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Home > Blog > Amazon and ONDC
Author: Pranav Deshpande
Read Time: 5-7 mins
Jan 25, 2025
Amazon & ONDC
Amazon & ONDC
Amazon & ONDC
Author: Pranav Deshpande
Read Time: 5-7 mins
Jan 25, 2025
Open Network for Digital Commerce (ONDC) is an initiative by the Indian government to create a fair and open online marketplace, focusing on helping small and medium-sized businesses compete in e-commerce. In contrast, Amazon is a tech giant in the e-commerce space, dominating the market with its own platform, vast resources and a whole set of its own industries. While both ONDC and Amazon enable online buying and selling, their objectives and operational models are quite different.
Difference in the Ownership Model
Amazon operates as a centralized platform where sellers must work within its system only and adhere to its rules, including paying high platform fees (25–35% per sale). This can make it difficult for smaller sellers to compete with big brands with higher marketing budgets.
Open Network for Digital Commerce (ONDC) is an initiative by the Indian government to create a fair and open online marketplace, focusing on helping small and medium-sized businesses compete in e-commerce. In contrast, Amazon is a tech giant in the e-commerce space, dominating the market with its own platform, vast resources and a whole set of its own industries. While both ONDC and Amazon enable online buying and selling, their objectives and operational models are quite different.
Difference in the Ownership Model
Amazon operates as a centralized platform where sellers must work within its system only and adhere to its rules, including paying high platform fees (25–35% per sale). This can make it difficult for smaller sellers to compete with big brands with higher marketing budgets.
ONDC, on the other hand, adopts a decentralized system, allowing sellers, buyers, delivery services, and payment options to operate independently. In a decentralized setup, no single company or platform has complete control; instead, multiple individuals and businesses collaborate under a shared set of guidelines. With much lower and nominal fees, ONDC makes it more affordable and accessible for small businesses to join and succeed.
Think of Amazon as a big shopping mall where every shopkeeper has to rent a space, follow the mall's rules, and pay a hefty share of their earnings to the mall owner. The mall brings in many customers, but high costs and strict rules make it hard for smaller shopkeepers, letting big international brands take over.
ONDC, on the other hand, is like an open marketplace in a town square. Here, shopkeepers can set up their stalls wherever they like, choose how they operate, and only pay a small fee to cover basic services. This setup gives small shopkeepers more freedom and a better chance to compete on equal footing.
To know more about this network and who actually “owns” ONDC, feel free to read another of our blogs: https://sellersetu.in/blog/ondc-ownership-model
ONDC, on the other hand, adopts a decentralized system, allowing sellers, buyers, delivery services, and payment options to operate independently. In a decentralized setup, no single company or platform has complete control; instead, multiple individuals and businesses collaborate under a shared set of guidelines. With much lower and nominal fees, ONDC makes it more affordable and accessible for small businesses to join and succeed.
Think of Amazon as a big shopping mall where every shopkeeper has to rent a space, follow the mall's rules, and pay a hefty share of their earnings to the mall owner. The mall brings in many customers, but high costs and strict rules make it hard for smaller shopkeepers, letting big international brands take over.
ONDC, on the other hand, is like an open marketplace in a town square. Here, shopkeepers can set up their stalls wherever they like, choose how they operate, and only pay a small fee to cover basic services. This setup gives small shopkeepers more freedom and a better chance to compete on equal footing.
To know more about this network and who actually “owns” ONDC, feel free to read another of our blogs: https://sellersetu.in/blog/ondc-ownership-model
Amazon often promotes its own private-label brands, such as Amazon Basics, which includes products ranging from electronics to household items. These items are typically given prime visibility on the platform, appearing at the top of search results or under "Amazon's Choice" or "Best Seller" tags. For example, if a customer searches for "charging cable," an Amazon Basics charging cable is likely to appear prominently, even above products from other sellers.
This preferential treatment gives Amazon-backed products a competitive edge in pricing, visibility, and trust, making it harder for smaller or independent sellers to compete, especially if they don’t have the resources to match Amazon’s aggressive pricing or marketing strategies.
What Does ONDC Provide?
ONDC also offers flexibility, allowing sellers to choose their delivery partners and list products across various apps, providing customization options to suit their needs. Amazon, however, controls the entire process from product listing to delivery, ensuring consistency but limiting sellers' operational freedom.
Amazon often promotes its own private-label brands, such as Amazon Basics, which includes products ranging from electronics to household items. These items are typically given prime visibility on the platform, appearing at the top of search results or under "Amazon's Choice" or "Best Seller" tags. For example, if a customer searches for "charging cable," an Amazon Basics charging cable is likely to appear prominently, even above products from other sellers.
This preferential treatment gives Amazon-backed products a competitive edge in pricing, visibility, and trust, making it harder for smaller or independent sellers to compete, especially if they don’t have the resources to match Amazon’s aggressive pricing or marketing strategies.
What Does ONDC Provide?
ONDC also offers flexibility, allowing sellers to choose their delivery partners and list products across various apps, providing customization options to suit their needs. Amazon, however, controls the entire process from product listing to delivery, ensuring consistency but limiting sellers' operational freedom.
(Credit: Internet Freedom Foundation)
As a government-led initiative, ONDC prioritizes transparency and fairness, aiming to protect small businesses and prevent unfair practices like predatory pricing. In contrast, Amazon, as a private company, focuses on profit-making and lacks the same level of public accountability, even though it provides seller support and customer service.
How The Future Looks Like
Amazon announced in February 2023 that it would join the Open Network for Digital Commerce (ONDC). As part of this partnership, Amazon agreed to share its delivery services and tools, like SmartCommerce, to help small businesses and local shops (kiranas). These tools include features like managing orders, tracking inventory, and organizing deliveries, which are usually available only to big companies. Small businesses using Amazon will be able to sell their products on ONDC, reach more customers, and benefit from Amazon’s technology and delivery services.
(Credit: Internet Freedom Foundation)
As a government-led initiative, ONDC prioritizes transparency and fairness, aiming to protect small businesses and prevent unfair practices like predatory pricing. In contrast, Amazon, as a private company, focuses on profit-making and lacks the same level of public accountability, even though it provides seller support and customer service.
How The Future Looks Like
Amazon announced in February 2023 that it would join the Open Network for Digital Commerce (ONDC). As part of this partnership, Amazon agreed to share its delivery services and tools, like SmartCommerce, to help small businesses and local shops (kiranas). These tools include features like managing orders, tracking inventory, and organizing deliveries, which are usually available only to big companies. Small businesses using Amazon will be able to sell their products on ONDC, reach more customers, and benefit from Amazon’s technology and delivery services.
(Credit: Amazon India)
However, Amazon’s main shopping website will most likely not be part of ONDC. Instead, Amazon is only offering its delivery and technology support to ONDC sellers. This has led to questions about how much Amazon’s involvement will actually impact ONDC’s overall success, as it’s not fully part of the network.
Meanwhile, the Indian government is encouraging major players like Flipkart to host ONDC storefronts on their platforms. This strategy is aimed at improving ONDC’s operational efficiency and taking advantage of the large customer bases of these giants to drive traffic and sales.
If you're a seller looking to join ONDC, SellerSetu is here to guide you every step of the way. Fill out the form below to book a demo and discover how our expertise can make your onboarding seamless and enhance your experience!
(Credit: Amazon India)
However, Amazon’s main shopping website will most likely not be part of ONDC. Instead, Amazon is only offering its delivery and technology support to ONDC sellers. This has led to questions about how much Amazon’s involvement will actually impact ONDC’s overall success, as it’s not fully part of the network.
Meanwhile, the Indian government is encouraging major players like Flipkart to host ONDC storefronts on their platforms. This strategy is aimed at improving ONDC’s operational efficiency and taking advantage of the large customer bases of these giants to drive traffic and sales.
If you're a seller looking to join ONDC, SellerSetu is here to guide you every step of the way. Fill out the form below to book a demo and discover how our expertise can make your onboarding seamless and enhance your experience!
More on ONDC…
More on ONDC…
Are You Ready To Start A Successful Journey On ONDC ?
Join the growing community of successful sellers who trust SellerSetu for their online selling needs. Start selling on the best online marketplace on ONDC. Fill out this form, and our team will reach out to you within the next 24 hours.
Are You Ready To Start A Successful Journey On ONDC ?
Join the growing community of successful sellers who trust SellerSetu for their online selling needs. Start selling on the best online marketplace on ONDC. Fill out this form, and our team will reach out to you within the next 24 hours.
Are You Ready To Start A Successful Journey On ONDC ?
Join the growing community of successful sellers who trust SellerSetu for their online selling needs. Start selling on the best online marketplace on ONDC. Fill out this form, and our team will reach out to you within the next 24 hours.