Ecommerce Majors Amazon, Flipkart May Join ONDC Soon
- ByStartupStory | December 17, 2022
Open Network for Digital Commerce (ONDC) has set up ties with the big players of ecommerce like Amazon and Flipkart. “Large players, including Amazon and Flipkart, may soon plug into Open Network for Digital Commerce (ONDC), we have initiated conversations with all of them and initial indications are that they will join. The conversations with the top four are in various stages, and by and large they seem interested ”, DPIIT secretary Anurag Jain stated on Friday. To further enhance the efficiency of settlements on the network, ONDC has developed a framework to support reconciliation and settlements, ensuring payments are correctly distributed to the right entities as defined in the digital contracts and service-level agreements within defined timeframes.
The Additional Secretary of DPIIT Anil Agarwal said “The ONDC is expected to reach a critical mass over the next two years”. He excluded the possibility of taking any incentives or subsidies from the government to onboard any entities . Currently, the e-commerce penetration in the country is roughly 5-7%, Jain said, pointing out that a large number of sellers and buyers remained outside of the online ecosystem. As of now ONDC has been put to test 85 cities and plans to increase its reach to smaller towns and onboard local kiranas and merchants.
ONDC is also undertaking several new initiatives among which a one-time incentive programme was rolled out starting Thursday. “Through this one-time incentive programme, the aim is to scale our current network of 700 plus merchants across India in F&B and groceries to more than 20,000 merchants across various categories,” ONDC managing director and Chief Executive officer T Koshy said.
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