Can India build a digital commerce model beyond Big Tech?
The digital commerce landscape in India has been dominated by a few giant players, making it challenging for small and medium-sized businesses to compete. However, with the launch of the Open Network for Digital Commerce (ONDC), India is taking a bold step towards creating a more inclusive and equitable digital commerce ecosystem. In this blog post, we will explore what ONDC is, its significance, and what it means for the future of digital commerce in India.
What is ONDC?
ONDC is an open-source, shared infrastructure that aims to unbundle commerce by providing a platform for multiple players to connect and transact with each other. Unlike traditional marketplaces, ONDC is not a centralized platform that controls the entire commerce process. Instead, it provides a standardized set of APIs and protocols that enable different players to connect and interact with each other seamlessly.
Imagine a scenario where a small e-commerce seller can list their products on multiple platforms, including those of their competitors, without having to create separate accounts or negotiate individual contracts. This is precisely what ONDC enables. By providing open access to multiple platforms, ONDC breaks the monopoly of large aggregators and empowers every player, regardless of their size or resources, to participate in the digital commerce ecosystem.
How does ONDC work?
ONDC works by creating a network of connected platforms, each of which can act as a hub for various commerce activities. These platforms can be owned by different players, including e-commerce companies, payment gateways, logistics providers, and even governments. Each platform can choose to connect with other platforms and share their inventory, logistics, and payment capabilities, creating a seamless experience for consumers.
For instance, a consumer can browse products on a platform like Flipkart, but when they make a purchase, the order can be fulfilled by a logistics provider connected to the platform. The payment can be processed by a payment gateway, and the product can be sourced from a seller who is also connected to the platform. This way, ONDC enables a frictionless commerce experience that is not limited by the boundaries of individual platforms.
What are the benefits of ONDC?
The benefits of ONDC are numerous and far-reaching. Some of the key advantages include:
- Increased competition: By providing a level playing field for all players, ONDC promotes competition and innovation in the digital commerce space. This can lead to better products, services, and prices for consumers.
- Reduced costs: ONDC eliminates the need for individual contracts and negotiations between sellers and platforms, reducing costs for both parties.
- Improved efficiency: With ONDC, commerce activities can be automated and streamlined, reducing the need for manual intervention and increasing efficiency.
- Increased accessibility: ONDC provides an equal platform for all players, including small and medium-sized businesses, to participate in the digital commerce ecosystem.
What does the future hold for ONDC?
The future of ONDC is bright, with many stakeholders already coming on board. The Indian government has announced plans to invest heavily in ONDC, and several e-commerce companies, including Flipkart and Amazon, have already expressed interest in participating in the network.
As ONDC grows, it is likely to have a significant impact on the digital commerce landscape in India. It can help to create a more inclusive and equitable ecosystem that empowers every player, regardless of their size or resources, to participate in the digital commerce space.
Conclusion
ONDC is a game-changer for the digital commerce landscape in India. By providing a shared infrastructure that enables multiple players to connect and transact with each other, ONDC has the potential to break the monopoly of large aggregators and empower every player to participate in the digital commerce ecosystem.
As India continues to grow and develop its digital commerce capabilities, ONDC is likely to play a key role in shaping the future of the industry. With its focus on interoperability and open access, ONDC is a model that can be replicated globally, and its impact on the digital commerce landscape will be felt for years to come.
Source:
https://www.growthjockey.com/blogs/india-s-strategy-for-reinventing-digital-commerce
