ONDC aims to democratize digital commerce by breaking the monopoly of giants like Amazon and Flipkart, creating a level playing field for small businesses.
As India is moving toward an inclusive digital economy in 2025, here is what one needs to know about ONDC and how it might open doors for millions of small enterprises.
🧩 What is ONDC?
The Government of India with backing from DPIIT created ONDC (Open Network for Digital Commerce) to build an open network interoperable for buyers and sellers, akin to UPI in the payments space.
Unlike closed traditional e-commerce ecosystems, ONDC establishes interconnectivity amongst several seller and buyer platforms, offering any buyer app the ability to pull up listings from any seller app. Thus, visibility gets increased while dependency on single platforms gets reduced.
📈 Why the ONDC Matters for Small Business
- Level Playing Field
The ONDC takes high-entry barriers off for small and medium enterprises (SME) to compete against the big boys without heavy platform fees or advertising budgets.
- Lower Cost(ing)
Sellers will not have to pay Commission between 20–40% on Amazon or Flipkart. The ONDC hopes to keep transaction fees below 3–5%.
- Greater Reach
A listing on any ONDC partner app is visible across multiple platforms like Paytm, PhonePe, Magicpin, and Meesho.
- Local Discovery
Nearby customers can begin to discover hyper-local businesses with ease now, supporting downturn delivery and local economies. click here
🛒 Working of ONDC for Buyers and Sellers
- Sellers register themselves through any ONDC-compatible platform (SellerApp/Mystore/GoFrugal, etc.) to list the products or services.
- Buyers use apps like Paytm and Craftsvilla to discover products mapped across ONDC’s network.
- Orders get fulfilled through integration with logistic partners like Shiprocket, Delhivery, or Ekart.
💼 Examples of Who Can Benefit from ONDC
- Kiranas & Grocery Stores
- Local Restaurants & Food Vendors
- Fashion Boutiques & Handicraft Sellers
- Service Providers (plumbers, electricians, etc.)
- Small D2C Brands
🧠 Challenges ONDC Still Faces in 2025
Although promising, ONDC has still a few hurdles to clear:
- It still suffers from the low awareness among small business owners.
- Digital literacy and onboarding would be a challenge in Tier-2 and Tier-3 cities.
- Teams are still conceptualizing ways to enhance the customer experience across platforms.
🔮 Future of ONDC in India
ONDC can perhaps do for e-commerce what UPI did for making digital payments accessible, affordable, and interoperable. With government backing and private sector support, ONDC is set to go mainstream in 2025.
It’s time that small kirana stores, startups, or D2C brands give ONDC a serious thought: going digital minus heavy commissions and limited visibility.
