The DPIIT is working on something cool called the Open Network for Digital Commerce (ONDC). It’s like a superhero for the digital market because it wants to stop big digital companies from taking over and make it easier for shops to join online stores. So, it’s like creating a fair playground for everyone in the online shopping world.
What is ONDC?
- ONDC is a government-backed platform that wants to make online shopping fairer and more open.
- Instead of being stuck on one platform (like Amazon), ONDC wants you to buy from one site (e.g., Amazon) and still be able to get stuff from a seller on another site (e.g., Flipkart).
- Currently, if you want to buy something, both the buyer and seller have to use the same app or platform (like Amazon).
- So, if you’re shopping on Amazon, you can only buy from sellers also on Amazon.
- ONDC is trying to change this. It’s like a big digital space where buyers and sellers from different platforms can connect.
- Now, you could be on Amazon but buy something from a seller on Flipkart, all thanks to ONDC.
- ONDC isn’t in it for the money. It’s a not-for-profit organization.
- It wants to create a network where all sorts of local online stores can be found and used by different apps.
Aim
- UPI changed how we make digital payments, and now ONDC wants to do something similar for online shopping.
- ONDC aims to make online shopping fairer by shifting away from big platforms like Amazon and Flipkart to a more open system.
- ONDC aims to make online shopping fairer by shifting away from big platforms like Amazon and Flipkart to a more open system.
- ONDC plans to make transactions happen on an open network, meaning it’s not tied to any specific platform. It’s like making online shopping a more level playing field for everyone.
Significance
Freedom for Everyone: On ONDC, buyers and sellers can connect easily, even if they usually stick to a specific online store. This is great news for smaller shops and newcomers, giving them a chance to shine.
A Challenge for Big Players: However, larger e-commerce companies might face issues if they have to follow ONDC rules. They’re used to their own systems, and adapting could be tricky.
Digital Transformation: ONDC aims to digitize everything, making operations standard and bringing in more suppliers. This should improve how things move from sellers to buyers, making it smoother for everyone.
Equal Opportunities: The platform is all about fair play. It wants to make sure anyone can take part, making e-commerce more open. You can find any seller or product using any app or platform you like, giving you more choices.
Inclusive and Accessible: ONDC wants to include as many people as possible. It’s designed to make e-commerce easy to use for everyone. You could buy anything, no matter the cost, making ONDC a truly open network for everyone.
Big Goals: In the next five years, ONDC plans to get 90 crore users and 12 lakh sellers on board. That means 730 crore more purchases could happen through the network. That’s a lot of buying and selling.
Challenges
- The local business will find it extremely challenging to compete with the discounts, sales and other lucrative offers, being offered by prominent e-commerce players which may result in local business being squeezed out of the network in the long run.
- The strategy paper is silent on the issues regarding liability on the network in case consumers faced issues regarding transactions, delivery of substandard products and service.
- There is also a lack of clarity on the applicability of the existing e-commerce laws to the network.
Way Forward
- ONDC (Open Network for Digital Commerce) builds trust with consumers by setting up strong systems to address their concerns and making sure there are clear rules for returns, refunds, and cancellations.
- It’s time for a big change – move away from a system where one company controls everything to a setup where ONDC supports collaboration and works with different systems that can all talk to each other.
- These rules should apply to everyone, not just specific companies, to make sure things are fair for everyone using the network.
