{"id":3289,"date":"2024-05-01T12:52:11","date_gmt":"2024-05-01T12:52:11","guid":{"rendered":"https:\/\/www.khanglobalstudies.com\/blog\/?p=3289"},"modified":"2024-05-01T12:52:14","modified_gmt":"2024-05-01T12:52:14","slug":"what-is-ondc","status":"publish","type":"post","link":"https:\/\/www.khanglobalstudies.com\/blog\/what-is-ondc\/","title":{"rendered":"ONDC (Open Network for Digital Commerce): Overview & Benefits"},"content":{"rendered":"\n

Increasing internet usage and consumer demand led to the rapid growth of e-commerce shopping sites in India. Today, the market segment is dominated by a few players, leaving short sellers and traders with less exposure. To democratize the e-commerce sector and benefit the seller ecosystem in India, the government has launched the Open Network for Digital Commerce<\/a> (<\/strong>ONDC)<\/strong> initiative.<\/p>\n\n\n\n

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What is an Open Network for Digital Commerce (ONDC)?<\/strong><\/h2>\n\n\n\n

ONDC is a non-profit Section 8 company. Implementation of ONDC will help local shop owners across categories like food, mobile, grocery etc. to display their products\/services in search results of any app.<\/p>\n\n\n\n

The company was founded by the Department for Promotion of Industry and Internal Trade (DPIIT), Government of India, to enable easy access to technologies developed by large e-commerce companies to support small merchants and mom-and-pop stores. Furthermore, the ONDC initiative also aims to promote an open network for sellers to enable the exchange of goods and services over digital networks.<\/p>\n\n\n\n

Currently, ONDC has been launched in 5 cities including Bengaluru, Bhopal, Coimbatore, Delhi NCR and Shillong.<\/p>\n\n\n\n

What was the reason for the formation of ONDC?<\/strong><\/h3>\n\n\n\n

The Government of India launched the ONDC initiative to prevent the monopoly of big players in the e-commerce market and increase access to small merchants. Sellers will get access to a large number of buyers.<\/p>\n\n\n\n

With ONDC, the government aims to end predatory pricing (where products are offered at a lower price to eliminate competition and create a barrier to any new entry) in high-margin, high-value products. <\/p>\n\n\n\n

How does ONDC work?<\/strong><\/h3>\n\n\n\n

Any e-commerce enterprise can obtain membership in the network for free. So, here’s how ONDC works:<\/p>\n\n\n\n