Everything you wanted to know about Open Network for Digital Commerce Protocol (ONDC Network) in 2024

The government-backed ONDC network has been making waves since the launch of its pilot phase in Sep 2022.  Due to its pan-India accessibility, democratic set up, and promising features, buyers and sellers are adopting this new ecommerce approach of Open Network for Digital Commerce protocol.

Till now, more than 2.3 lakh merchants and service providers from various categories have on-boarded the ONDC network, contributing to record transactions ( a record 1,60,000 transactions on special days) on the ONDC network daily. (Source: PIB India, Outlook )

The revolutionary ONDC network plans to bring 3 crore sellers and 30 crore buyers on the network by the end of 2024. (Source: Wikipedia)

As the ONDC network is proving to be a game-changer in the Indian e-commerce landscape,  it’s high time to know everything about ONDC, for both sellers and buyers.

Eager to know everything about the ONDC network in 2024? 

Stay tuned.

In this blog, we will explore everything about the ONDC network or the Open Network for Digital Commerce protocol, its goal, benefits,  current state, and what the future holds for this transformational technology in 2024.

Let’s dive deep into the blog. 

Understanding the ONDC network-  What is it and what we can expect from it in 2024  

The ONDC network is an innovative, non-profit initiative to provide every scale and size of business, an equal opportunity to expand their business in digital space. Unlike platform-centric marketplaces, it is a network,  based on open protocol that provides digital solutions for all businesses. Whether they are small businesses, SMEs, FPOs, social sector sellers, manufacturers, artisans, craftsmen, or big enterprises, all can join the ONDC network to sell digitally and reach new buyer segments across the country. 

The ONDC network provides complete digital solutions to merchants by offering them on-network logistics partners, tech service providers, and payment gateways. 

By bringing pan-India sellers on a single network, the Open Network for Digital Commerce protocol serves as one stop shop for buyers. By using any ONDC network buyer app like the Mystore Buyer app, buyers can easily connect to registered sellers, explore their products, and buy in a few easy steps. 

ONDC Network Milestones: Statistics and Progress

• 3,0000-4,0000 sellers every week onboard the ONDC network 
• 1.2 million orders have been placed on the ONDC network during the festive sale
• 2.5 lakh will be the daily transactions done on the ONDC network by the end of FY24 
• 3000+ FPOs have registered on the ONDC network through various seller network participants
• 400+ Self-Help Groups (SHGs), micro-entrepreneurs, and social sector enterprises have onboarded the network with the aid of SIDBI

(Source: The Hindu business line, PIB Gov)

The data says it all!

The ONDC network has witnessed substantial growth and development. With an increasing number of participants joining this democratic ecosystem, the ONDC network is all set to reach new heights in 2024. 

Goals and objectives

With the main aim of bringing digitization for all, the ONDC network makes it possible for pan-India sellers to come to mainstream ecommerce, establish their business online, and unlock new growth opportunities. 

Here are the key objectives of the ONDC network and in 2024, we can see significant growth toward achieving these goals.

• Curbing the digital monopoly of giant players and increasing the presence of small and medium enterprises and small traders
• Completely democratise the Indian ecommerce environment from a platform-centric model to an Open network model
• Create a level playing field for small and micro businesses, SMEs, and enterprise brands
• Empower offline merchants to go digital by eliminating unfair trade practices
• Protect consumers' data with confidentially and privacy
• Establish a buyer segment for small and micro-enterprises
• Digitize the entire supply chain system 

How the ONDC network works for buyers and sellers

Just like UPI does for payments, the ONDC network works to provide smooth and interoperable online transactions. The ONDC network provides open protocols that provide seamless interaction between all the market participants, including Buyer Network Participants, Seller Network Participants, Technology Service Providers, and Gateways.

The Open Network for Digital Commerce protocol uses a set of APIs, that enable merchants to integrate their business on the ONDC network and access data about various aspects of customers, products, and prices to make informed decisions. 

Unlike traditional marketplaces, where sellers are restricted to registering on a specific platform, with the ONDC network, sellers can integrate their business into any ONDC network seller app (like the Mystore seller app) and increase the discoverability of their products to pan-India buyers. By registering on the ONDC network, sellers can seamlessly automate various business aspects like inventory management, catalogue uploading, cart management, order fulfillment, etc. 

Buyers can also explore the various services and product catalogues listed on the ONDC network using a compatible buyer application, like the Mystore buyer app. 

This is the beauty of the ONDC network. Any seller can increase their product discoverability to pan India buyers using any seller app, and buyers can discover the products listed on the ONDC network using any buyer app. 

How the ONDC network will change the ecommerce dynamics in 2024

By leveling the ecommerce field, the ONDC network provides an opportunity for every scale and size of business to expand their digital market and tap into the new customer base pan India. 

Here are some of the ways, the government-backed Open Network for Digital Commerce protocol, will reshape the ecommerce ecosystem in India:

Customized ecommerce experience

The ONDC network enables sellers to manage their product catalogs, streamline inventory and supply chain and manage order fulfillment with the support of on-network logistic partners. These standardized solutions enable sellers to offer customized ecommerce experiences to buyers. Moreover, by selling on the ONDC network buyers get access to a host of customer data, including buyer preferences and buying behavior. Sellers can use this data to provide personalized shopping experiences to buyers. 

Access to pan-India sellers

The ONDC network enables buyers to interact with multiple sellers across the country using a single compatible buyer app ( like say the multilingual Mystore buyer app). This helps buyers explore a wide variety of products and services listed on the ONDC network and connect to sellers directly to buy their desired items.

Aside from this, the ONDC network algorithm prioritises hyperlocal commerce. It means whenever a buyer searches for any product on the ONDC network, the sellers close to their vicinity will appear on the top followed by sellers selling that particular product across the country.

Buyers are free to buy on ONDC network from any seller as per their preferences and budget using any buyer app like Mystore buyer app, Magicpin, Paytm, PinCode, Craftsvilla, etc

Secure payment and data privacy

Payment and data security are the major concerns in digital commerce which are addressed by the new-age ONDC network. The ONDC network is built on blockchain technology which reduces fraud and risk of disputes and provides a secure protol for busiensses.  This not only secures the customer data and payment done on the ONDC network but also makes it a hassle-free and quick process. 

Enhanced customer experience

The ONDC network delivers an improved shopping experience to buyers, as all the registered sellers are approved with the ONDC network verification process. Apart from this, the ONDC network provides secure and flexible payment gateways, a streamlined supply chain, and robust order fulfilment. These promising ONDC network features provide a smooth, hassle-free experience for both buyers and sellers.

Benefits of the ONDC network for sellers in 2024

The ONDC network offers a host of benefits for sellers to unlock unparalleled opportunities and widen their customer base.

Here are the benefits of the ONDC network for sellers:

Easy onboarding process

The ONDC network offers an easy onboarding process for sellers to list their products. This will eliminate the need to spend a huge amount of money and time on website development. It also eliminates the need to list the products on the platform-centric marketplaces on hefty subscription fees. On the ONDC network, the sellers just need to register using a compatible seller app like Mystore and start listing their products.

Increased visibility of the products

The ONDC network provides an opportunity for sellers to showcase their products to a larger audience. This increased visibility can lead to increased customer base and more sales opportunities. Unlike traditional marketplaces, where product visibility is limited to a specific platform, on the ONDC network, sellers can list their products on any ONDC network-connected seller app and their products are discoverable to all the buyer apps.

Low commissions

The ONDC network charges a fraction of the commission per order as compared to the popular marketplaces. Aside from this, the sellers do not have to pay any annual or monthly subscription fees on the ONDC network to get started. It increases the profitability of sellers and empowers them (especially small and medium size businesses) to come up with new ideas and strategies to maximise their sales online without any money-related stress.

On-network delivery partners

The ONDC network on-network delivery partners streamline the order process and ensure seamless delivery. This on-network logistic integration leads to cost-effective and faster shipping solutions and enhances the end-to-end experience for both sellers and buyers. 

Flexibility to do business on their terms

The ONDC network enables sellers to manage their business on their own terms. Sellers can set their own prices and discounts for products, choose delivery options, and manage inventory in a way that aligns with their business strategy. This flexibility empowers sellers to tailor their approach based on their unique needs and market dynamics. 

Easy access to customer data

Sellers on the ONDC network can get access to customer data which includes buying behaviour, preferences, and other insights. Such customer data is crucial for sellers to understand their customer base, refine marketing strategies, and improve the overall customer experience.

Transfer of reputation

The ONDC network facilitates the transfer of reputation for sellers. Whenever a seller switches from one seller app to another, they carry the reputation and trust they built on the previous app. This transfer of reputation can be a powerful asset for sellers to build credibility and attract more customers.

The ONDC network in 2024 not only simplifies the selling process for businesses but also provides a range of benefits to empower sellers to thrive in the dynamic e-commerce landscape.

Benefits of the ONDC network for buyers in 2024

The ONDC network brings together sellers from industries on a single platform and enables buyers to explore and buy their products at competitive pricing.

Here are the major benefits of the ONDC network for buyers in 2024:  

Find diverse product categories on one platform

The ONDC network enables buyers to explore products from various categories. On the ONDC network connected Mystore Buyer app, buyers can discover products from categories like Food and beverages, groceries, beauty & personal care, electronics, automotive, health & wellness, home decor, fashion, etc. This eliminates the need to visit multiple apps and websites to find different products.

Connectivity to pan-India sellers

On the ONDC network, buyers can easily connect to pan-India sellers to buy anything. This broadens the product availability for buyers and enables them to access products from sellers located in different regions, which were otherwise impossible to access. This increased connectivity increases the product options for buyers. 

Get products at low costs

The Open Network for Digital Commerce protocol offers products at competitive and affordable prices for buyers. The ONDC network charges low commissions and provides efficient logistics to sellers, which increases the profit of sellers. Sellers pass on these profits to buyers and provide them with products at much lower costs as compared to traditional marketplaces. 

Flexible payment from various payment gateways

The ONDC network supports flexible payment options through various payment gateways. This flexibility allows buyers to pay in their preferred payment mode which includes card, digital wallet, or net banking. These flexible payment options enhance the overall shopping experience for buyers.

Faster delivery from hyperlocal sellers

The ONDC network prioritises hyperlocal selling which leads to more efficient and faster delivery of products. Buyers located in various regions can benefit from quicker delivery when buying from nearby hyperlocal sellers. 

The ONDC Network in 2024 will revolutionize the buyer experience with multiple benefits and will be a preferred choice for efficient and cost-effective e-commerce transactions.

Why enterprise businesses in India should join the ONDC network

The ONDC network provides additional sales channels for enterprise companies to unlock new growth opportunities, onboard their seller distributors, increase their business partners, and expand their customer base.

Here are the 7 compelling reasons for enterprise businesses in India to join the ONDC network:

Integrated digital solutions

The ONDC network provides integrated digital solutions for enterprise companies to establish their business online and increase their customer base across the country. Selling on the ONDC network is easy for enterprise companies as it does not require a long development and testing process. 

Using the ONDC network connected Mystore seller app’s enterprise ecommerce solutions, enterprise businesses can seamlessly establish their business online, onboard their distributors, and increase their reach to pan India customers.

Increased visibility and discoverability

Joining the ONDC network enables enterprise companies to increase their product visibility and discoverability to pan-India customers. 

Enterprise businesses can enhance the chances of attracting new customers and increasing the visibility of their products across the open network just by registering on any one of their preferred enterprise seller apps for example the Mystore seller app.

Freedom to choose their own business rules

When enterprise businesses sell on ONDC network, they have the freedom to choose their own business rules. Enterprise businesses can set their product pricing, discounts, shipping charges, etc, and leverage customer data to make informed business decisions. 

Multiple sales channels 

The ONDC network offers enterprise businesses the advantage of accessing multiple sales channels through a single platform. Using the Mystore Seller app for the ONDC network, enterprise companies can easily take their business to multiple sales channels through the Mystore app, website, and PWA. 

Additionally, Mystore provides a hassle-free channel integration solution for businesses on  Amazon, WooCommerce, Shopify, and Magento. Using Mystore’s channel integration feature, enterprises can easily integrate their diverse product catalogues with the ONDC network add an additional sales channels to their brand, and enhance their brand visibility across all the buyer apps. 

Lower Customer Acquisition Costs

The ONDC network through its network participants provides cost-effective enterprise ecommerce solutions. When an enterprise seller registers their business on the ONDC network, their business will be visible and discoverable by buyers across different buyer apps. It increases the traffic on your business and subsequently increases the chances of more conversion. 

Also, the ONDC network and its NPs like the Mystore Seller app frequently run several promotional activities where they promote brands on different Social Media platforms. This will further increase the visibility of brands across various channels. 

Thus, with the ONDC network enterprises can gain more customers without investing money on ads and promotions. 

On-network logistic partners

ONDC network offers on-network logistic partners to help streamline the supply chain for enterprise businesses. The availability of multiple logistics partners, ensures reliable and efficient logistics, leading to faster and more cost-effective delivery solutions for businesses and improving overall customer satisfaction.

Enterprise businesses selling via Mystore can choose from 20+ on-network hyperlocal, intercity, and intra-city logistics providers or can use a combination of on-network and off-network logistic partners for hassle-free and seamless order fulfillment. 

B2B enterprise ecommerce solutions

Each B2B enterprise has its own requirements and needs a tailored solution which might take a lot of time to develop, test, deploy, and be ready for use.

With Mystore's ONDC network enterprise ecommerce solutions, B2B enterprises can digitize their sales and streamline their process by onboarding their distributor retailer networks. 

How Mystore provides advanced selling and buying solutions on the ONDC network

Mystore provides advanced ONDC network solutions for both sellers and buyers through compatible seller app and buyer app respectively. 

As the Seller network participant, Mystore provides integrated cutting-edge technologies to enhance the overall e-commerce experience for pan-India sellers including micro businesses, SMEs, and enterprise brands. The Mystore Seller app provides sellers with an advanced set of tools for product listing, inventory management, order management, seller-distributors management, and more. Enterprises can digitise their complete business and onboard their entire seller distributor network to the ONDC Network.

Mystore Seller App for Enterprises: 

Features of the Mystore seller app include:

• Mystore makes it easy for enterprise businesses to onboard their entire distributor network on ONDC network
• With Mystore, brands can have omni channel presence with mobile app, website and PWA
• Mystore is built on PCI-DSS compliant platform to provide multi-level data and payment security for enterprise business
• Built on future-ready technology (Mean Stack and MACH architecture), Mystore enhances the speed, scalability, and performance of enterprise business in digital space  
• Hassle-free channel integration to pull products from marketplaces to ONDC network
• Freedom to choose between on-network or preferred logistics partners for smooth delivery and maximum profit
• Integrated with pre-integrated service providers like Unicommerce, Browntape, EasyEcom etc
• Specific enterprise pages for each business with unique QR codes to attract and retain buyers
• Master catalogue management to manage vast product catalogue of the entire seller distributor network
• Seller distributor management to manage products, orders, logistics, and payouts from a common central admin
• Multilingual admin panel to manage the business in the preferred language
• Mystore is built on mobile-first technology that enables enterprises to manage business from remote locations
• Mystore offers enterprise ecommerce solutions for various business models which include D2C, B2C,B2B, etc

On the buyer side, the Mystore buyer app offers a seamless shopping journey for every buyer, based on their previous buying preferences. Mystore also provides some unique and out-of-the-box features to simplify the shopping on ONDC network even for buyers who do not have prior knowledge of online shopping. 

Features of the Mystore Buyer app include:

• Mystore provides a user-friendly interface for a hassle-free shopping experience for buyers
• Using Mystore’s multilingual feature buyers can buy on ONDC network in their preferred language
• Mystore comes with multiseller shopping cart to add products from different sellers and buy them in single transaction
• Mystore provides flexible payment options for buyers to pay via card, net banking, or digital wallets
• Mystore’s built-in order tracking feature enables buyers to track the status of their orders
• Mystore’s provides hassle-free customer support integrated with ONDC network’s IGM framework
• Mystore’s ticketing system enables buyers to raise the issue for their orders

Conclusion

The ONDC network, or the Open Network for Digital Commerce protocol is on its way to completely transform digital commerce in India. With its focus on creating an open-source, robust, decentralized digital infrastructure for one and all, this revolutionary government-backed initiative is the one-stop digital solution for all sellers and buyers pan India.

With a compatible seller app like the Mystore Seller app, sellers of every size and scale can easily establish their business online and leverage the ONDC network’s built-in features to manage their business smoothly. The open network not only facilitates an easy online transition for sellers but also provides buyers with a variety of products and services from pan-India sellers on a single platform. Using a single buyer app like Mystore Buyer App, buyers can easily explore and buy products at competitive pricing from sellers across India. 

With ready-made digital solutions, integrated features, secure payments, and government support, the ONDC network is all set to reshape the ecommerce ecosystem in India and it's high time for buyers and sellers to adopt this new-age digital transformation in 2024. 

Ready to experience ecommerce like never before? Start selling and buying on ONDC Network with Mystore right away!