ONDC: Govt’s e-comm net in talks with companies

What is the News?

The government has said that a small-scale implementation of the Open Network for Digital Commerce(ONDC) will be rolled out across two cities to see how the technology-enabled infrastructure works before it is officially launched.

What is ONDC?

ONDC is basically a Unified Payments Interface(UPI) equivalent but for the e-commerce space. It aims to promote open networks for all aspects of the exchange of goods and services over digital or electronic networks.

Through this, consumers can potentially discover any seller, product or service by using any ONDC compatible application or platform, thus increasing freedom of choice for consumers.

The platform will also help in reducing the cost of doing business, benefit small, traditional retailers while curbing digital monopolies. 

How is the ONDC idea being taken forward?

Those developing ONDC have started making presentations to e-commerce players and logistics companies, who would be the main actors. 

The pitch to them is that the e-commerce players can focus on the buyers or consumers, without having to focus on sellers. With more sellers, from kiranas to other retailers and service providers on board, the e-tailers will be able to use the platform to increase choice, transparency and trust of consumers.

The sellers can also enter into arrangements with delivery partners and logistics players to move away from platforms such as Amazon or Flipkart and sell directly to consumers through the platform.

What are the steps that have been taken to develop ONDC?

The government has set up a nine-member advisory council to suggest the steps. 

One of the steps that have already been taken, which is the registration of a non-profit private organization called ONDC Ltd. This has been registered with the Ministry of Corporate Affairs.

Source: This post is based on the articles

–  “ONDC: Govt’s e-comm net in talks with companies” published in TOI on 15th January 2022.

–  “Govt to pilot-launch e-commerce network in two cities in April” published in Business Standard on 15th January 2022.