What is ONDC, Who Owns It, and Why It’s Better Than current e-commerce?

Have you heard about ONDC, the new way of shopping online in India? It's quite different from the big stores we know, like Amazon and Flipkart. Let me explain!

Imagine a huge, friendly market where every shopkeeper in town can easily open a stall. Now, picture yourself as a shopper strolling through this market. You can buy anything you want from any stall, without having to visit different markets for different things. Sounds convenient, right? That's exactly what ONDC is trying to create for online shopping!

Many people think the government runs ONDC, but that’s not quite true. It’s actually a private, non-profit organization. Think of it like a community project that the Indian government helped start, but doesn’t own or control directly.

The government is backing ONDC because they want to make online shopping fairer for everyone. They’ve noticed that a few big online stores have been dominating the market, making it hard for smaller shops to compete. With ONDC, the goal is to give all businesses, big or small, a chance to reach customers easily.

It’s like the government is helping build a new town square for online shopping, where you can find products from all kinds of sellers in one place. The aim is to ensure that when you shop online, you have lots of choices—not just from famous brands, but from local businesses too.

Have you heard about ONDC, the new way of shopping online in India? It's quite different from the big stores we know, like Amazon and Flipkart. Let me explain!

Imagine a huge, friendly market where every shopkeeper in town can easily open a stall. Now, picture yourself as a shopper strolling through this market. You can buy anything you want from any stall, without having to visit different markets for different things. Sounds convenient, right? That's exactly what ONDC is trying to create for online shopping!

Many people think the government runs ONDC, but that’s not quite true. It’s actually a private, non-profit organization. Think of it like a community project that the Indian government helped start, but doesn’t own or control directly.

The government is backing ONDC because they want to make online shopping fairer for everyone. They’ve noticed that a few big online stores have been dominating the market, making it hard for smaller shops to compete. With ONDC, the goal is to give all businesses, big or small, a chance to reach customers easily.

It’s like the government is helping build a new town square for online shopping, where you can find products from all kinds of sellers in one place. The aim is to ensure that when you shop online, you have lots of choices—not just from famous brands, but from local businesses too.

Remember how we used to struggle with sending money to friends who used different banks? Then UPI came along and made it super easy—you could send money to anyone, no matter which payment app they used. That’s the kind of magic ONDC wants to bring to online shopping!

Now, you might think ONDC is just another shopping app, right? Well, it’s not! Think of it more like a special language that helps different shopping websites and apps talk to each other. It’s like a friendly translator that makes sure everyone in the online shopping world can understand each other, much like how the internet connects different email services. For example, when you send an email from a Yahoo account to a Gmail account, the message gets delivered smoothly because both services understand the same "email language." Similarly, a buyer using one app, like a local grocery app, can easily purchase products from a seller on another platform, like a specialized clothing website. Even though these platforms are different, ONDC ensures they can "interact" with each other, making it easy for the buyer to place an order and for the seller to fulfill it.

Here's why this is exciting:

Imagine you're a talented artist in a small village, making beautiful handicrafts. With ONDC, you could sell your creations to people all over India, even if you're not on big websites like Amazon. You just need to list your products on any seller app that's part of ONDC, and boom—you're in business!

And it gets better. Say you need to ship your handicrafts to a customer. With ONDC, you're not stuck with just one delivery company. You can choose from any delivery service that's part of the network. It’s like having a bunch of friends with delivery vans, and you get to pick who helps you out each time.

The big idea here is to make online selling and buying fair for everyone, not just the big players. It’s about giving small businesses a chance to shine and making it easier for you to find unique products from all over India.

Remember how we used to struggle with sending money to friends who used different banks? Then UPI came along and made it super easy—you could send money to anyone, no matter which payment app they used. That’s the kind of magic ONDC wants to bring to online shopping!

Now, you might think ONDC is just another shopping app, right? Well, it’s not! Think of it more like a special language that helps different shopping websites and apps talk to each other. It’s like a friendly translator that makes sure everyone in the online shopping world can understand each other, much like how the internet connects different email services. For example, when you send an email from a Yahoo account to a Gmail account, the message gets delivered smoothly because both services understand the same "email language." Similarly, a buyer using one app, like a local grocery app, can easily purchase products from a seller on another platform, like a specialized clothing website. Even though these platforms are different, ONDC ensures they can "interact" with each other, making it easy for the buyer to place an order and for the seller to fulfill it.

Here's why this is exciting:

Imagine you're a talented artist in a small village, making beautiful handicrafts. With ONDC, you could sell your creations to people all over India, even if you're not on big websites like Amazon. You just need to list your products on any seller app that's part of ONDC, and boom—you're in business!

And it gets better. Say you need to ship your handicrafts to a customer. With ONDC, you're not stuck with just one delivery company. You can choose from any delivery service that's part of the network. It’s like having a bunch of friends with delivery vans, and you get to pick who helps you out each time.

The big idea here is to make online selling and buying fair for everyone, not just the big players. It’s about giving small businesses a chance to shine and making it easier for you to find unique products from all over India.

A major part of ONDC’s structure is its variety of participants, each contributing to the e-commerce process in unique ways. Sellers can be anyone, from small local artisans selling handmade crafts to big retail chains offering a wide range of products. Buyers can be everyday shoppers looking for personal items or businesses purchasing supplies in bulk. Logistics providers handle the delivery of goods, making sure products reach customers on time.

This interconnectedness removes the need for every buyer and seller to be on the same app, broadening opportunities and making online shopping more convenient and accessible, just like how email made communication across different providers effortless.

Complaints and issues system in ONDC

ONDC has a strong system to handle complaints and disputes through something called Online Dispute Resolution (ODR). This system helps solve problems at different levels, starting with quick fixes and moving up to formal mediation if needed. For example, if a buyer has an issue with a product they bought on an ONDC platform, they can first raise a request to the seller for a quick solution. If that doesn’t work, the issue can be taken to a Grievance Redressal Officer (GRO). Unlike existing players, which handles everything—from managing deliveries and payments to resolving disputes—ONDC spreads these tasks among different parties. This teamwork makes the system more flexible and effective, as each party focuses on what they do best, leading to a smoother and more reliable experience for everyone.

A major part of ONDC’s structure is its variety of participants, each contributing to the e-commerce process in unique ways. Sellers can be anyone, from small local artisans selling handmade crafts to big retail chains offering a wide range of products. Buyers can be everyday shoppers looking for personal items or businesses purchasing supplies in bulk. Logistics providers handle the delivery of goods, making sure products reach customers on time.

This interconnectedness removes the need for every buyer and seller to be on the same app, broadening opportunities and making online shopping more convenient and accessible, just like how email made communication across different providers effortless.

Complaints and issues system in ONDC

ONDC has a strong system to handle complaints and disputes through something called Online Dispute Resolution (ODR). This system helps solve problems at different levels, starting with quick fixes and moving up to formal mediation if needed. For example, if a buyer has an issue with a product they bought on an ONDC platform, they can first raise a request to the seller for a quick solution. If that doesn’t work, the issue can be taken to a Grievance Redressal Officer (GRO). Unlike existing players, which handles everything—from managing deliveries and payments to resolving disputes—ONDC spreads these tasks among different parties. This teamwork makes the system more flexible and effective, as each party focuses on what they do best, leading to a smoother and more reliable experience for everyone.

ONDC has big goals for the future, and it's important to consider how it will grow and the challenges it may face, such as data privacy and user experience. One challenge is the complexity of switching from a platform model to an open network. Some users might find it a bit challenging to adapt to ONDC at first, but the organization is committed to offering training and support to help them. ONDC also has a solid system for handling complaints, which will build trust among users. As it partners with major players like Ola and Paytm, ONDC aims to create a strong marketplace that benefits everyone.

If you're a seller looking to join ONDC, SellerSetu is here to support you every step of the way. Fill out the form below to book a demo and discover how our expertise can streamline your onboarding process and enhance your experience.

What is ONDC, Who Owns It, and Why It’s Better Than current e-commerce?

What is ONDC, Who Owns It, and Why It’s Better Than current e-commerce?