A New Chapter in India’s E-commerce Story
For years, selling online in India meant choosing platforms like Amazon or Flipkart.
They gave small businesses access to millions of customers, but also came with challenges such as high commissions, intense competition, and limited control.
Now, a new system is emerging — the Open Network for Digital Commerce.
Launched in April 2022 by the Government of India, ONDC is being seen as a game-changing shift.
It is often described as:
“the UPI moment for e-commerce”
But the real question is:
Can ONDC actually help small businesses compete with Amazon?
What is ONDC and Why It Is Different
ONDC is not an app or a marketplace.
It is an open digital network where buyers and sellers connect across multiple platforms.
Instead of being locked into one platform like Amazon, businesses can:
- List products through one system
- Sell across multiple apps
- Reach customers without platform dependency
Simple way to understand:
- Amazon is like a shopping mall
- ONDC is like the internet
When Was ONDC Launched and Why It Matters
ONDC was officially launched in April 2022, with the goal of democratizing digital commerce in India.
The idea was simple:
- Reduce monopoly of large platforms
- Empower small businesses
- Create an open and inclusive network
Today, ONDC is still growing, which means:
It is an early opportunity for MSMEs, just like UPI was in its early days.
Who Are the Real Players Behind ONDC
ONDC works through a network of multiple companies.
Buyer Apps (Where Customers Shop)
- Paytm
- Magicpin
- PhonePe
Customers use these apps to discover products.
Seller Platforms (Where Businesses Join)
- GoFrugal
- Zoho Commerce
- eSamudaay
Businesses list their products here.
Logistics Partners
- Delhivery
- Shiprocket
- Dunzo
Delivery is flexible and not controlled by one company.
Payment Partners
- Razorpay
- Paytm Payments Bank
How ONDC Works (Simple Flow)
- Seller lists product using a seller platform
- Product becomes visible across multiple buyer apps
- Customer places order from any app
- Logistics partner delivers the product
- Payment is processed
Simple analogy:
ONDC is to e-commerce what UPI is to payments.
ONDC vs Amazon: The Core Difference
Amazon Model
- Centralized platform
- Seller depends on Amazon
- Limited control over visibility
- Algorithm-driven sales
ONDC Model
- Decentralized network
- Seller independence
- Multi-platform visibility
- No single controlling authority
Cost Comparison: A Big Advantage for ONDC
One of the biggest problems for MSMEs is cost.
Amazon
- Commission can go up to 25 to 40 percent
- Advertising often required
ONDC
- Lower network fees
- No forced advertising
- Better margins for sellers
This makes ONDC highly attractive for small businesses.
Reach and Trust: Where Amazon Still Leads
Let’s be practical.
Amazon still has:
- Massive customer base
- Strong trust and brand value
- Efficient logistics
ONDC is growing, but still building scale.
Why ONDC is a Game-Changer for MSMEs
ONDC offers real advantages:
Lower Costs
Higher profit margins
Wider Reach
Access to multiple apps
Independence
No platform dependency
Fair Competition
Less “pay to win” environment
Brand Building
Businesses can grow their own identity
Challenges of ONDC (Reality Check)
- Still in early stage
- Limited awareness
- Logistics consistency evolving
- Technical onboarding required
ONDC is powerful, but not yet perfect.
Smart Strategy for MSMEs
The real answer is not ONDC vs Amazon.
The smart strategy is:
ONDC plus Amazon
Use Amazon for:
- Immediate sales
- Large customer base
Use ONDC for:
- Long-term growth
- Better margins
- Brand building
Future of E-commerce in India
India’s e-commerce market is growing rapidly.
ONDC aims to:
- Break platform dominance
- Empower small sellers
- Reduce cost of doing business
The businesses that adopt early will benefit the most.
Final Verdict
ONDC will not replace Amazon overnight.
But it is changing the rules of the game.
For the first time, small businesses have a real chance to compete.
The winners will be those who:
- Adapt early
- Learn the system
- Use both platforms strategically
FAQs
What is ONDC
ONDC is an open network that connects buyers and sellers across platforms.
When was ONDC launched
It was launched in April 2022 by the Government of India.
Is ONDC better than Amazon
ONDC offers more control and lower cost, while Amazon offers better reach.
Can small businesses benefit from ONDC
Yes, especially through lower costs and wider visibility.
Should I choose ONDC or Amazon
Using both is the best strategy.
About Author
Tabrez Khan — Entrepreneur and founder of BusinessZindagi, dedicated to helping Indian MSMEs and small business owners grow through practical insights, real-world experiences, and actionable business knowledge.
AI Disclaimer
This article is created with AI assistance and based on current industry trends and insights to ensure accuracy and usefulness.
🔗 Sources & References
1. Official ONDC Website (Core Understanding)
2. Government of India (PIB) – ONDC Initiative Explained
👉 https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2090097
✔ Confirms:
- ONDC is a Government of India initiative
- Built on open network protocols
- Designed to enable exchange of goods and services digitally
3. ONDC Launch & Objective (DPIIT – April 2022)
✔ Confirms:
- ONDC launched in April 2022
- Initiative of Department for Promotion of Industry and Internal Trade (DPIIT)
- Focus on democratizing digital commerce
4. Government Portal (MyGov / MyBharat)
👉 https://mybharat.gov.in/Gov/Department/open-network-for-digital-commerce-ondc
✔ Confirms:
- ONDC aims to enable MSMEs, sellers, and consumers
- Focus on inclusive access to digital commerce
5. ONDC Explained (Independent Tech Insight)
👉 https://internetfreedom.in/ondc-an-explainer/
✔ Confirms:
- ONDC is a network-based model
- Buyers and sellers can transact across platforms
- Not restricted to one app
6. Deloitte Insight (Industry Perspective)
✔ Confirms:
- ONDC aims to democratize e-commerce
- Focus on reducing platform dominance
7. IBM / Industry Explanation
👉 https://www.ibm.com/think/topics/ondc
✔ Confirms:
- ONDC connects buyers, sellers, and platforms
- Built as an open digital commerce network
