What is the Open Network for Digital Commerce (ONDC)?

About Open Network for Digital Commerce (ONDC):

• It is an open-source network set up to enable buyers and sellers to transact with each other irrespective of the e-commerce platform on which either of them are registered.
• It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry.
• It comprises of buyer-side apps where consumers can place orders, seller-side apps that onboard merchants and display their listings, and logistics platforms that handle deliveries.
• Aim:
  • To promote open networks for all aspects of exchange of goods and services over digital or electronic networks. 
  • To create new opportunities, curb digital monopolies and by supporting micro, small and medium enterprises and small traders and help them get on online platforms.
  • It seeks to democratise digital or electronic commerce, moving it from a platform-centric model to an open-network.
• Benefits:
  • It offers small retailers an opportunity to provide their services, and goods to buyers across the country through an e-commerce system.
  • ONDC enables merchants to save their data to build credit history and reach consumers.
  • It is expected to digitise the entire value chain, promote inclusion of suppliers, derive efficiencies in logistics and enhance value for consumers.
  • ONDC protocols would standardize operations like cataloguing, inventory management, order management and order fulfilment.