How ONDC Network Can Help D2C Brands in India Break Free From Monopolistic Marketplaces

India’s D2C startups have gained mass popularity in recent years. Today, dozens of direct-to-consumer businesses have a presence in every major business vertical. The biggest selling point of a D2C brand is building direct relationships with buyers on the back of quick delivery, competitive pricing, and instant query resolution.

The question of what emerging D2C brands in India should do to make an instant splash in 2023 is a bit tricky.

Depending on who you talk to, The Direct-To-Consumer business model is either a goldmine or a landmine. Should they follow the well-trodden path and go with one of the behemoths in Amazon or Flipkart? Or should they carve their own path and accept the obstacles and risks that come with it?

How Bad Are Monopolistic Marketplaces for D2C Brands

Buyers love it, competitors dread it, and merchants are undecided - That’s been the story of eCommerce giants ever since they stepped on the scene!

Many D2C startups see popular monopolistic marketplaces as a way of advertising their products to a wider audience. However, depending solely on Amazon or Flipkart for your sales or traffic is a dangerous business.

For instance, Amazon has a strict set of rules and guidelines that sellers and brands must follow or get sidelined. Also, these marketplaces charge hefty commission fees (on top of the cost of operating a D2C business through their website).

Some of the key challenges that D2C brands in India must be wary of when choosing Amazon or Flipkart as their go-to marketplaces for selling are listed below:

1) Exorbitant commissions rate eating into profits

2) The fulfilment/logistics belong to the platform

3) Zero insights into customer profiles and preferences

4) Amazon/Flipkart have their line of rival products

5) No direct way of marketing products

6) Your visibility can massively fluctuate without explanation

For these reasons (and more), Indian SMBs and direct-to-consumer enterprises have been clamouring for a viable alternative. “A neutral platform that allows them to sell independently and adopt first-rate tech solutions“, and in April of 2022, their prayers were answered.

Open Network for Digital Commerce is the seller-friendly, facilitator-driven network that you were looking for to reach pan-India markets. “Inclusivity” and “interoperability” is ONDC network to a tee. Let’s look at how brands can sell on ONDC network to address the aforementioned challenges of traditional eCommerce using a one-stop solution like Mystore.

How ONDC Network Helps Sellers Break Free From Monopolistic Marketplaces

Switching to the ONDC network using a robust solution like the Mystore seller app will get your sales journey started in just a few clicks! Most importantly, D2C brands in India will be able to define their own prices, terms and market boundaries and not be burdened with restrictive policies of monolithic platforms. Here are four ways in which the democratic platform will free all eCommerce players from the clutches of monopolistic markets:

By countering the market dominance of existing monopolies

ONDC network provides access to a broad base of buyers and sellers, offering the opportunity for smaller merchants to thrive in today’s ultra-competitive marketplace. The initiative will benefit everyone by creating more opportunities for growth and diversification, both among current buyers and new ones. This platform seeks to challenge historical monopolies in the market and create a balance that benefits each industry player.

By putting an end to expensive commission rates

Not many D2C brands in India can afford the financial risk associated with selling on mainstream eCommerce platforms. In addition to minimal pricing control, companies have to pay an extremely high commission fee (up to 35% for some product categories). Meanwhile, brands can sell on ONDC network for a nominal transaction fee via Mystore. The standard ONDC network transaction fee is several times less than the typical commission rates on other marketplaces. Also, Mystore sellers bear zero upfront costs to launch an online store.

Foster a culture of fair competition

“Preferential treatment“ is a common accusation levelled against eCommerce behemoths. Alternatively, the GOI expects the open network to generate equal opportunities through fair competition and foster an innovation-led ecosystem. Unlike popular platforms, helping small businesses and D2C startups reach maximum profitability will be high on the ONDC network agenda list, thanks to its not-for-profit nature. 

Helping brands overcome the logistics barrier

The open network is likely to drive logistics costs down, which is a massive boost to eCommerce startups who are facing the brunt of logistics fees. Companies can, therefore, directly hire their preferred on-network partners and fulfil orders to a wider audience quickly and securely. ONDC network and Mystore seller app are here to help D2C brands prosper by offering convenient and reliable value chain solutions.

Mystore: Simplifying ONDC Network Journey For D2C Brands

Mystore seller app provides end-to-end business solutions on the back of a powerful MACH architecture and a host of scalable APIs. For ambitious entrepreneurs looking to transform their eCommerce journey through ONDC network, Mystore provides the perfect solution needed to sell to pan-India buyers with ease. Here are the most popular Mystore seller app features that help drive sales and business efficiency:

• Catalogue Management
• Inventory management
• Order Tracking
• Instant and secure settlements
• Customer Analytics and Reporting
• In-Built SEO Support
• Integrated Marketing Tools
• Tax and GST-Compliance, etc.

Mystore brings merchants India’s most powerful ONDC network-connected marketplace through its compatible seller and buyer app. With its advanced admin panel and easy-to-use interface, merchants can get their D2C store up and running on the open network in minutes!

Final Takeaway

Now is the time to opt for the GOI-backed initiative. You might be surprised to learn just how easy it is to sell on ONDC network and how much it can benefit your D2C brand’s market reach in the long term. 

Many direct-to-consumer brands (and counting) have already onboarded the decentralised network to reach their brand goals. With a cutting-edge interface like the Mystore seller app, you can be one of them. So don’t wait. Join ONDC network with Mystore today!