In the marketplace, the website or app serves as a platform connecting buyers and sellers. They earn a percentage cut when a specific product is sold. On the other hand, in the inventory model, the platform purchases directly from the seller in bulk, utilizing its bargaining power to acquire products at a lower cost and then sell them at a higher price, thereby increasing their own profit margin. It is evident that e-commerce platforms benefit greatly from this model, maximizing their profits. Additionally, these platforms have the ability to promote products from sellers they have purchased from, offering exclusive deals and offers that may overshadow other sellers. In India, FDI (Foreign Direct Investment) is not permitted in inventory-driven models. Consequently, companies like Amazon, Flipkart, and a few others can only operate using the marketplace model. So, in order to maximize profits, what can e-commerce sites do? They can restrict search results to favor brands that have partnered with the platform, ensuring maximum visibility for their preferred sellers who offer higher profit margins. Furthermore, these platforms have control over logistics such as goods and delivery. This is where the Open Network for Digital Commerce (ONDC) comes into play, providing results from various e-commerce platforms and offering multiple benefits:

1. You have the opportunity to discover local stores near you, enabling faster and more affordable access to the products you need.

2. This creates a level playing field for small sellers and retailers, eliminating platform biases.

3. If a seller's app is unable to deliver to your address, you can choose an alternative delivery partner from the ONDC tool. For instance, you can order food from Zomato and select Dunzo as the delivery service.