India’s e-commerce landscape has been growing at an astonishing pace, with the market valued at $84 billion in 2021 and projected to reach $200 billion by 2026. This growth, driven by an expanding internet user base, smartphone adoption, and increased digital literacy, reflects the country’s shift toward a digital-first economy.

However, despite this expansion, over 90% of India’s retail sector remains offline, with small businesses and local artisans struggling to access the benefits of e-commerce.

In this context, the Open Network for Digital Commerce (ONDC) presents a powerful opportunity for small sellers and underserved communities to join the digital economy. With an ambitious goal of integrating over three crore sellers and reaching 30 crore shoppers by 2024, ONDC is more than just a network—it’s a vision for a self-sustained, inclusive, and equitable digital ecosystem. 

Here are the inspiring ways in which ONDC is revolutionizing e-commerce in India:

Empowering Farmer Producer Organizations (FPOs)

For years, small farmers in India struggled with limited market access and low prices. The ONDC initiative, in collaboration with FPOs like BASIX Krishi Samruddhi, is changing this. In 2023, BASIX onboarded 59 FPOs from states such as Odisha, Bihar, and Uttar Pradesh, achieving ₹4 million in sales with a target of ₹10 million by 2024. 

ONDC allows FPOs to connect directly with customers nationwide, bypassing intermediaries and improving profitability. With partnerships like India Post for logistics, ONDC is making faster delivery and sustainable livelihoods possible for small farmers. With nearly 5,000 FPOs out of the 8,000 registered already onboarded, ONDC continues to support a resilient agricultural economy.

Fostering Digital Inclusivity with a Decentralized Approach

ONDC’s model promotes inclusivity, attracting over ₹255 crore in investments from stakeholders like SBI, Axis Bank, and the Quality Council of India. By partnering with private entities like Google, Paytm Mall, and Amazon, ONDC creates a hybrid marketplace where local businesses and larger companies can coexist and compete. 

The “Build for Bharat” hackathon, offering $250,000 in equity and $100,000 in Google Cloud credits, drew over 27,000 participants and encouraged them to design e-commerce solutions, bridging the digital gap between rural and urban India and driving innovation forward.

A Game-Changer for Small Businesses and Local Entrepreneurs

Small businesses often struggle with digitalization barriers, including logistics and payments. ONDC addresses these challenges by collaborating with financial institutions, tech firms, and logistics providers to support online retail. 

Startups like Zyro and Innoviti Payment Solutions provide tailored services for small retailers, facilitating digital store setups and credit access. Digital banking from IDFC First Bank and SIDBI enhances financial inclusion, equipping retailers with necessary resources. 

ONDC’s reach extends to regions like Jammu and Kashmir through partnerships with local organizations, promoting local products and fostering economic growth in areas previously disconnected from major markets.

Scaling New Heights in E-Commerce

Since its inception, ONDC has steadily expanded its operations across the country. In a historic transaction, Woolly Farms, a small enterprise based in Bengaluru, received the first order on ONDC via Paytm, marking the beginning of a digital revolution in Indian commerce. With over 31,000 merchants offering more than 3.7 million products, ONDC’s reach is unmatched, bringing 56,000 vehicles into its mobility network and completing over 20,000 rides daily.

Today, ONDC’s presence spans 236 cities, with logistics providers like Ecom Express, Shiprocket, and Blowhorn ensuring swift deliveries across regions. Meesho, one of India’s leading e-commerce platforms, has joined ONDC, further strengthening the platform’s retail footprint. 

The addition of logistics partners like Shadowfax and DTDC brings efficiency and reliability to last-mile delivery, a crucial aspect of e-commerce success. By setting a referral commission cap at just 3%, ONDC makes digital trade affordable and accessible for small retailers, in contrast to the steep 30% rates typical of larger e-commerce platforms.

Breaking Boundaries with Beckn Protocol

ONDC’s backbone, the Beckn Protocol, is a unique open-source framework that underpins this digital ecosystem. Developed by experts like Nandan Nilekani, Pramod Varma, and Sujith Nair, this protocol enables various elements of e-commerce—discovery, payment, and fulfillment—to operate in a standardized and seamless manner. 

As a versatile platform, Beckn isn’t confined to e-commerce alone; it can also be applied in sectors such as healthcare and transportation, allowing the ONDC to extend its capabilities beyond retail. This pioneering approach facilitates competition, combats monopolies, and ensures that sellers, regardless of size, can participate on an equal footing.

A New Era of Digital Commerce in India

ONDC’s journey is a story of resilience, innovation, and hope for millions across India. By opening doors for small businesses, farmers, and artisans, ONDC is paving the way for a self-reliant digital economy that values inclusivity, fairness, and growth. Through technology, collaboration, and an unwavering commitment to inclusivity, ONDC is creating a vibrant e-commerce landscape where every seller, big or small, has a place.

As ONDC continues to grow, it promises to be a force for good, bringing the benefits of digital commerce to every corner of the country. This transformation signifies a new era for India, where digital inclusivity isn’t just an ideal but a reality, empowering communities and reshaping the nation’s economic future.

Frequently Asked Questions [FAQs]:

1. What does ONDC mean?

ONDC stands for Open Network for Digital Commerce, an initiative by the Indian government aimed at democratizing e-commerce by creating an open, inclusive digital network.

2. Is ONDC B2B or B2C?

ONDC operates as both B2B and B2C, connecting businesses to consumers and facilitating business-to-business transactions within its open digital ecosystem.

3. What is ONDC food delivery?

ONDC food delivery is a service enabling customers to order food from local restaurants through the ONDC platform, offering more options and competitive pricing.

4. Is ONDC successful in India?

ONDC has shown promising growth, with a rapidly expanding network and thousands of merchants onboarded, but it is still evolving to achieve full nationwide impact.

5. In which cities is ONDC available?

ONDC is currently available in over 236 cities across India, including major metros and smaller cities, and is continually expanding to reach more areas.

Why Story of ONDC is a symbol of Unlimited Inspiration

The Open Network for Digital Commerce (ONDC) is an Indian government initiative designed to democratize e-commerce, enabling small businesses, local artisans, and consumers to connect through an open digital network. Launched by DPIIT, ONDC supports both B2B and B2C transactions and has rapidly expanded across 236+ cities. With services like food delivery and diverse seller integration, ONDC aims to foster an inclusive digital ecosystem, promoting equitable growth within India’s e-commerce landscape.