ONDC to Charge Fees?

Open Network for Digital Commerce (ONDC) recently announced the introduction of a nominal platform usage fee for all its registered buyers and sellers, who are also known as network participants (NPs) from January 1, 2025 onwards.

Introduced to help grow an open commerce ecosystem in India, ONDC has played a major role in developing and maintaining this network that enables transactions between various participants, including businesses, service providers, and consumers.

Open Network for Digital Commerce (ONDC) recently announced the introduction of a nominal platform usage fee for all its registered buyers and sellers, who are also known as network participants (NPs) from January 1, 2025 onwards.

Introduced to help grow an open commerce ecosystem in India, ONDC has played a major role in developing and maintaining this network that enables transactions between various participants, including businesses, service providers, and consumers.

(Credit: Perfios)

Initially, ONDC had refrained from charging any sort of “platform fees” to encourage participation, particularly from small Indian businesses, which had helped to establish a strong foundation for the network’s growth. However, with the network now beginning to mature and the need for continuous tech developments, ONDC has now decided to introduce this fee to ensure the future existence of its operations and its long-term success.

What ONDC will Provide to Sellers

For new registered participants on ONDC, it provides support with setup, compliance with the network regulations, and daily operations. ONDC also builds and manages groups to oversee the network's growth and governance. It ensures everyone follows fair practices and stays within the rules. To promote transparency, it offers tools like the Network Observability framework and shares tips and best practices to help participants improve. Finally, it has a strong system to handle customer complaints quickly and effectively.

(Credit: Perfios)

Initially, ONDC had refrained from charging any sort of “platform fees” to encourage participation, particularly from small Indian businesses, which had helped to establish a strong foundation for the network’s growth. However, with the network now beginning to mature and the need for continuous tech developments, ONDC has now decided to introduce this fee to ensure the future existence of its operations and its long-term success.

What ONDC will Provide to Sellers

For new registered participants on ONDC, it provides support with setup, compliance with the network regulations, and daily operations. ONDC also builds and manages groups to oversee the network's growth and governance. It ensures everyone follows fair practices and stays within the rules. To promote transparency, it offers tools like the Network Observability framework and shares tips and best practices to help participants improve. Finally, it has a strong system to handle customer complaints quickly and effectively.

How does ONDC monthly platform Fees Work

Given the increasing needs of maintaining and improving this digital network, this fee seems necessary considering it’s ultimately a not-for-profit organisation. The fee will be used to enhance technology infrastructure, ensure data security, develop new protocols, and offer ongoing technical support to network participants. The introduction of the fee comes after lots of talks with network participants, including discussions at the Network Participant Connect event in November 2024. This approach helped the management at ONDC to decide the nature and amount of the fee.

How the Transaction Fees Will Work

From January 1, 2025, ONDC will charge a fee of INR 1.5 (exclusive of taxes) for each successful and complete transaction above INR 250. This fee will apply to all transactions, regardless of the category of product or service, as long as they meet the value threshold and are not canceled or refunded within the specified return window.

The fee will be charged to Seller Network Participants, including businesses selling goods, logistics providers, and financial institutions like lenders, insurance companies, and mutual funds. The fee is designed to be simple, fair, and easy to apply. It focuses on keeping things straightforward, protecting sensitive business data, and ensuring fairness and value. This approach makes the fee easy to understand and avoids putting too much strain on businesses who joined ONDC thinking that it won’t charge such fees.

Given the increasing needs of maintaining and improving this digital network, this fee seems necessary considering it’s ultimately a not-for-profit organisation. The fee will be used to enhance technology infrastructure, ensure data security, develop new protocols, and offer ongoing technical support to network participants. The introduction of the fee comes after lots of talks with network participants, including discussions at the Network Participant Connect event in November 2024. This approach helped the management at ONDC to decide the nature and amount of the fee.

How the Transaction Fees Will Work

From January 1, 2025, ONDC will charge a fee of INR 1.5 (exclusive of taxes) for each successful and complete transaction above INR 250. This fee will apply to all transactions, regardless of the category of product or service, as long as they meet the value threshold and are not canceled or refunded within the specified return window.

The fee will be charged to Seller Network Participants, including businesses selling goods, logistics providers, and financial institutions like lenders, insurance companies, and mutual funds. The fee is designed to be simple, fair, and easy to apply. It focuses on keeping things straightforward, protecting sensitive business data, and ensuring fairness and value. This approach makes the fee easy to understand and avoids putting too much strain on businesses who joined ONDC thinking that it won’t charge such fees.

The fee will be invoiced monthly by ONDC’s finance team, with invoices sent by the 15th of each month for transactions conducted in the previous month. The payment for these invoices will be due within 10 calendar days from the invoice date. The fee payment can be made via bank transfer to ONDC’s designated bank account, and the payment details are provided for transparency. The fee will apply only to transactions that meet the value threshold and are deemed successful, excluding canceled or refunded transactions. If there are issues with the fee, participants can contact ONDC to resolve them. Any changes to the fee, like the amount or how it works, will be announced 30 days before they take effect.

Is It Fair to Charge Fees?

Zomato has increased its platform fee from Rs 7 to Rs 10 ahead of the festive season, a necessary move to maintain services during this busy period. This follows a similar fee hike by Swiggy and comes after Zomato's strong Q2 earnings. Zomato's platform fee, initially introduced in 2024, had helped the company generate Rs 83 crore in revenue, contributing to a 27% increase in its annual revenue to Rs 7,792 crore.

As the network grows, ONDC needs to invest in keeping its services reliable and secure for all businesses. Charging a small fee makes sense to cover these costs and ensure the platform continues to work smoothly. Since the network is expanding, it’s only fair to share the cost of maintaining and improving the system.

The fee will be invoiced monthly by ONDC’s finance team, with invoices sent by the 15th of each month for transactions conducted in the previous month. The payment for these invoices will be due within 10 calendar days from the invoice date. The fee payment can be made via bank transfer to ONDC’s designated bank account, and the payment details are provided for transparency. The fee will apply only to transactions that meet the value threshold and are deemed successful, excluding canceled or refunded transactions. If there are issues with the fee, participants can contact ONDC to resolve them. Any changes to the fee, like the amount or how it works, will be announced 30 days before they take effect.

Is It Fair to Charge Fees?

Zomato has increased its platform fee from Rs 7 to Rs 10 ahead of the festive season, a necessary move to maintain services during this busy period. This follows a similar fee hike by Swiggy and comes after Zomato's strong Q2 earnings. Zomato's platform fee, initially introduced in 2024, had helped the company generate Rs 83 crore in revenue, contributing to a 27% increase in its annual revenue to Rs 7,792 crore.

As the network grows, ONDC needs to invest in keeping its services reliable and secure for all businesses. Charging a small fee makes sense to cover these costs and ensure the platform continues to work smoothly. Since the network is expanding, it’s only fair to share the cost of maintaining and improving the system.

This fee will help ONDC stay sustainable, keep the platform fair for everyone, and support the continued growth of digital commerce.

If you’re a seller interested in joining ONDC, SellerSetu is ready to help! Head to our website to get started.

Fill out the form below to schedule a demo and see how we can streamline your onboarding process while improving your experience. Our platform is built to help you sell online and foster your business growth. Start your journey with ONDC and reap the benefits!

This fee will help ONDC stay sustainable, keep the platform fair for everyone, and support the continued growth of digital commerce.

If you’re a seller interested in joining ONDC, SellerSetu is ready to help! Head to our website to get started.

Fill out the form below to schedule a demo and see how we can streamline your onboarding process while improving your experience. Our platform is built to help you sell online and foster your business growth. Start your journey with ONDC and reap the benefits!

ONDC to Charge Fees?

ONDC to Charge Fees?