Open Network for Digital Commerce (ONDC)

Open Network for Digital Commerce (ONDC) Latest News

The Archaeological Survey of India (ASI) recently enabled online ticket booking for “over 170 centrally protected monuments and museums” on the Open Network for Digital Commerce (ONDC), seeking to expand digital access.

About Open Network for Digital Commerce (ONDC)

• It is a transformative initiative by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India, aimed at democratizing digital commerce. 
• Launched in April 2022, ONDC aims at promoting open networks for all aspects of the exchange of goods and services over digital or electronic networks. 
• ONDC represents a step toward digital commerce democratization, shifting it from a platform-centric model—where a few e-commerce giants dominate the market—to an open, interoperable platform where buyers and sellers can interact regardless of the platforms they’re using. 
• ONDC is based on open-sourced methodology, using open specifications and open network protocols independent of any specific e-commerce platform. 
• It envisions creating a level playing field for sellers, buyers, and service providers across India, particularly small and medium enterprises (MSMEs). 
• The ONDC initiative has several key objectives:
  • Democratization of Commerce: Break the dominance of large e-commerce platforms by enabling interoperability across networks.
  • Inclusivity: Empower small businesses, retailers, and local artisans to access the digital marketplace.
  • Cost Efficiency: Lower the cost of customer acquisition and transaction processing for sellers.
  • Market Expansion: Bridge regional and linguistic gaps, bringing untapped markets into the fold of digital commerce.
  • Customer Empowerment: Increase options for buyers by providing access to a broader array of sellers.
• It will enable local commerce across segments, such as mobility, grocery, food order and delivery, hotel booking and travel, among others, to be discovered and engaged by any network-enabled application.
• It comprises buyer-side apps where consumers can place orders, seller-side apps that onboard merchants and display their listings, and logistics platforms that handle deliveries.
• Benefits:
  • It offers small retailers an opportunity to provide their services, and goods to buyers across the country through an e-commerce system.
  • ONDC enables merchants to save their data to build credit history and reach consumers.
  • It is expected to digitise the entire value chain, promote inclusion of suppliers, derive efficiencies in logistics, and enhance value for consumers.
  • ONDC protocols would standardize operations like cataloguing, inventory management, order management, and order fulfilment.

Source: ET

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