The Indian government launched the Open Network for Digital Commerce (ONDC) project in April 2020, with the goal of democratizing e-commerce. ONDC is an open-source e-commerce protocol developed by the Department of Promotion of Industry and Internal Trade (DPIIT) of the Ministry of Commerce. It allows small retailers and shops to sell their products or services directly to customers. ONDC works without the need for a third-party application, enabling buyers and sellers to interact with each other directly.
The platform provides a wide range of products across various categories, including food and beverage, beauty and personal care, home decor, electronics, and fashion. Customers can access ONDC through buyer applications such as Paytm, Meesho, Magicpin, and Pincode. The buyer application displays nearby local stores and retailers based on the customer's location, allowing them to explore prices and place an order.
ONDC allows small retailers and local businesses to compete with e-commerce giants like Amazon and Flipkart by making them discoverable online to customers, thus increasing their reach. ONDC also standardizes operations like order management, cataloguing, order fulfillment, and inventory management.
Commerce and Industry Minister Piyush Goyal said that ONDC will democratize e-commerce benefits for small retailers, the way UPI democratized payment systems. ONDC is an attempt to make e-commerce more inclusive and accessible for customers, allowing them to shop for products from their preferred local business or any other retailer.
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