What is ONDC Network and How Does it Work For Indian Merchants

Want to establish your brand name in this fast-paced digital age?

Are you struggling to bring customers to your business? 

Be happy as there is a new way to grow your business. 

List on ONDC network and sell your products to pan India customers with ease. ONDC network is a novel initiative backed by the Government of India to bring equal opportunities for businesses of every size and scale. The revolutionary open network setup is transparent, and non-discriminative which enables sellers to list their products for digital buyers and sell them without third-party intervention. 

You just need to register on the open network through a trusted ONDC network-connected application like Mystore seller app. And you are all set to start selling on the open network.

In this blog, we have answered some of the biggest questions Indian sellers have about the ONDC network and how it empowers them for a better eCommerce experience.

Let’s get started.

ONDC Network: What Does it Mean? 

The new open network is a Government of India-backed initiative to streamline and standardize the digital commerce ecosystem in India. The primary goal of the democratic ONDC network is to promote interoperability and create a unified platform to sell and buy, making it easier for merchants and buyers to connect and enable seamless transactions.

The novel initiative was launched in September 2022, with a vision to facilitate online selling for SMEs, retailers, shopkeepers, D2C businesses, and startups in an effortless manner. ONDC network is an open and unified platform that bridges the gap between buyers and merchants by providing them with a neutral, transparent, and democratic platform.

In the next 5 years, The open network plans to onboard 20+ lakh sellers, offering their goods and services to 20+ crore buyers in more than 200+ cities in India. 

Is ONDC network the same as Amazon and Flipkart?

No, the ONDC network is completely different from Amazon and Flipkart.

Amazon and Flipkart are e-commerce marketplaces but as the name suggests,  ONDC Network is a network that connects buyers, sellers and other service providers through a network and standardized protocol.

Let's understand a little better with an example.

Suppose you have a business of fashion products. You register on Amazon to sell your products. As Amazon follows a platform-centric model, you must adhere to its rules and policies to conduct business on its platform. Additionally, you are required to pay upfront fees, subscriptions, and a substantial commission (typically ranging from 25-30%) on each sale.

The major challenge arises when you realize that Amazon is just one of many e-commerce marketplaces for fashion products. To reach potential customers, you must also be present on multiple other platforms like Flipkart, Myntra, Nykaa, Meesho, Ajio, etc. Each of these marketplaces has its own set of policies and charges, making it financially burdensome and complex to manage multiple accounts.

Here's where a revolutionary open network comes to the rescue. ONDC network operates as a unified network, liberating sellers from the constraints of platform-specific rules and excessive fees. You only require to register once on the government-backed open network, and all your products become discoverable to buyers across India.

No matter which seller app you use to list on ONDC network, your products are discoverable to all the buyers present on the network irrespective of the buyer app they use.

The democratic open network follows a decentralization approach where sellers can register on this unified platform through various ONDC- network-connected seller apps, while buyers can use any of the available buyer apps to search for and purchase products on the platform.

Why should I join the ONDC network?

If you want to boost your business revenues and expand your reach nationwide in the e-commerce landscape, joining  ONDC network is the perfect solution for you. Whether you lack experience in e-commerce or seek to improve your current online presence, the open network is an excellent enabler for sellers like you. 

When you register on the revolutionary open network using a compatible seller application like the Mystore Seller app, the visibility of your business is enhanced. The open network benefits both sellers and buyers, providing a host of advantages:

Advantages for the sellers

• Better visibility across multiple channels: When you list on ONDC network, your products are visible across various digital channels. It increases your chances of reaching potential customers and driving sales.
• Access to in-built logistics and delivery solutions: The new age open platform offers integrated logistics and delivery solutions. It helps in streamlining your order fulfillment process and ensures faster and more reliable deliveries to customers.
• Lower commission rates: Unlike traditional marketplaces, When you sell on ONDC network, you have to pay lower commission rates. The open network enables you to retain a higher portion of your earnings and improve your profitability.
• No contractual lock-ins, biased algorithms, and shady competition: ONDC network’s approach ensures that you are not tied down by restrictive contracts, and your products are not hindered by biased algorithms or unfair competition practices.
• 100% Transparency: ONDC network promotes transparency in its operations, providing sellers with clear insights into their performance, customer feedback, and market trends, empowering you to make data-driven decisions.

Advantages for the buyers

• More (and better) options: The democratic open network features a diverse range of sellers and products, offering buyers a wide selection of choices to find precisely what they need.
• Better pricing: When a seller starts selling on the ONDC network, they only need to pay a fraction of the commission amount compared to traditional e-commerce marketplaces like Amazon and Flipkart. Moreover, the upfront cost is minimal (Mystore charges zero upfront costs). Sellers pass the increased marginal profit to buyers by offering them improved pricing options.
• Faster delivery: With integrated logistics solutions and hyperlocal-first algorithm, open network facilitates faster and more efficient deliveries from local sellers, ensuring a seamless shopping experience for buyers.
• Shop from your trusted local sellers: ONDC network is designed to show local sellers first and encourages buyers to shop from local sellers they trust. This supports small businesses and fosters a sense of community.

Can you tell me how to register on the ONDC network?

Registering on the ONDC network is a hassle-free process with the Mystore Seller app ( Leading Indian marketplace connected to open network).  The revolutionary open network setup is intended to simplify online selling, especially for new users without any prior training or expertise in online sales. 

You can register and sell on ONDC network in just a few simple steps:

1. Submit your GSTIN and bank Information: Provide your GSTIN and relevant bank details for tax compliance and transactions.
2. Wait for your seller account to become active: Mystore seller app will verify your details, and once approved, your seller account will be active.
3. Upload your product catalog with images and descriptions: Showcase your products with high-quality images and detailed descriptions to create an appealing storefront.
4. Choose your preferred logistics and fulfillment partner: Select a logistics provider that aligns with your shipping needs for efficient order delivery.
5. Start receiving orders once your e-store goes live: Your e-store will be live on the ONDC network, and customers can start placing orders.
6. Manage Orders, track inventory, and receive payments using Mystore Seller App: Use the user-friendly seller app from Mystore to handle order processing, inventory tracking, and payment management.

By following these simple steps, you can seamlessly register and sell on ONDC network and tap into a vast market of online shoppers in India.

What's the payment procedure like with the ONDC network?

A feature-rich open network seller app (like the Mystore seller app) enables you to integrate multiple payment options for seamless transactions. Customers can choose their preferred mode of payment including card, e-wallet, and net banking. Once a transaction is completed, the corresponding amount will be credited to your linked bank account.

For merchants connected with the Mystore seller app, here's how the final payment will be credited into their seller account every Friday:

a) For non-returnable orders, the final settlement occurs every Friday based on delivery + 2 days.

For instance, if an item is sold on 6th August 2023, the final payment will be credited to your bank account on 11 August 2023 (Friday).

b) For returnable orders, the final settlement occurs every Friday based on delivery + returnable period + 2 days.

Hence, if the same item is sold on 6th August but with a 7-day return policy, then the final payment will be credited on 18th August 2023 (Friday).

Conclusion

The ONDC network  is all set to reshape the Indian e-commerce landscape. Sellers who are struggling to get online exposure can switch to the revolutionary open network easily and expand their visibility to pan-India.

The GOI-backed novel initiative is a true blessing for Indian sellers enabling them to  do business in an open, non-discriminatory environment. By registering on the ONDC network, sellers can compete with big marketers in the e-commerce industry.

Ready to sell on ONDC network?

Mystore is a leading Indian marketplace connected to the open network and is designed to make selling on the ONDC network seamless and hassle free for buyers across industries and business models. 

List on ONDC network with Mystore seller app now.