PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

India’s ONDC Aims to Democratize e-Commerce

Don Apgar by Don Apgar
June 1, 2022
in Analysts Coverage, E-commerce
0
India's ONDC Aims to Democratize e-Commerce

India's ONDC Aims to Democratize e-Commerce

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

The Open Network for Digital Commerce (ONDC) was launched across 5 cities in India last month amid much fanfare and high expectations. Digital commerce in India is estimated to be a $45B annual industry, and up until now has been largely controlled by Amazon and Walmart. The ONDC, operated by the Indian government, aims to democratize e-commerce and create a more level playing field where smaller, local businesses can compete effectively with the giants. Users shopping on any app that is registered with ONDC will see products from multiple sellers, both online and local stores. Since ONDC’s platform also unbundles supporting services like payments and logistics, shoppers can choose not only which store to purchase from, but also which payment scheme and shipping carrier to use. 

“This model enables not concentration, but more dispersion and healthy competition,” says ONDC chief executive T. Koshy. “It is going to happen from broad sets of people who will bring their specialized and value-added services.”

Prime Minister Narendra Modi has also publicly endorsed ONDC and its stated mission to help small businesses across the country..

The government plans to scale ONDC significantly, including 10 million merchants on its platform and expanding to 100 cities by 3Q22. Government intervention into free markets is rarely a good thing, however, and it remains to be seen if ONDC will actually help small businesses, or simply favor the big players by making it easier for the consumer to shop more stores on price alone. Many e-commerce sellers restore lost margin on heavily discounted products through markups on shipping and delivery, and the ONDC will end the viability of that strategy if shoppers are able to unbundle shipping from their product purchase.

Overview by Don Apgar, Director, Merchant Services Advisory Practice at Mercator Advisory Group

Tags: Digital Commercee-commerceEcommerceIndiaMerchantMerchants
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    live shopping, ebay

    Q&A: eBay Exec on Live Shopping and the Future of Payments

    March 24, 2023
    AI and Biometrics in Regulatory Compliance in Finance

    The Importance of AI and Biometrics in Regulatory Compliance in Finance

    March 23, 2023
    Everyone Benefits from the Real-Time Payment Networks  

    Everyone Benefits from the Real-Time Payment Networks  

    March 22, 2023
    commercial payments

    Optimizing Commercial Payments in the Digital Age

    March 21, 2023
    cross-border payments

    Cross-Border Payments: Fighting
    E-Commerce Fraud Using Data

    March 20, 2023
    fraud, ChatGPT-4

    How to Fight Fraud While Still Enabling a Great Online Customer Experience

    March 17, 2023
    RTP

    Financial Institutions Without an RTP Strategy Risk Being Left Behind

    March 16, 2023
    visa chargeback

    New Visa Chargeback Guidelines Will Be a Game Changer

    March 15, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the Payoneer eBook: