What is ONDC? Whenever it comes to online shopping, the names of big companies like Amazon, Flipkart, Myntra etc. come to our mind. The reason for this is the large scale operation of these companies, easy shopping experience, time saving and huge amount of advertisement. Advertisement plays a big role for these companies. Today, we have become crazy about these companies just by looking at their advertisements. The Government of India has launched the ONDC platform to revolutionize the field of e-commerce and end the dominance of these big companies. We will tell you in detail in this article why this platform was needed and how it is beneficial for sellers, buyers and delivery agents and what loss it will cause to big e-commerce companies.
What is ONDC?
ONDC stands for Open Network for Digital Commerce. That means a network where even the smallest businessmen of India can sell their goods digitally and in return you will have to pay very low commission. This platform works to connect sellers, buyers and delivery partners. ONDC is a non-profit organization whose aim is to strengthen and protect small businessmen of India from the dominance of Amazon and Flipkart. Registration in ONDC is absolutely free, however some platform charge is taken from you on the order which is less than Amazon and Flipkart.
Why was there a need?
If you are wondering why the government needed the ONDC platform in the presence of Amazon and Flipkart, then there are many reasons for it. One thing is that India's e-commerce market is continuously growing and by 2030, one third of India's total population is expected to do online shopping. This will benefit big foreign companies like Amazon and Flipkart and they will take all the profits with them. With time, as this sector grows, profits will increase and this can again prove dangerous for the country's economy. Apart from this, due to Amazon and Flipkart, small businessmen of India are facing problems in working because nowadays people are buying goods online and due to this, offline shopkeepers are facing losses. Even if the shopkeeper connects with these companies online, a huge commission is charged from them.
Due to the data of people's test and demand, these companies have also started selling their own products. Besides, these products are shown at the top by the companies and the rating is also in the hands of the companies. This makes a difference in the cost of the goods because common sellers buy the goods under a chain whereas e-commerce companies sell the goods directly, which reduces the cost of the product. However, the Indian government has banned the inventory model for e-commerce companies. But these companies somehow accomplish their work and earn more profits.
Amazon and Flipkart will get competition from ONDC
With the advent of ONDC platform, you no longer need to have separate shopping apps. You can access ONDC from the same website or UPI app (Paytm). From here you can see any item you want to buy. In ONDC, you will see the products and rates of small shopkeepers including Amazon, Flipkart, after comparing everything, you will be able to buy them directly from here. The advantage of this platform is that even a small shopkeeper can sell his goods to a customer sitting far away. Registration in ONDC is absolutely free. Compared to Amazon and Flipkart, here you will get reduction in the price of every product and if the item is being manufactured near your home, then its delivery will also be fast. ONDC is being described as a revolution like UPI which can prove to be a big game changer in the future.