India’s e-commerce landscape is undergoing a massive transformation, and at the heart of this change is ONDC — Open Network for Digital Commerce. But what exactly is ONDC, and how does it compare to e-commerce giants like Amazon and Flipkart? Let’s break it down in simple terms to understand the shift and its potential impact on Indian businesses and consumers.
Understanding ONDC: India’s Open E-commerce Network
The ONDC is a government-backed initiative designed to democratize e-commerce in India. Instead of one company owning the entire buyer-seller ecosystem (like Amazon or Flipkart), ONDC aims to create a decentralized, open-source platform where any seller or buyer can connect across multiple platforms.
Why is ONDC being introduced?
The current e-commerce system in India is dominated by a few large players. While this provides convenience, it limits access for small businesses and local sellers. The ONDC platform is meant to level the playing field by:
- Breaking monopolies of large marketplaces
- Reducing commission fees for sellers
- Allowing better discoverability of products
- Encouraging digital inclusion of MSMEs and kirana stores
By making e-commerce infrastructure open and accessible, ONDC plans to unlock a more competitive and inclusive marketplace.
How ONDC Works: A Simple Analogy
Think of ONDC as the UPI of e-commerce. Just like UPI allows different banks and payment apps to talk to each other, ONDC allows sellers and buyers on different platforms to interact seamlessly.
Key Players in ONDC’s Ecosystem
There are three main participants:
- Seller-side apps – Help merchants list products (e.g., Paytm, SellerApp)
- Buyer-side apps – Where customers shop (e.g., PhonePe, Craftsvilla)
- Logistics and service providers – Handle shipping, payments, and more
A buyer using one app can purchase from a seller listed on another app, making the entire marketplace interoperable.
Impact on Amazon & Flipkart: A Real Disruption?
Amazon and Flipkart currently dominate Indian online shopping. But ONDC introduces a model that can disrupt their grip in several ways.
1. Reduced Seller Dependence on Marketplaces
Today, sellers rely heavily on Amazon or Flipkart to access online customers. These platforms charge high commissions (10%–35%) and enforce their own rules. ONDC changes this by offering a common platform where sellers can access customers without giving up control.
Result: Amazon and Flipkart may lose exclusive hold over seller networks, potentially reducing their market power.
2. Greater Visibility for Local Stores
Small retailers and kirana shops often struggle to compete on large marketplaces due to low visibility or lack of digital know-how. ONDC enables them to digitize with minimal cost and appear on multiple buyer apps, reaching customers they couldn’t reach before.
Result: Flipkart and Amazon’s product selection might no longer be a unique advantage.
3. Transparent Pricing and Logistics
Unlike traditional platforms, ONDC separates product listing from logistics and payments. This allows sellers to choose cheaper shipping or payment options, giving them better margins.
Result: ONDC can drive more price transparency and flexibility, putting pressure on Amazon/Flipkart to reduce charges and improve services.
Consumer Experience: Will Shopping Get Better?
From the buyer’s perspective, ONDC aims to create a unified shopping experience, regardless of the app used.
1. More Choices at Better Prices
Since ONDC allows access to thousands of small sellers across apps, buyers can enjoy more competitive prices and diverse products, especially local and regional offerings.
2. No Need for Multiple Accounts
Imagine buying groceries from a local store using PhonePe, while ordering clothes via Meesho — all powered by ONDC. There’s no need to switch apps, as everything is interconnected.
Result: A more open and seamless shopping experience, much like how UPI revolutionized digital payments.
Challenges ONDC Might Face
Despite its potential, ONDC’s success isn’t guaranteed. It still has to address a few practical concerns:
1. Adoption by Small Sellers
While ONDC supports small businesses, many lack the digital literacy or infrastructure to get started. Training, onboarding, and trust-building will be essential.
2. Quality Control & Returns
Amazon and Flipkart offer controlled environments with robust customer support, easy returns, and quality assurance. ONDC’s decentralized nature may struggle to ensure consistency across all apps and sellers.
3. User Experience Standards
Shopping on Amazon is simple and familiar. ONDC’s multi-app experience may feel fragmented if not standardized, especially during checkout, customer support, or dispute resolution.
What Does This Mean for Indian Businesses?
For Indian business owners — especially SMEs and D2C brands — ONDC is a game-changing opportunity. It gives more autonomy, better visibility, and access to a nationwide audience without high commission costs.
If adopted at scale, ONDC could empower lakhs of Indian sellers and help them compete with global giants. Businesses should consider preparing for ONDC by:
- Exploring compatible seller platforms (like Mystore, SellerApp)
- Setting up digital catalogs
- Training teams on open e-commerce infrastructure
Read Also : The Growth of E-Commerce in India: How Online Shopping is Shaping Retail
Final Thoughts: The Future of E-commerce in India
ONDC is still in its early phase, but it signals a bold step toward open, inclusive, and competitive online commerce in India. While it may not immediately dethrone Amazon or Flipkart, its impact will grow steadily as adoption increases and infrastructure matures.
For Indian consumers and sellers alike, the freedom to choose, compete, and thrive in a more democratic digital economy.
