ONDC Set for Network Expansion in 2023
Government's network based eCommerce expansion began beta testing in a small town and is now poised to add new categories and selling scoring initiatives
The Open Network for Digital Commerce (ONDC), which began beta-testing in Meerut late last month as its first tier-2 city, is now poised to expand to new categories and create a scoring system for sellers on the networks based on select parameters including grievance redress, delivery timing and ease of operations.
ONDC CEO Thampy Koshy told a motley gathering of entrepreneurs and associations in Meerut on December 22 that the biggest challenge for the network now is to prove that the idea is workable as a lot of the platform-based eCommerce businesses would actually think otherwise. “So, it is the responsibility of businesses and network partners to make it successful,” he said.
The ONDC, which is an initiative of the Union Commerce Ministry’s Department for Promotion of Industry and Internal Trade (DPIIT) to democratize eCommerce and bring the smallest of merchants and producer-first collectives on the network so that customers have a wider choice of products, that too from local communities.
Need to shift beyond platforms
In an interview with the Hindu BusinessLine, Koshy said “we are trying to change the global thinking because people cannot think beyond platforms. But, we need to break the mindset. There is global concern about platform monopoly and India is seeking an anser through markets and technology and everyone is now looking to see how ONDC shapes up.”
Koshy also revealed that the ONDC is now in the process of setting up a dispute redress mechanism through seller-scoring based on various parameters. This system should be in place by March whereby customers would be able to see seller scores with network-wide ratings that will include feedback on transactions, fulfilment performance and grievance redress.
He said the ONDC team is working on it and the process would keep evolving based on user feedback. The network-wide scoring will serve as a self-correction mechanism, given that buyers on the network will be able go gauge performance before making purchases. In addition, there is also a dispute redress mechanism that is underway.
Onboarding continues, new domains soon
The ONDC CEO said since September, 26 entities including buyers, sellers and logistics providers have gone live on ONDC. Some of the major players include ITC, Meesho, Hindustan Unilever, ShipRocket, Delhivery and PhonePe. In addition, several start-ups, local artisan collectives and small enterprises are also being onboarded by sellers such as eSamudaay.
The approach is to continuously build the basic building blocks and get the early adopters to showcase that ONDC network is a feasible alternative to platform-based eCommerce and a viable option to bring all types of merchants including direct-to-consumer businesses into the wider framework of digital commerce and hyperlocal commerce.
Koshy revealed that each week, ONDC gets about 15 plus entities signing up for onboarding, with about 700 of them already available on the network. Half of these are currently in the stage of technical integration. In fact, in a city like Meerut, there are over a 100 merchants who came on board and are capable of transactions via the Paytm app, which claims 2 Lakh plus downloads in the city.
On another note, the network is quite gung-ho about adding new domains such as home decor, fashion, beauty and personal care, electronics and home appliances. Koshy said by middle of February, the network plans to add seven or eight new domains while also focusing on the launch of beta testing in smaller cities of the country. “Once we reach a certain threshold in terms of transactions, ONDC will go live across India,” he added.
