E-commerce has significantly simplified our lives, with smartphone apps serving as essential tools for shopping, ride booking, and transactions. Modern e-commerce solutions have eliminated the need to physically visit retail stores, making global transactions possible from the comfort of our homes. Despite the convenience, the dominance of major players like Amazon and Flipkart has created challenges for small businesses due to limited resources and expertise.

Enter ONDC, an initiative with a primary objective of addressing challenges in the online marketplace. This includes tackling issues like market dominance, the hassle of navigating through multiple applications, and user convenience problems. ONDC leverages advanced technology to establish a fair and open digital commerce network, aiming to enhance competition, empower consumers, and promote ease of use.

What is ONDC – Open Network for Digital Commerce

The Open Network for Digital Commerce (ONDC) is a revolutionary initiative backed by the Indian Government to transform the digital commerce landscape. It operates on an open protocol, allowing diverse businesses, from groceries to travel, to connect seamlessly with various applications.

In essence, ONDC is a technically advanced solution designed to enhance the accessibility and fairness of online commerce, offering a standardized and interoperable network for businesses and consumers alike.

Key factors for limited participation in the E-commerce ecosystem

Buyer Network Participant links buyers to the ONDC network through a buyer application, managing customer support, ensuring a seamless shopping experience, and offering a unified checkout process across categories.

Seller Network Participant connects sellers to the ONDC network via a seller application, digitizes catalogs, processes payments, and trains sellers in e-commerce best practices for quality fulfillment and a positive buyer experience.

ONDC Gateways are vital in the open-network ecosystem and ensure the discoverability of all sellers in the ONDC Network by multicasting search requests between buyer and seller applications as per ONDC's Network Policies.

Technology Service Providers (TSPs), like UniStack, play a crucial role in delivering software applications (stand-alone or cloud-based) as outsourced solutions to Buyer and Seller applications. Their services facilitate seamless business operations on the ONDC network, empowering e-commerce participants without requiring in-house technology expertise.

How Does ONDC Work?

🔍 Search and Discover:

• When a customer searches for a product, the buyer app sends the search to a gateway.

• The gateway looks for sellers in the ONDC registry and sends the search to seller apps.

• Seller apps check product availability and respond to the customer through the buyer app.

📱 Placing an Order:

• The seller app sends product details and terms to the buyer app for customer to check.

• ONDC allows both buyer and seller apps to handle order fulfilment, including delivery or pickup options.

• After adding items to the cart, the buyer sees logistics costs, fees, and packing charges.

• The buyer pays and confirms the order, creating a "transaction-level contract" signed by both apps.

👜 Order Fulfillment:

• Either the buyer app or seller app can deliver the product, or the customer arranges pickup.

• Apps can choose their delivery method, using their staff, agents, or third-party logistics partners.

• ONDC allows apps to find logistics providers through the platform, known as logistics service providers (LSPs).

💵 Payment and Settlement:

• Handling payments involves buyer apps, seller apps, LSPs, and recipient network participants.

• ONDC uses reconciliation service providers (RSP) and settlement agencies to facilitate smooth payments.

• RSP gets settlement terms from the contract signed by buyer/seller apps and instructs the settlement agency on payment settlement.

💰 Refunds and Returns:

• Refunds and returns follow a reverse process, and ONDC has a framework for grievance resolution.

• Online dispute resolution (ODR) service providers assist in settling consumer disputes over the ONDC protocol.

Features of ONDC

1. Open Network Transactions:

   • Enables buyers and sellers to transact over an open network, irrespective of the platform.

   • Dissolves silos, creating a single network for innovation and scalability across industries.

2. Framework for Open Networks:

   • Supports open networks using specifications and protocols independent of any platform.

   • Aims to digitize the entire value chain, standardize operations, and enhance logistics efficiency.

3. Data Privacy and Confidentiality:

   • ONDC prioritizes privacy and confidentiality, requiring no transaction-level data sharing.

   • Ensures privacy while providing aggregate metrics for network performance.

4. Advantages for Users and Sellers:

   • Increases choice and competition, offering a wide range of products at competitive prices.

   • Provides lower prices, discounts, and promotions, making it cost-effective for users.

   • Supports small businesses, enabling them to reach a broader customer base.

5. Government-Backed Credibility:

   • DPIIT-backed ONDC assures credibility and support as a government-backed initiative.

6. Standardized eCommerce Operations:

   • Enables small and medium enterprises to access processes and technologies used by large platforms.

   • Offers better discoverability, trust, and simplified payment processing.

7. Data Transparency and Ratings:

   • ONDC rates service providers for transparency, applicable and visible across the network.

   • Facilitates buying and selling beyond a single eCommerce site, providing digital marketing opportunities.

   
   

Enjoy ONDC

ONDC, set to revolutionize India's digital commerce, promotes fair competition, and user convenience, and supports local businesses. With a vision to onboard 30 million sellers, it offers a transformative opportunity for a decentralized marketplace. Explore and create with ONDC's APIs and standards for a transformative experience.

About Us

At UniStack, we are dedicated to providing the complete suite of tools and services necessary for businesses to thrive on the Open Network for Digital Commerce (ONDC). As a leading solution provider, we empower sellers, brands, and enterprises to fully harness the potential of ONDC, propelling growth and extending their digital commerce reach.