How is ONDC Network Going to Level The Ecommerce Playing Field in India

The initial implementation of the ONDC network showed tremendous growth potential during its pilot launch. As India enters its next phase of economic growth, ONDC network will play a critical role in empowering all kinds of sellers to go digital. Merchants are excited to see how they can sell on ONDC network and participate in this eCommerce revolution.

Let’s understand the need for the ONDC network and how the revolutionary concept will help level the playing field for small, marginalised retailers in the digital realm.

India’s uneven eCommerce playing field

It’s no secret that large shopping platforms like Amazon and Flipkart control over 60% of India’s eCommerce ecosystem. These marketplaces leverage their dominance to rank their own products at the top of search results, leaving small sellers with minimal traffic/visibility.

Another obvious con of enlisting on Amazon or Flipkart is the exorbitant fees. In addition to high commission fees, merchants are bound to pay a fixed referral fee and an FBA fee to Amazon.

On top of all that, add preferential treatment, non-transparent algorithms, shady competitors, and contractual lock-ins, and the playing field is heavily tilted in favour of prominent, established players.

Hence, more and more sellers are looking to list on ONDC network and stand out from the intense market competition. The GoI’s latest initiative is committed to serving equal opportunities to pan-India sellers and optimising India’s increasing eCommerce penetration.

5 Ways ONDC Network will level India’s eCommerce playing field

Here are the five ways in which the democratic, neutral network will level the playing field for micro, small, and medium-scale businesses in India.

1. By adopting an open-network model

Amazon’s platform-centricity is a concern as it allows the behemoth to access diverse expertise and technologies while diluting other market spheres. In contrast to the platform-centric model adopted by monolithic platforms, ONDC Protocol is built on open-sourced methodology.

Thus, the neutral platform deploys open specifications and open-source protocols independent of any regulatory platform or intermediaries. Therefore, you can sell on ONDC network using technologies that give your business better visibility. 

2. By providing on-network logistics and delivery options

White-collar brands can afford top-of-the-line logistics services to sell to hyperlocal, local, or pan-India buyers. A typical, small-scale seller doesn’t have that luxury. Small sellers either lack the finances or network reach (or sometimes both) to deliver efficient logistics when selling on popular platforms.

However, you can find a list of certified logistics partners on the open network. For optimal customer experience, it’s vital to deliver products quickly and securely, which Mystore helps you with through its range of cutting-edge features.

With the Mystore seller app, sellers can connect with multiple ONDC Network-approved logistics providers and scale their shipping capabilities to offer nationwide delivery.

3. By reducing the customer acquisition and commission costs

Many SMEs find eCommerce unaffordable. Imagine selling products at the lowest prices, with free shipping, and paying a commission fee that could range from 15 to 35% of your total sales. If you wish to sell on Amazon, you need to pay upfront, and there’s no guarantee that you’ll yield a positive ROI.

However, with ONDC network, that has changed. For no upfront costs, sellers can join the open network through a cutting-edge solution like the Mystore seller app. Sell on ONDC network for a minimal transaction fee, which is much lower than the commissions you pay to Amazon or Flipkart.

4. By improving flexibility and customer engagement:

The open network bridges the gap between buyers and sellers for seamless communication and transactions. Customers can choose their preferred payment options when buying from ONDC Network-affiliated vendors. The final payment will be credited to your linked account based on the individual payment cycle of your buyer application.

The payment cycle is quick and painless for merchants registered with the Mystore seller app. The amount is processed manually every Friday based on the return status of the sold product.

5. By offering network-wide visibility

Established brands often flex their financial muscle to gain an unfair advantage over their smaller counterparts. Amazon sellers use any means necessary to direct maximum traffic to their own stores, including underhanding tactics like predatory pricing and selling counterfeit products. It’s an ongoing issue that affects small players the most.

You can list on ONDC network, and your catalogue will instantly be visible to all nearby sellers. Also, customers are instantly matched with sellers based on their search parameters. However, no preferential treatment or shady algorithms are involved with ONDC network. All sellers get an equal opportunity to cater to the same audience, regardless of their size and resources.

Conclusion

Small Indian merchants have been ignored for far too long. But with the recent introduction of UPI and ONDC network, it’s clear that the online marketplace will become more conducive to local, independent merchants.

Built on a powerful MACH architecture, the Mystore seller app is tailored to a seller’s needs and helps you leverage the open network for rapid growth. So, ready to take the next step in your eCommerce journey? Register on ONDC network with Mystore today.