Currently, digital markets are closed and platform-centric wherein buyers and sellers need to be on the same platform to carry out a transaction. The current model of e-commerce stifles innovation, creates significant barriers to entry for new players, and creates a gap between online demand and the local retail ecosystem. As a result participation in e-commerce is well below its potential and has a tremendous opportunity to grow manifold.
ONDC, on the other hand, does not require that buyer and seller must use the same platform/application to do a business transaction. Instead, it is a network-centric model where, so long as platforms/applications are connected to this open network, buyers and sellers can transact irrespective of the platforms/applications they use. Its like the “UPI of e-commerce”.
Existing Platform-Centric Model
Here, buyers and sellers must use the same platform/application to do a business transaction
ONDC’s Network-Centric Model
Buyers will be able to access all services currently provided by various sellers on different platforms, through a common network.
What ONDC is:
- An open network
- Eliminates the need for a central intermediary
- An enabler for e-commerce expansion
- An enabler for broad-based innovation
- Market and Community-led initiative
What ONDC is NOT:
- An application or a platform
- A central intermediary
- A medium to help digitize businesses
- A regulator