The ONDC might be a revolution in e-commerce🤯Like UPI was in payments systems📈
As ONDC completes one year,
Here's a thread on how it can change our lives🧵👇
1/n
As ONDC completes one year,
Here's a thread on how it can change our lives🧵👇
1/n
📌What is ONDC?
ONDC stands for Open Network for Digital Commerce
Imagine,
- Amazon
- Flipkart
- Zomato
- Swiggy
- Grofers
All on 1 platform- Yes, that's ONDC
It is aimed at eliminating the dominance of E-commerce platforms which charge exorbitant commissions from sellers
2/n
ONDC stands for Open Network for Digital Commerce
Imagine,
- Amazon
- Flipkart
- Zomato
- Swiggy
- Grofers
All on 1 platform- Yes, that's ONDC
It is aimed at eliminating the dominance of E-commerce platforms which charge exorbitant commissions from sellers
2/n
📌How will it work?
- The price of a product can be compared easily via an ONDC app & buyer can avail the option with least price
This is similar to what Trivago does with hotels 👇
3/n
- The price of a product can be compared easily via an ONDC app & buyer can avail the option with least price
This is similar to what Trivago does with hotels 👇
3/n
📌The most important pillar of e-commerce is logistics☝
Amazon/Zomato do it for their customers
Who will do it here?
Tie up for logistics will be done with 3rd parties
✔Shpirocket & Delhivery have already partnered with ONDC
Keep reading for startling facts👇
4/n
Amazon/Zomato do it for their customers
Who will do it here?
Tie up for logistics will be done with 3rd parties
✔Shpirocket & Delhivery have already partnered with ONDC
Keep reading for startling facts👇
4/n
📌The idea is to democratize e-commerce by using several players
These platforms like Amazon, Flipkart, Zomato etc. charge 12-35% of transaction from sellers as commission
While, ONDC caps this commission to 3%🤯
5/n
These platforms like Amazon, Flipkart, Zomato etc. charge 12-35% of transaction from sellers as commission
While, ONDC caps this commission to 3%🤯
5/n
📌Need for ONDC?
A. Ease for Small Retailers
- Small retailers won't need to spend thousands of $$ on building online stores
- It brings the benefit of same day/30-min delivery without cash burn as big e-commerce players
6/n
A. Ease for Small Retailers
- Small retailers won't need to spend thousands of $$ on building online stores
- It brings the benefit of same day/30-min delivery without cash burn as big e-commerce players
6/n
B. Better Price Discovery for Consumers
- It will help in making economical choices
- The prices are often loaded with platform commissions
Like, if I can sell at ₹100, But Amazon will charge ₹30, then I'll price the product at ₹130
7/n
- It will help in making economical choices
- The prices are often loaded with platform commissions
Like, if I can sell at ₹100, But Amazon will charge ₹30, then I'll price the product at ₹130
7/n
C. ONDC will put all the following practices to rest
- Restricting you to list on other platforms
- Charging heavy commissions (up to 35%)
- Placing your products lower if you don't spend on ads
8/n
- Restricting you to list on other platforms
- Charging heavy commissions (up to 35%)
- Placing your products lower if you don't spend on ads
8/n
Is it so simple?
For high-ticket items like phone, you trust the e-com platforms, but transactions on food delivery app are more driven from the restaurant's end
Cracking foodtech would be easier than e-commerce
9/n
For high-ticket items like phone, you trust the e-com platforms, but transactions on food delivery app are more driven from the restaurant's end
Cracking foodtech would be easier than e-commerce
9/n
Also, what about refunds in case of bad deliveries?👇
- E-commerce companies have undertaken the burden of bad deliveries and keeping the retailers in check
- But if there'll be no one in ONDC to take care of bad deliveries and returns, it might lose trust
10/n
- E-commerce companies have undertaken the burden of bad deliveries and keeping the retailers in check
- But if there'll be no one in ONDC to take care of bad deliveries and returns, it might lose trust
10/n
6/ Who are the people developing it? 🤼
A. Mr. T Koshy is the CEO at ONDC
He has been a Partner at EY and Exec Director with NSDL
B. Mr. Nandan Nilekani, is an advisor for the ONDC
He is a co-founder of Infosys & is known for his successful role as UIDAI (Aadhar) Chairman
11/n
A. Mr. T Koshy is the CEO at ONDC
He has been a Partner at EY and Exec Director with NSDL
B. Mr. Nandan Nilekani, is an advisor for the ONDC
He is a co-founder of Infosys & is known for his successful role as UIDAI (Aadhar) Chairman
11/n
What is your take on ONDC?
Do you think it is the UPI moment for e-commerce retail?
Do you think it is the UPI moment for e-commerce retail?
Did you find this thread helpful?
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