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How is ONDC helping small businesses?

How is ONDC helping small businesses?

Bitsila - January 19, 2023 - Open Network for Digital Commerce (ONDC)
Ever since eCommerce entered the market, it has become a part of everyday life. We can see a wide variety of eCommerce businesses these days such as large brands, marketplaces, small stores, etc. However, consumers frequently rely on well-known brands and online marketplaces to make purchases. To overcome this monotony in the eCommerce market government of India has come up with a unique plan called ONDC.
Have you ever wondered how ONDC helps small businesses to stand out from the competition?
We will make every detail clear in this article, continue reading to the end!

What is ONDC?

ONDC is an open network of eCommerce businesses that follows certain rules, open protocols, and registries while controlled by higher authorities. By registering with ONDC, small companies can become visible to everyone, regardless of which platform they sell on.
When it comes to the customer experience, people can quickly access all of the nearby businesses that operate in ONDC and place an order without having to register or be restricted to a specific platform.
The main objective of ONDC is to address the difficulties faced by small business owners who sell in marketplaces and provide equal opportunities. The ONDC welcomes all small businesses in retail, food and beverage, cosmetics, essentials, grocery, clothing, and other industries. In the following section, let’s take a closer look at the main advantages of ONDC for small businesses.

What are the benefits of ONDC for small businesses?

Joining the ONDC network has various advantages for small businesses, among the most significant ones are described below:

Discoverability

The key to generating sales for any business is being able to be seen by the target demographic. When we look at the current eCommerce system, selling any product requires sellers to register for a specific marketplace. Another common practice these days is to have an eCommerce store and handle all the operations from marketing to shipping products. However, these approaches need initial investments and effort, and sellers cannot be visible to all customers searching on different platforms.
This is where ONDC steps in by creating an open network with specific policies and protocols where all sellers are accessible to all buyers in a single place. To be visible to all customers, sellers do not have to register on every marketplace. This is one of the most significant advantages of the ONDC.

Great equalizer

According to current eCommerce trends, giant marketplaces own 80% of the market share. The sellers in these marketplaces have to pay a significant portion of taxes to the platform. These marketplaces also have access to all the crucial sales data that allows them to recreate the same products and sell to particular demographics. By following these methods they can easily conquer small players in the market.
ONDC serves as an equalizer for small businesses by removing all these imbalances. On top of that, there are no entry barriers to starting innovative businesses as sellers do not need to pay hefty commissions to marketplaces. As a result, it benefits both customers and sellers.

Single point of contact

There are a number of eCommerce platforms in the market that allows the seller to list their products on their site. All the sellers need to follow a set of guidelines to sell on the particular platform. But coming to ONDC, it serves as a single point of contact for buyers and sellers by creating an extensive network of eCommerce businesses. It enables a decentralized network managed by numerous local offices or authorities instead of just one.
A single click allows buyers to connect with all the sellers on ONDC. Both buyers and sellers do not need to register on any platform or marketplace. ONDC is currently integrated with PhonePay, Paytm, IDFC First Bank, and many others to provide customers with a seamless buying experience. By forming all these protocols, ONDC has accomplished this by serving as the nation’s only point of contact for eCommerce.

Operational effectiveness

Under the current eCommerce system, all the eCommerce operations are handled by the eCommerce marketplace. The sellers list their products according to specific guidelines and the marketplace handles every operation, from adding products to delivering.
To avoid these complexities, ONDC has divided each into separate divisions, such as listing products at a fair price, placing orders, and logistics.
All the processes of eCommerce take place through ONDC’s point of contact under specific rules and protocols. With ONDC, the entire process is divided into three sections: the retailer buyer app, the retailer seller app, and the logistic seller app.

Avoids monopolies, duopolies, and triopolies.

Whether it be apparel, cosmetics, groceries, stationery, etc., there is always a monopoly, duopoly, or triopoly ruling every sector of the eCommerce industry. Small sellers usually sell in these markets to take advantage of the increased customer base of these marketplaces.
On the other hand, ONDC is making its best effort to minimize such situations and to offer equal opportunities to small businesses.
ONDC strives to make non-rivalrous products accessible to a broader population by listing all the category businesses in ONDC. It allows small sellers to sell under their own terms and conditions and prevents them from having to pay a substantial portion of commissions to marketplaces. By offering all these benefits to small businesses, ONDC becomes an all-in-one buyer app with a vast seller community.

Final takeaway

These are the main advantages our customers have found by utilizing ONDC, yet there is much more that you can take advantage of.
The ONDC has developed numerous opportunities for small businesses and will continue to do so in the future. If you are a small business owner looking to improve your sales and visibility, ONDC is the place for you!
We hope this article has helped you understand everything about the ONDC. We encourage you to register and sell your goods with ONDC using our

Bitsila software.

Empowering every retailer and the retail industry with the world’s best tech and tools for them to thrive in the highly competitive Retail Commerce.

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