The Truth About ONDC in India
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- Опубликовано: 17 июл 2024
- Check out Dukaan if you are planning to take your business online - mydukaan.io/
In this video, we take a look at what ONDC promises and how this is going to impact D2C brands in India.
0:00 Intro
3:39 What is ONDC?
6:05 How Dukaan is helping D2C brands?
7:45 How ONDC will change e-commerce?
9:19 Risks with E-commerce giants
10:35 Future of D2C in India
13:15 Challenges with ONDC
16:07 Conclusion
ONDC is short for Open Network for Digital Commerce, it is an initiative by the government of India to promote an open network for exchange of goods and services over the Internet. This basically means that the government is trying to create a level playing field for all the small business owners in India. ONDC is promising same power and features to these small owners that big e-commerce companies like Flipkart and Amazon have.
Today if you want to sell products online, you just have two options; either to start your own website and sell it there or register on platforms like Amazon and Flipkart and sell it there. The issue with first option is, it requires knowledge of tech - to build a website, inventory management, hiring a delivery partner, payment partner etc. This is a big hassle.
If you register on Amazon or Flipkart, you will have to pay hefty fees to them every time you sell something. This commission is generally in the range of 20-30%. Many people are still paying this commission because these platforms provide all these facilities to them, like storing their products, managing the inventory, delivery of the products, payment etc. But the issue with this is, this is limiting the growth of these small players. These Foreign brands have monopoly over Indian e-commerce and this is one of the important reasons for introducing ONDC.
ONDC is trying to become UPI for India's commerce sector. ONDC could be a revolution for Indian D2C brands and it will solve two of the major problems D2C brands face in India. Keeping customer-acquisition-cost (CAC) low and efficient inventory management and customer experience, which includes order tracking, post order issues like return, replacement, grievances, or feedback that can make or break their trust in your brand.
ONDC can be a game changer for these small businesses as now you won’t have to pay anything to reach all these customers. All you have to do is list yourself with ONDC and customers across the country can find you from any application of their choice. The government has compared this with ‘hypertext transfer protocol for information exchange over the internet’ where you could reach millions of customers without spending anything. Next big issue right now for D2C brands is efficient inventory management. ONDC promises to solve this by standardizing operations like cataloging, inventory management, order management and order fulfillment. This would mean that as a small seller, you could use any ONDC compatible application and you don’t have to worry about managing everything on your own.
There are many challenges with ONDC as well, which needs to be addressed. Firstly, data-privacy concerns. Now this is a concern involved with every of the government's massive projects; something we recently witnessed in the case of Aadhar, where the government itself warned people that their Aadhar data could be misused. In case of open commerce, the data could be even more sensitive in nature; your bank accounts, credit card number, addresses, if gone into wrong hands could pose a big threat. Next major challenge would be to maintain quality or the product. Currently, the quality control is the responsibility of these platforms like Amazon and Flipkart, wherein if you receive a fake product, you could return it and ask for replacement or even refund. In the case of ONDC, there has been no addressal of this issue; will there be inbuilt technology to deal with this or will these companies who plan to work with ONDC, make sure of the quality control.
It will be interesting to see how ONDC unfolds in India. An open network for doing business will certainly give confidence to millions of retailers and small brand owners to come online and do business and we could see thousands of unicorns in the future just from taking this direct-to-customer approach. However, we as buyers have become very comfortable and spoiled with the services provided by these e-commerce giants, from order tracking to return and refund, we tend to get aggrieved with every small issue we face. And this would be a challenge for ONDC to solve.
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#startup #ondc #d2c
Check out Dukaan if you are planning to take your business online - mydukaan.io/
If the dukaan plug during the middle was a paid promotion, better to mention that explicitly in description. Just a thought.
@@aakashdusane exactly!
Try LMO
You should plan on revisiting ondc topic since its 1+ year now
Can you make a video reporting on how the pilot is actually going on. Ondc is said to be launched already in few cities, I want to know from people who are actually interacting with ondc in these cities on how the experience so far is
It isn’t available to public yet. They’re testing it in limited users. Hope it would be available to public very soon.
@@rashidabdulla how soon ?
like a year or so ?
@@anikets4699 in pilot cities you can expect it in less than 3 months.
It takes years, like upi
I like the predictions at the end. ONDC might end up benig the lower quality versions that's why branding + product will be important.
Let's see! It will be very interesting to see how this takes shape - UPI was so transformative for India's digital payments space, and in so many consumer-positive ways. I just hope ONDC achieves the same, and doesn't make things more complicated/confusing/expensive for consumers. -Caleb
UPI was a infrastructure, it doesn't apply here. When I heard that anyone could sell on it, I remembered that cheap made in India cord extension that burnt my PC. Since then, I always bought stuff made by respected companies, even if they cost more.
This can be solved by ONDC official aka government needs to thoroughly check the platform they are accepting on the network but there is still risk in that and govt can't go through every platform and that too thoroughly, so there is still much needed here
@@Dr.Kraig_Ren Yeah , i remember american chocolates ordered in 1990's used to melt before they reached me. Since then no more fancy , third rate american goods for me , with ondc i can kick any number of american providers from bed bath and beyond to walmart and redistribute the profits among local manufacturers . You can continue paying 500 dollars for a cord extension until that's all you can afford before you sell your house to meet your food and petrol bills.
There is a strong chance it will end up being like ebay.
The issue of fraud won't happen in the long run as there will be ' Reputation ledger' for both buyers ans sellers and it will be attached to them irrespective of any platform they use.
Then India will become a fulltime dictatorship.
What about fake orders and reviews which can increase its reputation?
It won’t happen. It’s designed to prevent it in first place
Researching for more than 7 months Finally Cleared 80% confusion 😕.
Thanks A lot ..
Back in college, I ordered one pendrive from PayTM Mall because it was cheaper there. The delivery executive called me but I asked him to return it. He said okay and later marked it as delivered. I tried to speak with the customer care but they didn't do anything. Their best advice was for me to ask around if someone else took it!
That was the last time I used PayTM Mall.
Companies like Amazon, I know that if the product is not good I can return it. If the product is not eligible for returns, Amazon even refunds you money and let's you keep the product. I would not have the same trust with other companies, so I'd never use anything else other than Amazon or Flipkart. And would definitely not use others when the product is expensive.
understand. but govt. know everything. i am sure ondc will provide best solution. look at UPI
There would be o guess rating system for every partner involved be it courier partner or seller or even customer. So you would be able to rate them if services are not satisfactory
Agreed. Similar experience happened for me with snapdeal. But after a lot of complaints , I was able to get a refund. But one day Amazon was not able to deliver my package because of damage in QR code and delivery guys were helpess and they returned it. Same product cost 40RS more next day. But they extended my prime membership to +3 months for this
That's not the thing here.. Think about the small merchants who are running in loses dide to monopoly
People please support home grown startup more....... Amazon won't fund next line of startups in India
ONDC and UPI are amazing 🤩.
It changed my perspective that a government should be sitting on a fence, I now think that government can and build neutral platforms and standards when private players can't come together and build one.
I don’t know if I’d call it neutral - GOI has a clear agenda, which is to benefit India’s economy and small sellers, and to weaken monopolies. Big companies also have their agenda. Only an open-source, democratic kind of system would be neutral, but web3 isn’t mature or stable enough yet to bring such innovation on such a huge scale, plus without the support of GOI you’d have a very low adoption from the population, as UPI probably wouldn’t be a supported mode of payment.
I’m just really hoping ONDC makes thing BETTER. I don’t want it to kick out the existing powers (Amazon, Flipkart, and other big e-commerce players) and replace them with a hoard of the most ingenious sellers who are able to manipulate and control ONDC using bots and cheap/fake products. In such a case, big e-commerce players are the lesser evil - I hate shopping in Indian offline markets because of the scammy, manipulative techniques those guys use, and I really hope ONDC doesn’t become the online version of that, with no viable option left for the “department stores” mentioned in the video. -Caleb
@@backstagewithmillionaires only future will tell what happens.
@@backstagewithmillionaires I mean improving India's economy and preventing monopolies is as good as a goal gets for the government. Now as to your concerns, UPI didn't kill payment apps. People still prefer either Google Pay or Phonepe or whatever. ONDC will be the same. No matter how much technology you bring in, commerce at its most basic really is about customer satisfaction and I think scammy brands won't last very long especially with an open network where everybody has their details like GST registration number etc
@@backstagewithmillionaires we should kick amazon flipkart. Why not? If we can have good home delievery anyways. We don't need them creating monopolies here.
@@backstagewithmillionaires Make a follow up video.
You guys seriously deserve more subscribers for this kind of high quality content, keep it up bwm team !
The best ad-plugging I have ever seen in my whole utube life.
Why is this channel so underrated? Such a blend of innovative thoughts and research!!
The only channel i dont skip ads(small boost I can afford for now),great content. 👍
I really appreciate your video and all the pros and cons of ONDC. Thank you BWM, for making the concepts clear. I would love to know and watch a video In which we could talk about improving ONDC Network and making it threats proof.
Thanks for explaining in detail, I was confused what is the process, pros & profit making
Very good analysis with pros and cons I never heard anyone discussing about
Forwarding looking intiative by Government of India towards "vocal for local" and " Digital India".
It's naive to assume that ONDC will not challenges but it will evolve into what Indian ecommerce need...
Still very confusing. If ondc is just a network, who takes the pictures and presents the goods. If its the sellers website then the seller has to pay to develop a website. If this is done by the Indian government, then how do they charge for this. Amazon/Flipkart are masters of search and presentation. Will this be like ebay where you take a picture and put it up for sale. eBay failed in India, and is slowly dying globally. eBay had so many suppliers and customers they could not take advantage of scale, and it became too expensive for sellers.
You are way off on the whole copy thing and don't report properly on supply chain. Most brands don't make their own products, but go to huge suppliers that make products for many customers with their customisation. Sony TV's are built on the same product line as lg, but will have different electronic circuit boards and plastic parts. If Amazon wants to copy Sony they don't start their own factory, but rather go to the company that builds Sony TV's and asks for their version. If they comitt to a certain volume they will get an Amazon brand, that comes from the same factory with similar parts and reliability, but maybe less premium features. Very few high volume consumer products come from separate factories. Even iphones come from Foxconn that make many other phones for lots of other customers using very similar parts. Amazon has no interest in copying products, but they will order a similar product from a supplier with Amazon brand. Amazon has their r&d brand lab 1, that makes the fire, Kindle and Alexa products but these are not copies.
India government don't want companies like Amazon to rule over Indian market by surpress small business 🧒
@@saketghosh9359 That's why they allowed Walmart to purchase Flipkart, and Amazon to get big bizar. Hmmmm. Not sure how this exchange will change things but it will be good to see. UPI has been hijacked by phone pe (walmart) Google pay and Amazon pay, with indian startups like Paytm being forced out of business. Without proper oversight this will only encourage online shopping which will primarily help Amazon and Flipkart
From what I understand it will simply be an open database with API support that anyone can plug into.
Love your videos man
Keep the good stuff coming up!
Fantastic. I liked the presentation. Hope ONDC will grow as fast as possible to benefit small entrepreneurs, farmers, consumers, connecting locals.
What a great research by BWM team! Much appreciated 👍🏻
Excellent stuff !!..... Very well researched. 👍 Hope to see more videos on this topic.✴
What a wonderful intro ...👌👌 Amazing storytelling.
As always loved your analysis.. keep going.
6:24 Ayo,has someone listed a woman ? 😂😂😂😂
Exactly it's disgusting
Disgusting
Good job guys u have covered everything .... Literally everything on this subject
I look forward to watching this in a few hours and seeing whether it demystifies ONDC for me 👍 😀
Let us know if it does Aritra! 🤞🏻 -Caleb
Just the smoothest brand plug in ever!!
The benefit will be i won't have to download all the different applications....just one app which is registered with the ondc and i can then access all the products irrespective of where the seller is registered..
Wow this going to be revolutionary.
ONDC
Fantastic video mate!
Big players would tarnish and try to sketch a negative picture out of it. So that their customer base is not shaken and they continue with unethical business.
Great content! Never the thought of ONDC this way!
Absolutely brilliant video Caleb. Got a lot of insights from this.
What an explanation!!🔥💯
Superb Video! Thanks!!
For first 7 minutes of the video, I was like "Is this video about explaining ONDC or promoting Dukaan?"
I didnt even realise that this video was sponsered by Dukaan for a long time
Yeah, dukaan advertisement was added in so well I thought it's part of the video altogether
i still don't get it, so basically what you're saying is that this ONDC thing is an open source platform like UPI and hence there will other apps which will be ONDC enabled, so which apps will be the ones using ONDC?
In relation to your concern related to bots recently govt has meeting with Amazon Flipkart etc for identification of bots and removal. but how the same is gonna happen will be nice thing to watch
Strict KYC will solve this to a good extent.
You are doing great job...
This was an amazing video bro loved it
im sure there will be some qc measures. they must have thought about such issues. nandan nilekani has his as well as govt. of india goodwill on the line.
Thanks for your research, prediction & authentic content!
I saw multiple Indian RUclipsr just copied content & repeat bla bla bla... without giving much details (Except few).
just stumble on your content . love it. give me your background . Are you an American having a startup in India?
The buyers used to Amazons / Flipkarts are hooked to that.....Anything now, will take time to be accepted. But from the sellers side ONDC will be a changer, though underwhelming in the immediate.
😵 your damn cool man
Gave me new perspective of ONDC
Greatttt Video it was, love from India
Now I crave banana chips , and to buy it I have to travel far :(
Damn you Caleb for that intro
There is already such a system in place, they're just expanding it. Its called GeM , Government e Market place. All gov tenders and purchases are being bought through that portal. They're taking it to the general population.
your prediction is nice and insightful
What if the seller has to pay 5lakhs in advance like a deposit and then only he can be added or what if as soon as a product gets sold , seller has to keep the same amount as deposit and once customer received successfully it then only the deposit will be released
If u r buying for local sellers who is in and around ur locality then u can still take charge of the situation.. it's like going back to old ways of shopping in bit more digital way.. if ur buy from different states then there is high chances that you might just robbed and there is not to help u.. hope consumer court would address these cases.
I recommend trying LMO Merchant for Merchants and LMO Shopping for Consumers.
This won’t work for sure. It will become like Meesho with lot and lot of products but with no reviews and quality assurance. People prefer quality over quantity and who maintains data centers, websites and apps and who will be the moderators to review photographs and product descriptions and how can they take action. If control goes to government then due to corruptions and bribes low quality products make it to page 1
🤣why will there be no reviews?
Ondc will provide their guarantee along with the platform. Ondc will link logistic support too
Ondc is in testing phase.
Time will tell everything
Can you make a video on B2B version of ONDC??
Awesome content🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥
Nice Ad for Dukaan
Still not clear. Will it be an API for cross platform products?
*Can ONDC provide a after sale service which will have strict rules and will be compulsary for all platforms.* Making this will also prevent unwarented and fake products.
Well the all the cons of ONDC can be made into pros
If there are frauds from the small brands with customers on ONDC , the Govt should set up a Customer Care office as part of ONDC which will take consumers complain & use Govts Law & Order to punish the seller take charges & give the refund to customer of the said item so this Govt Arm can play great Law Enforcement role in all transactions
Rather then becoming a place for low end products it will be platform of trust & justice ⚖️
Hyper Local Delivery & Supply Chain Management is a future of Ondc.
This video seems like an indirect advertisement for "Dukaan". A disclaimer for the same could be really helpful.
Son you are nice observation
It may be beneficial for smaller stuff like milk, chips, cold drinks, mobile covers and some other smaller stuff. It won’t make a difference in more expensive category. People won’t take the risk.
This is the first time I have seen you share a negative opinion. I love it.
This is good news for local sellers no more monopoly.. without roaming and wasting time and petrol you can trip ur location for product and buy from local sellers who are competitive. UPI has been blessing for people who don't trust third part apps for payment .. Indian govt is really working in right direction ⬆️..
It's high time for Indian govt to diversify thier revenue. We are still dependent heavily on oil tax and gst
I love your research ...as much as I love Brahmastra trailer
Will The big giants will join ondc ?
My wife bought an electronic item from a fraud company that showed in Google first page. So how does ONDC stop that?
It doesn't Aniket. In fact, as I pointed out in the end of the video, it might actually make such cases more common (unless there are strong filters in place to block fraud). But I worry that if Google can't stop them, nobody can. -Caleb
When this plan was announced I wanted to learn more about it. I even read a couple of articles on Livemint and Swarajya but I still wasn't sure what it was.
Thanks for this video guys.
Even after ONDC e-commerce giants will still have data to copy products and make their brands. They will still be able to under cut any competition. What's the difference then?
Bro think about it help india not usa
Thanks
Wow, thank you so much Chaitanya for the financial support 🙂 sorry, RUclips only shows us Super Thanks on desktop, not mobile which is where I initially saw your comment. I also see that you're a new BwM member, so glad that you've joined us on our mission to bring the best English (and hopefully someday other languages too) startup content to Indians and the world. Your support means a lot to me personally, and to the rest of the BwM team. -Caleb
Is there a merchandise store for BWM ?
is Meesho on ONDC?
hey guys I wanna make video essays like you, launch a course please. like how to do research on a topic, script writing and editing.
Suppose in traditional store one sells clothes. Now the clothes they buy are from different suppliers. If they buy 10 types of tshirt which range between say 500 to 1000INR and suppose the average price is 700. Due to ONDC won't the supplier directly sell to the customers? Maybe at an average price of just 500? Won't the market become a perfectly competitive market? Also in the last part of the video you mentioned amazon launching a premium site and ONDC being the power quality site. Things become complex hereto. Don't you think ONDC will end up becoming a stock market thing where prices are going up and down continously? Also how will ONDC vompete with the data Amazon flipkart has? Or the management they have or the trust they have built? There are multiple dimensions. ONDC has to face many challenges ahead.
I mean ONDC is great idea but its more innovation, like the network could be built on a blockchain but the government is seemingly not putting such efforts in blockchain R&D. ONDC could end up being a gimmick like snapdeal and left behind working in shadows and the big players still getting out what they want.
Could u please explain ondc in much simpler words and sentences.
Thanks
I mean i get it amazon & flipkart are their for money making business, & they are use weird strategies to do so, but i will tell you one thing they are good at what they do, i mean business is not only abt selling things online but the credibility of the website & the platform they are sold on
Actually first Government of India should fix income tax portal. Even the site bug is too cumbersome even filing tax takes more time.
GOI should not compete with china first fix the fundamentals then go for big.
let's see what happens. I mean ondc is headed by Infosys co-founder. He might figure it out.
Correct spelling in the first paragraph, you have written ONCD instead of ONDC :)
Can you share timestamp? -Caleb
it's on description not in the video
Fixed 🙂 -Caleb
well i dont see many people using it and its been over 10 months
It will happen, these things take time. UPI didn't become popular on day 1 either. -Caleb
I love hot chips. Haven't eaten in years as i quit drinking long ago.
Unfortunately this will not serve well for local stores unless they have a really good catalog/inventory management solution. All apps that claim to help local stores today still have major problems when it comes to catalog/inventory management deeming it still unusable. We've been only focused on solving this problem for a very long time now. Local stores will be able to digitise their business in the best possible way, when we lauch our solution soon 🤞🏻😄
is this a video sponsored by dukaan? if it is, It should be mentioned clearly
Appreciate
😊👍
😊👍🏻 -Caleb
How will Ondc will deal with fraud ?
I'm afraid that it might become eBay down the line..!
what was that expression at 3:42 ?
"Right off the bat" - it means immediately, at the start. I think it's a term from cricket/baseball, where the batter needs to make a decision as soon as they hit the ball. -Caleb
make vedio about vedanta groups and Anil Agarwal
Please make tamil channel like think school - tamil
ONDC if implemented like UPI will be a boon for kirana stores who can not spend money and host their products in websites and manage them. Big step forward in e commerce inclusion of small players to break monopoly of AMAZON and FLIPKART. It will have buyer bias and of course we do not go to Amazon for purchasing everything. Most of us are used to buying things in around our place of stay from reliable shops who deliver quality products. It will benefit such sellers a lot. We order on WhatsApp from nearby shops. Once we receive the items we settle it with upi pay like gpay,phone pay etc. Millions of such transactions also take place day. We accept, return items and even reject items if they are as per our requirements. We settle payments only for the right items in our order. ONDC will help such shops and sellers.
That means there are roummers that amzon and flipkart will end...👍
India is price sensitive market....Meeso has lower service than flipkart or amazon...but meesho has got record orders becuase price is cheap since seller commision is zero...Let me tell you ONDC will change the market for amazon or flipkart.
OK Bradhar good morning meku
Love this video this is the reason why I voted for modi
comment.
Pretty sus that he didn't mention the sponser of this video
Your thumbnail now looks less professional and i miss to click on it. Don't know, even if i see it i skip it..
There is also another risk to it. Amazon and Flipkart have lots of money to burn and they keep their prices of products low by just burning money. This might compel others in ONDC to sell similar products at the same price.
Are bhai amazon aur flipkart k pass paisa hain to ondc ko sarkar ne khud banaya hain uske paas pure desh ka dhan , paisa hain . Sarkar se nhi lad sakti
This will change the entire story of e-commerce operations and marketing!