Open Network for Digital Commerce (ONDC), a public online network for merchants and customers, allows e-Commerce platforms to interconnect and interoperate.
About ONDC
- Nodal Ministry: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce.
- Launch: Established in 2022 as a non-profit Section-8 company under the Companies Act, 2013.
- Aim: To democratise the Indian e-commerce space.
- Founding Members: Quality Council of India and Protean eGov Technologies Limited.
- Working: ONDC uses open-source methods and protocols, independent of specific platforms, to create a level playing field for sellers, buyers, and MSMEs across India.
- Significance: It enhances price discovery and gives consumers access to a broader range of service providers.
- Need: Over 12 million sellers in India rely on selling or reselling, but only 0.125% used e-commerce.
- Key investors: SBI, ICICI Bank, NSE, etc.
Key components of ONDC
- Decentralized Architecture: ONDC does not own or operate e-commerce services, unlike traditional platforms. It acts as an enabler for interconnectivity.
- Open Protocols: Based on open standards, ONDC ensures that any seller or buyer platform adhering to these protocols can participate.
- Role Segregation: Defines roles such as Buyer Applications, Seller Applications, and Logistics Providers for clarity.