sellers, buyers, and service providers, irrespective of the platform/app they use. An open network will make eCommerce more inclusive, inter-operable and affordable for pan-India sellers

With access to wider audiences and better technologies, ONDC network aims to help brick-and-mortar businesses boost their selling power, thus ending the monopoly of eCommerce giants. To an Amazon seller on ONDC network, it means having direct access to the millions of online buyers without spending a large chunk of their incomes on commissions or improved traffic.

Awesome, right? But, to get started, you need to register with the open network via a compatible seller app. Mystore for Amazon Sellers is the ideal platform to dip into the eCommerce market.

Amazon sellers on ONDC network: What are the advantages?

1. Reach new buyers and increase brand awareness

Amazon’s algorithms strategically pit sellers against each other. The vendor who offers the best prices and fastest shipping ultimately wins, while the rest see their traffic dwindle.

Mystore for Amazon sellers helps with brand awareness through powerful marketing tools and unlocks new sales opportunities. Even those without an eCommerce background can benefit from being part of the open network and gaining maximum visibility.

2. No bias, no shady practices

Amazon doesn’t always have the sellers’ best interests at heart. Many merchants suffer from negligence, non-transparent policies, supply-chain disruptions, and other shady practices affecting their sales.

Meanwhile, ONDC network grants all sellers a level playing field by allowing any seller to join with equal visibility. Therefore, vendors that sell on ONDC network get instant access to millions of potential buyers without the fear of being suspended, banned, or infringed upon.

3. Control over logistics and shipping

To be fair, vendors can opt for Fulfilment By Amazon (FBA) or Fulfilment By Merchant (FBM) based on their logistics requirements. However, you cannot direct the customers to your independent store/business under any circumstances. Also, choosing Amazon for logistics support is both costly and makes you dependent on their level of proficiency.

Meanwhile, merchants who sell on ONDC network take full ownership of their logistics and shipping. Mystore for Amazon sellers lets you pick your on-network logistics partner from a list of approved vendors.

4. No upfront costs or exorbitant commissions

Amazon adopts a “pay to play” model, which is essentially a fancy way to charge multiple fees for its onboarded sellers. The platform’s hefty commission fee can range from 20-35% of the cart value. Add the listing and marketing fees to it, and it becomes clear why SMBs make minimal profits selling on Amazon.

Contrarily, vendors can sell on ONDC network for a commission rate of 8-10%, compared to the 18-40% that monopolistic marketplaces charge. Simply register on Mystore and start selling on the democratic network for no upfront or subscription costs. After that, you can leverage our “pay as you sell” model for quick transactions and flexible payments.

5. Transferable reviews and ratings

Amazon can quickly turn from a trusted partner to a direct competitor should you choose to sell elsewhere. Sellers are essentially tied to Amazon because they cannot migrate their service reviews and customer feedback to their site or another channel.

With ONDC network’s transparent, open-source methodology, your reviews are visible to all user segments, helping them make better decisions. Amazon sellers on ONDC network can thus aggressively push their brand across multiple platforms.

Conclusion

Selling on popular marketplaces like Amazon and Flipkart can be rewarding, but it also comes with several risks, especially for novice sellers. Mystore for Amazon sellers allows you to integrate your existing e-store with ONDC network and skyrocket your overall reach. Using Mystore’s advanced admin dashboard, users can seamlessly upload catalogues, track orders, manage sales, and access customer data in one click.

Kickstart your ONDC network journey with Mystore to supplement your profit margins and customer base.