what is ondc , Advantages of using ONDC, How does ONDC network work,
In the world of the internet, people love to buy things from online shopping sites instead of going to market in their local areas. There are many shopping sites like Amazon, Flipkart, Myntra, Meesho and other e-commerce websites available which fulfills the demand of purchasing products and delivering them at the doorstep of customers’ homes.
These days, Amazon and Flipkart are fully capable and are doing great business in the e-commerce market. Even market retailers are not happy with these growing e-commerce companies. Now, to challenge these companies, the central government has come forward with a new policy that is ONDC or Open Network for Digital Commerce.
We will discuss more about ONDC in this post. What is ONDC? Why does the central government start this? How will this network help small marketers in their business? Let’s start this:
Before starting with ONDC, let’s first learn about open source and e-commerce. Any software or process that is open or independent for all people to use, re-distribute or modify as per their need is called open source software.
For instance, Google’s Android operating system is open-source. That’s why many other companies modify it’s code for their own application use. On the other hand, Apple’s operating system is a closed source, that is legally it cannot be modified from an external source.
Now let’s talk about e-commerce. It is a business model which helps many people and companies to buy as well as purchase things from the internet. A tremendous use of smartphones and 4g networks helps the e-commerce market to grow their business upto 4 billion dollars.
What is ONDC and what is its purpose?
is ondc open network ? yes Friends, let’s get back to ONDC. Its full form is Open Network for Digital Commerce. It is an open protocol based network for all users.
This program is launched by the central government’s Ministry of Commerce and Industry under the Department of Promotion and Internal Trade. It is to encourage trading of goods and services through an electronic network which will be used by all online retail sellers. Also it helps in eliminating the digital monopoly from trading of goods and services.
Why does the government want to end monopoly of e-commerce companies?
Now let’s tell you why the government is ending the digital monopoly of e-commerce companies and why the e-commerce retailers are opposing it?
The main reason behind this is that there are many complaints coming from locals that these big e-commerce companies are misusing their growing impact. They give heavy discounts to get inappropriate profits.
What will be the advantages of using ONDC?
Friends, it is being said that this ONDC will help all small retailers and will end the growing monopoly of big e-commerce companies in near future.
Central government has taken this step and launched this platform of ONDC to help local retailers and also challenge the businesses of Amazon and Flipkart. It is believed that businessman and Co-founder or Non-executive Chairman of Infosys Mr. Nandan Nilekani plays an important role in the startup of this ONDC business.
He is one of the members of a nine member advisory council organized by the central government who gives necessary measures and advice to the government about how to use and launch this open source platform. Other than him, former head of Mckinsey Mr. Adil Zainulbhai and CEO of National Health Authority or NHA Mr. R.S Sharma are also part of the advisory council.
How does ONDC network work?
It is an open-source network enabled application that reaches more and more people in the local market and helps them in the form of various segments like grocery, food order and delivery, hotel booking and traveling. Customers are even allowed to use an integrated payment system that is UPI to make payments on it.
I guess you all are aware of the fact that Amazon and Flipkart contribute about 80% in e-retail market business.
In how many cities will this network be launched first?
In the early stages of launch, this network was started in five cities of our country as a pilot project. The cities are Delhi-NCR, Bangalore, Bhopal, Shillong, Coimbatore. The central government has taken care of the geographical awareness while launching this network.
All companies have their trader base in all of these 5 cities. Based on its experience so far, it will be easy to understand the difficulties and specifics of trading of goods. ONDC will be launched in other cities and states of the country if the pilot project is a greater success in its first stage.
Who are facing the big problems with these e-commerce companies?
It can be easily understood that the small vendors and shop merchants are facing a big issue with these e-commerce companies. They have constant fear that companies like amazon or flipkart will vanish their business in the coming future. open network for digital commerce
All big companies have options of discounts and home-delivery which attracts the customers more and more towards them. That is why 80% of the e-market is seized by these companies. If these companies are not challenged by any other business platform then it will create a huge problem for local markets.
Even the departmental store culture is affecting shopkeepers’ businesses. All these are the factors which constrained the government to establish their own ecommerce ecosystem.
How will small merchants get help from ONDC e-commerce platform?
Network for digital commerce ondc launched by the government will help small vendors like food stalls to sell their products online. Customers can order and pay online to those merchants. It will be a complete not for profit system by the government.
That is they will not run after profit in-fact the government will focus more on providing more and more facilities. The biggest and successful example launched by the government is the UPI facility that was started back in 2016. Although it will also be a challenge for the government to fulfill all needs of the IT process for small merchants.
The government takes suggestions and advice from the top experts of this field and even this project is running under the full consideration of those experts.
IMPORTANT FAQS ON ONDC
What is the full form of ONDC?
ONDC is an Open Network for Digital Commerce.
What is ONDC?
ONDC is an open network started by the central government to provide an open platform and facility for the sale and purchase of goods.
What is the purpose of ONDC?
The main purpose for ONDC is to help small merchants in their business and ending the digital monopoly of big e-commerce companies.
Why does the government want to end monopoly of e-commerce companies?
Because there are many complaints that arise from the local market about inappropriate profits made by these e-commerce companies.
Which companies have control of the e-commerce market these days?
Nowadays, 80% of contribution to e-commerce business is solely maintained by Amazon and flipkart. The other companies like Myntra, Meesho, snapdeal are also stepping forward in this race which provides all kinds of products to their customer and home-deliver them too.
In how many cities this ONDC will be launched in its first phase?
Total of 5 cities were selected for the first phase. The cities are Delhi-NCR, Bangalore, Shillong, Bhopal and Coimbatore.
Is ONDC launched as a pilot project in the first phase?
Yes, for now it is a pilot project launched in 5 cities only.
Which ministry of government is responsible for this project?
This program is the responsibility of the central government’s Ministry of Commerce and Industry under the Department of Promotion and Internal Trade.
How many members are present in the advisory council of this project?
A total of 9 members are included in the advisory council which will provide all necessary suggestions and advice for this project.
When will ONDC be launched nation-wide?
The central government is monitoring the growth rate of pilot project first and only the success of pilot project, the government will launch ONDC nation-wide.