ONDC- An Dream initiative to transform India.
ONDC stands for Open Network for Digital Commerce.
This Platform Designed by Government of India to cut the monopoly of E-commerce giants and boost the trade of small businessman specialy who are living in Rural areas.
Why this Initiative taken by Government of India?
E-commerce giants like Amazon and Flipkart(WALMART) holds 60% of market share in E-commerce industry and no doubt that they have monopoly in this Domain but there comes a problem with monopoly-
1) Predatory Pricing- This term denotes that someone keeps the price at such lower level that it keeps the competitors business a loss making or he have to leave the market because he cannot keep the price at such a lower level for long time.This is what exactly happening with the small sellers and it indirectly is a burden on India.
2) Currently there are over 4000 small and big e-commerce companies in India,500 logistics companies to deliver goods,and more than 20000 entities including Travel and Hotels that provide services through e-commerce.The Indian e-commerce market is expected to grow to USD 200 billion by 2026.
Why this may become an Revolutionary Change in India E-commerce industry?
1- This platform will provide ratings for sellers,Buyers and logistics or Delivery person compared to present e-commerce giants . For example- lets say a Buyer is creating a mischief by alleging an seller that he has sent an damaged product though it is not and he claims refund and the process repeats itself by the same buyer to different seller so all seller if they rate the buyer low then the ranking may impact other sellers to sale the product to that buyer and buyer also will get an fair treatment for his mischief.
2- As we already Discussed that Pricing is one of the main Causes but here the platform is open for all and no monopoly of Pricing and therefore sellers may get less Ruined.
3- This Initiative is Connected to promotion of “Vocal for Local”.As buyers and sellers connected online in an open network so we can see Local buyer and sellers and from this idea we can make our village or town grow and indirectly make our country grow.
Let’s Discuss some Issues here-
1- The technology Needs to be Explained to smallest buyers & sellers who are not literate and this can be truly cumbersome process.
2- Some reluctant buyers and sellers wont still able to change themselves to avoid and still accept cash.
3- Though this is not an Issue ,but this can be issue as Government of India needs extensive Campaining otherwise this model not work in villages and it may live upto Tier-1 cities.