How Grocery D2C Brands Can Leverage ONDC Network to Reach Pan-India Markets

In the post-pandemic world, the direct-to-consumer model has taken over the Indian eCommerce landscape. As more and more buyers continue to look online for their everyday grocery needs, D2C businesses are playing an increasingly important role in meeting their demands. From Gourmet Garden to True Elements, dozens of D2C brands have grown exponentially by offering hyperlocal grocery delivery at a reasonable price.

For a grocery D2C brand looking to cut costs and reach more buyers, ONDC network is a disruptive, game-changing initiative. What is this initiative all about? What challenges does it aim to resolve? And how can D2C companies sell on ONDC network to better their profit margins? Let’s unravel the mystery around this novel GOI-led initiative.

A Quick Introduction to ONDC Network

Open Network for Digital Commerce is a not-for-profit, decentralised network established by the central government to democratise the entire eCommerce chain. To achieve this, the initiative aims to onboard millions of small players (including D2C startups. local merchants, and MSMEs) on an even playing field.

The plan is to build an inclusive platform where buyers, sellers, and tech/logistics firms can connect seamlessly, irrespective of what platforms they use.

Join The ONDC Network To Reach Pan-India Markets

Grocery D2C brands can sell on ONDC network by simply registering on the platform through a feature-rich interface like the Mystore seller app. Just create a Mystore seller account and handle all orders, requests, and transactions from one place. The network implements open-network protocols to facilitate a seamless exchange of goods and services, giving all participants an equal opportunity to sell and grow.

The open network gives your customers access to more vendors (including hyperlocal D2C brands) for quicker and more reliable delivery. Buyers can choose their preferred mode of payment (COD, credit card, etc.) via an ONDC network-complaint buyer app and get all their grocery items delivered to their doorstep.

Talk about a win-win.

5 Biggest D2C Roadblocks that ONDC Network Resolves

The online grocery market is ever-changing, making it hard for local, small D2C brands to stay at the top. Several factors are at play that may affect an online grocery business’s bottom line, giving them sleepless nights. What are the five biggest stumbling blocks keeping a D2C brand from growing, and how are they resolved if you sell on ONDC network? Let’s find out.

1. Ever-rising market competition

The Direct-to-consumer marketplace is getting crowded. New players are on the market almost daily, making it difficult for companies to make their grocery items stand out. With 100+ active D2C enterprises today, staying competitive is becoming increasingly difficult. This is especially true for a D2C brand on Amazon with a small budget, low-profit margins and a small niche.

Meanwhile, the open network will give rise to fair and healthy competition with scope for mutual growth for all players. Here, merchants can list their products and gain equal discoverability as other established brands. Grocery sellers will find it easy to launch their own eCommerce storefronts through a compatible solution like the Mystore seller app.

2. Exorbitant commissions and other operative costs

Not too long ago, grocery brands could simply pay for an ad campaign or two, which was enough to attract customers. Amazon, in particular, is a fan-favourite as it provided newbie sellers with a perfect launching pad to kickstart an e-store. However, that’s changed. The overall customer acquisition and commission costs have risen exponentially (from 5 to 15%), making it challenging for a small D2C brand to profit.

In contrast, companies integrated with the open network have to pay far lower commission costs to sell on the open network. For zero upfront costs, you can leverage Mystore’s cutting-edge solutions to offer hyperlocal grocery delivery to customers throughout the network.

3. Stunted growth due to poor visibility

Any grocery D2C brand that fails to attract customers within the first 12 months of its existence is likely to dissolve. Many sellers can’t even capitalise on paid marketing on SEO due to a lack of in-depth knowledge of these brand-building strategies. Furthermore, if Amazon has its own line of grocery products to sell, then you can forget that your own brand is getting ahead in line on the search ranking pages.

Once again, Open Network for Digital Commerce resolves this by implementing a proprietary algorithm that ranks sellers based on the customer’s search relevancy. Hence, your grocery items will be matched with them based on buyers’ preferences (delivery time, charges, reviews, etc.). Gain uninterrupted product visibility with 100% transparency once you sell on ONDC network.

4. Building an omnichannel presence

Another reason why your D2C brand may fail is if your catalogue isn’t available for shopping on more than one sales channel or platform. To increase brand reach and boost sales, creating an omnichannel presence is imperative. Unfortunately, not every direct-to-consumer company has the in-house resources to build a presence on different platforms,

However, with open-network framework, that headache is eliminated. Your grocery products are automatically discoverable to all buyers using any app pre-integrated into the network. Furthermore, platforms like the Mystore seller app offer a multi-channel integration approach to help companies manage and fulfil grocery orders on multiple channels via a single admin panel.

5. Not finding an ideal logistics partner

Poor logistics can negatively impact an online business’s brand image, and many naive D2C startups have found that the hard way. Without a proper value chain infrastructure, your ability to deliver orders on time and within a reasonable budget is massively hampered.

If you lack in-house resources for professional order fulfilment, access to an affordable and reliable logistics partner can be a lifesaver. Thankfully, dozens of on-demand, approved logistics providers are available on the ONDC network. Countless Direct-2-Customer stores are leveraging the platform in-build value chain solutions for optimised hyperlocal grocery delivery.

Conclusion

There’s no doubt that Open Network for Digital Commerce has vast potential to transform the Indian eCommerce industry. The initiative is gradually expanding into all major cities across India, and hundreds of local merchants, small retailers, and D2Cs are joining the platform for better sales opportunities.

Joining the democratic network is really simple! Mystore seller app gives you the power to take your grocery D2C brand to greater heights through its vast array of powerful yet easy-to-use features. Become a registered vendor on ONDC network through Mystore and start selling today!