ONDC-based e-commerce applications likely in the next two years

The Centre expects a multitude of localised e-commerce applications in Indian languages — coming up in the next two years using the Open Network for Digital Commerce (ONDC) architecture — to standardise on-boarding of retailers on digital commerce platforms, thus curbing e-commerce monopolies.

ONDC, pioneered by the Department for Promotion of Industry and Internal Trade (DPIIT), aims to go beyond the current digital commerce model. It will allow the buyer and seller to do business irrespective of the platforms they use.

“To implement any project, it takes three years. We have already spent one year in completing the pilot project. In the next two years, I see a lot of localised apps coming up using ONDC architecture,” an official said, adding that this will not remain limited to the geographical boundaries of India.

The official added, “Like UPI is now going global, the pioneers of ONDC can now go and provide the same architecture around the world. This will provide huge opportunities to our own start-ups to provide these solutions to the entire world.”

Like Unified Payment Interface (UPI) has disrupted the digital payments domain, ONDC seeks to achieve something similar for e-commerce. It aims to democratise digital commerce, moving it from platform-centric models like Amazon and Flipkart to an open-network. It will empower merchants and consumers by breaking silos to form a single network to drive innovation and scale, transforming all businesses from retail goods, food to mobility.

Once a retailer lists its products or services using the ONDC’s open protocol, the business can be discovered by consumers on e-commerce platforms that follow the same protocol.
 

A consumer searching for the product can see the location of the seller and may opt to buy from the neighbourhood shop that can deliver faster compared to an e-commerce company. This may promote hyperlocal delivery of goods such as groceries, directly from sellers to consumers.

The commerce and industry ministry organised a hackathon between December 17 and 19 that was attended by digital commerce companies like Paytm, Gofrugal, Growth Falcons, Juspay, Goodbox and Dunzo.

“A mock transaction was successfully completed where Paytm acted as the buyer, Growth Falcons the seller and Goodbox the logistics provider. We wanted to test the concept that has been successfully proved,” a DPIIT official said.

Under Start-up India, DPIIT is now going to organise another hackathon between January 7 and 9 where it will invite start-ups and all major e-commerce players to test the concept.

“We started building the technology. Proof is already there. Now, we will ask e-commerce players to make their system compatible with this and start doing transactions,” he added.

However, the official said it is wrong to assume that ONDC is intended to disrupt existing e-commerce players like Amazon and Flipkart.

“We are not trying to disrupt anyone. We are trying to enable more participation by local kirana stores. This will give a big boost to localised e-commerce in Indian languages. The USP of big e-commerce companies will remain. The stuff that you don’t get in the local market, you have to buy from big e-commerce players. Ultimately, it will be the market forces that will decide the winner,” he added.