ONDC Head Invites E-Commerce Majors Amazon and Flipkart to Join Network

India’s Open Network for Digital Commerce (ONDC) has extended an invitation to e-commerce giants Amazon and Flipkart to join its digital public infrastructure. Chief Executive Officer T Koshi stated that they were welcome to become part of the network. While both companies have expressed interest and intent, they have not yet integrated their systems due to their current scale and size of operations. ONDC, established by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to develop open e-commerce and promote open source networks for exchanging goods and services online, independent of any specific platform.

ONDC, incorporated on December 31, 2021, represents a shift from the existing platform-centric digital commerce model. It allows buyers and sellers to be digitally visible and engage in business transactions without the limitation of using the same platform or application. India has made significant advancements in developing digital public goods infrastructure, and ONDC has the potential to revolutionize digital commerce on a global scale.

Since its launch in January, ONDC has experienced a significant increase in transactions, with over 30,000 transactions for goods and 50,000 transactions for services per day. The platform has attracted interest from both large players and small merchants. With more control over transaction terms and conditions, improved pricing, and better costing, the network offers vendors the freedom and opportunities for growth.

While the platform initially included grocery and food items merchants, it is now expanding to include beauty, fashion, personal care products, electronics, and more. This diverse range of categories enhances the platform’s appeal and functionalities.