Open Network Digital Commerce (ONDC)

Context: 

Recently, the Himachal Pradesh government started a pilot program to connect Fair Price Shops to the Open Network for Digital Commerce (ONDC) platform.

About Open Network Digital Commerce (ONDC)

• Open Network Digital Commerce (ONDC) is an interoperable network based on the BeckN protocol that anyone can piggyback on. 
• The ONDC entity, a not-for-profit company incorporated under Section 8 of the Companies Act 2013, manages and operates the ONDC Network.
• It is responsible for building and maintaining the underlying infrastructure (common registries and protocols) and defining the rules of engagement and code of conduct for the Network Participants through the ONDC Network Policy and the ONDC Network Participant Agreement.
• Seamless operations: It seeks to break down silos in digital commerce by enabling platforms of varying configurations (big or small) to connect and operate seamlessly on it.
• Network Participants: It comprises different entities called Network Participants, including Buyer Applications, Seller Applications, and Gateways that perform the search and discovery function
• Open ­network model: The government wants to change the fundamental structure of the e-­commerce market from the current platform­-centric model to an open ­network model.

Benefits Of Open Network Digital Commerce

• Small businesses: Easier discoverability, wider platform reach, platform-independent operations.
• Consumers: Wider choice, access to local sellers, price comparison across platforms.
• Government: Promotes competition, fair play, and innovation in e-commerce.
• Inclusion: Enables participation of small businesses beyond dominant platforms.
• Efficiency: Standardized operations streamline logistics and transactions.
• Value creation: Enhanced competition benefits consumers with better prices and choices.

Difference Between Open Network Digital Commerce And Existing E-commerce Platforms

News Source: PIB

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