The E-commerce sector is booming at a rapid pace in the country. With this evolving industry comes many challenges, including sky-rocketing transaction costs, user-friendliness, and lack of trust in online platforms. To overcome the challenges faced by the e-commerce sector, ample innovative solutions have come into the picture. One of the critical disadvantages of e-commerce platforms is that for some given product, there are only a few sellers that appear in the top search that creates the monopoly and takes most of the customers. This puts a bar on the sales for small business owners who can provide high-quality products. Apart from that, buyers on one platform can’t interact with sellers on different platforms. But, with the help of ONDC, all the buyers, sellers, and logistics can interact with each other under the same roof. Above all, buyers as well as sellers only need to register once rather than registering on all the different platforms.
One of the most reliable and optimum solutions initiated by the government is the Open Network for Digital Commerce (ONDC). ONDC was launched as a unified umbrella that will encompass all the key participants in the digital commerce sector. ONDC has a lot to cover and logistics play a predominant part in accelerating its growth. ONDC has also revolutionized the e-commerce ecosystem with the new launch of interoperable QR code. This QR code will act as a medium to connect various sellers with the prospect customers both online and offline. This article will offer a comprehensive guide to understanding all bits and pieces of the ONDC app and how it can revolutionize the e-commerce system.
What is ONDC?
ONDC is open, unbundled, and interoperable and is a great initiative set up by the Indian government in 2022. ONDC stands for Open Network for Digital Commerce and was introduced to standardize e-commerce for all suppliers across different spheres. With time, people have become more reliant on online shopping and there were only a few giants who were controlling this arena. To break this monopoly, ONDC has come into the picture to provide equal opportunities to all its participants. ONDC has incepted with the main aim of bringing 80% of traditional offline Kirana stores into the online space. ONDC is not only limited to kirana stores but there are various other spheres that extensively use the ONDC platform like insurance, food delivery, courier, packing and moving services, hardware stores, and much more.
Why did ONDC Come into the Picture?
Various reasons contributed to the launch of ONDC by the Indian government. In addition, various prominent ONDC apps have been launched to provide a seamless experience to buyers and sellers. Below are some of the reasons that sparked the importance of adopting ONDC platforms by some of the esteemed marketplaces:
1. Provide Equal Opportunities To All The Sellers
Whenever a buyer tries to search for some product on the online app, various ad campaigns run behind it which influences people’s choices. These campaigns often force the buyers to go for low-quality but costly products. To overcome this hurdle, ONDC has been introduced by the government that strictly puts a mark on using keywords like most recommended, best seller, etc. This will allow you to come across the most useful suggestions based on your search and location.
2. High Customer Satisfaction
With the ONDC app, customer satisfaction has increased substantially. ONDC platforms offer the privilege to all members to interact with each other whenever they have some confusion. This allows them to understand the clients in a better way. Apart from that, clients also develop trust with sellers. This creates great visibility for both ends.
Key Components of the ONDC Platform
ONDC platforms allow the buyers and sellers to connect under a single roof and provide impeccable services to cater to each other's needs. Merchants can register their seller apps on the ONDC platform and become the network participant by easily registering the app on the platform in a few easy steps. On the other hand, customers who want to shop through the ONDC, visit the buyer app of their choice and search for the preferred seller to complete their purchase. In this way, it becomes easy for the sellers and customers to interact with each other via the ONDC network. Below are the key components that collectively make the ONDC platform:
1. E-commerce registration section
All the e-commerce platforms can register themselves on this registration section. With this component, merchants can easily bring their business online for a global presence and more healthy competition. Also, the user experience will increase significantly with a great pool of options to choose from.
2. Product and Service catalogs
One of the major components of online presence is the availability of the online catalog. With this component, businesses can offer their entire product catalog online offering a great user-friendly experience for the users. All the buyers can conveniently and effectively go through those products and choose the best fit for them.
3. Central Consumer Database
ONDC apps centrally store consumer data in a single place which becomes very useful for future use. User data like preferences, personal details, and purchase history are stored in the database. Data privacy and security are maintained so that users can encounter a seamless shopping experience.
4. Secured Payment System
ONDC platforms have the privilege of advanced encryption and authentication protocols that offer a smooth and secure payment experience for consumers. This also ensures that consumers develop trust in the environment for initiating and processing payments.
5. Order Fulfillment Section
This section streamlines the processing of orders and manages order details, packaging, shipping, etc. It ensures that correct and real-time data is shared with the customers so that user experience is increased tenfold.
6. Feedback and Rating corner
Consumers can use this section to gather information about the user experience and app performance. This will further help the developers to work on the consumer feedback and offer a more streamlined and unified experience to the users.
Role of Logistics in ONDC
Logistics play a pivotal role in the ONDC ecosystem. Logistic companies have found a great boost in their performance with the introduction of ONDC platforms. As ONDC offers a seamless and unified experience for buyers and sellers, logistics companies can easily collaborate with small retailers offering a great boost to their performance. When logistics integrate with the ONDC, it shoos away the need to integrate with multiple platforms as all needs are catered under a single roof.
This integration of ONDC with logistics saves a lot of cost for both the buyers and sellers offering a two-way benefit. Various delivery apps offer booking logistics services for packing and moving goods without any hassle. You can get the vehicle to your doorsteps within 10 minutes if you ever want to shift or send some courier. ONDC platform plays a crucial role in offering several benefits to the logistics companies. Some of the major benefits are listed below:
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Flexibility
With the ONDC platforms, logistics companies can offer competitive prices to the customers. It opens the door of opportunities to the customers to go through the services of different logistic providers and choose the best fit for their needs.
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Impeccable Integration
Logistics companies can easily integrate their entire working system on the ONDC platform. All the operations, routes, and shipments from various sellers can be consolidated under one place with the ONDC system.
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Enhanced efficiency
By integrating logistics with the ONDC, operational efficiency of the logistics has boosted ten-folded. All the operations like inventory management, route optimization, cost savings, etc. have substantially improved with integration of logistic companies with ONDC platforms.
ONDC Network Services
ONDC network services allow the participants who are members of the platform to seamlessly manage their network. Some of the major network services offered are discussed below:
1. Registry
Registry is the network service that acts as a repository to keep track of all the participants who register themselves on ONDC.
2. Network Policies
There is an underlying set of rules and code of conduct that is expected from various network participants who join ONDC. The policies will cover key areas like registration, transaction, payment, etc. All the network policies opted by the ONDC are constructed in such a way that they allow a transparent and inclusive network.
3. Data Privacy Policies
Data privacy policies aim to protect the data of consumers so they can use the ONDC platform without any hesitation. The data policies are designed in compliance with the Information Technology Act 2000 so that transactions done on the platform only remain confined between the buyer and seller application. This ensures that ONDC will not store or view any transactional data.
How to Become an ONDC Network Participant?
It is easy to become an ONDC network participant and use the seamless pool of advantages that it has in store for the users. By joining the ONDC network, users can leverage the advantage of e-commerce and grow their business to a great scale. If your business can offer quality services then you are good to go as an ONDC network participant. There is no bar whether you are a small or large business owner, you can always go ahead and register your business on the ONDC app. Below are some of the easy steps that one can follow to become an ONDC network participant.
1. Sign up on the ONDC Portal
Firstly, you need to create your profile and sign up on the ONDC portal. Your profile will help the ONDC team understand your business role and support you with the further steps to accomplish your registration.
2. Explore webinars
You will come across a large number of community webinars on the ONDC platform. Once you attend these introductory sessions, you will come across all the basic details of the ONDC community so you can use it more effectively.
3. Select role and domain
There are various roles on the ONDC platform that a registering business can choose. The primary roles available on the platform include seller node, buyer node, and technology service provider. The domain selected on the platform will vary according to the products/services that are bought and sold on the app. So, the business registering on the platform can choose it accordingly.
4. Integration
After registering the business on the ONDC platform, it is very important to check if everything is working as expected or not. To achieve this, API is integrated with the ONDC protocols and complies with the relevant policies. This will ensure seamless transaction flows on the network.
5. Go-Live
Go-live is the last step where the business passes all the functional testing and qualifies to go live in the production environment. This implies that the business is good to go with its e-commerce operations along with other network participants on the ONDC platform.
How to Order from ONDC?
Shopping from ONDC is quite seamless and offers you a bundle of options to choose from. You can follow the below list of steps to easily order from the ONDC app.
1. Choose the category
Firstly, you need to be sure of the category of the product that you want to shop. Once you are sure about it, you can choose the category of your interest and proceed with the next steps.
2. Pick a buyer
Every category has a particular set of buyer apps that cater to your specific needs. You can choose from the specific list of buyer apps that can help you shop from the sellers available under your chosen category.
3. Browse and place the order
You can choose the apt product as per your requirements and place the order on the ONDC platform.
4. Get order confirmation
Once you have placed your order successfully on the ONDC platform, you will receive the order confirmation. The confirmation notifications will come from different companies as various parties join hands-in-hand to fulfill your order.
How to use ONDC to Order Food?
ONDC food ordering is very common in most of the metro cities. People mostly use the ONDC food app to order food. ONDC Bangalore, ONDC Chennai, ONDC Gurgaon, etc. are some of the key places where ONDC has firmed its roots. The best part is that it is very easy to order food via the ONDC app and the below steps will even make this task simpler.
Order food from the ONDC website
1. Browse to the home page of the ONDC website
2. Go to the option “Shop on ONDC”
3. There will be multiple buyer applications that will come on your screen with a “Shop Now” option
4. Choose the platform of your choice and click on “Shop Now”
5. Select your location and place the order
6. Once confirmed, pay for your order and you are good to go
Order food from the ONDC App
Different ONDC food apps will have one or two additional or fewer steps to follow while ordering the food but the main steps will remain the same.
1. Open the app of your choice and search for ONDC
2. Once you get the ONDC, go for the ONDC store option and that will open up the restaurants and food items available for order
3. You can browse from the list of options and select your order
4. Choose the location of your delivery and proceed to the checkout page
5. Pay for the order with any available payment options and your food order is successfully placed
Final Thoughts
ONDC platform has a lot of potential benefits and is one of the most revolutionary steps taken by the Indian government. ONDC will not only help small retail business owners but will also help large-scale businesses to boost their business growth. Apart from that, ONDC platforms have given a unified stage for all the e-commerce platforms to come together and standardize the user experience with better options and facilities. On top of everything, it’s very important to consider user feedback to continuously improve the user experience and they can build more trust with the platform. ONDC has come a long way to not only provide service under one category but various categories like food ordering, courier services, packing and moving services, and much more. So, there is a bright future for the e-commerce industry that is waiting to revolutionize the country.
