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?
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:
Simple way to understand:
ONDC was officially launched in April 2022, with the goal of democratizing digital commerce in India.
The idea was simple:
Today, ONDC is still growing, which means:
It is an early opportunity for MSMEs, just like UPI was in its early days.
ONDC works through a network of multiple companies.
Customers use these apps to discover products.
Businesses list their products here.
Delivery is flexible and not controlled by one company.
Simple analogy:
ONDC is to e-commerce what UPI is to payments.
One of the biggest problems for MSMEs is cost.
This makes ONDC highly attractive for small businesses.
Let’s be practical.
Amazon still has:
ONDC is growing, but still building scale.
ONDC offers real advantages:
Higher profit margins
Access to multiple apps
No platform dependency
Less “pay to win” environment
Businesses can grow their own identity
ONDC is powerful, but not yet perfect.
The real answer is not ONDC vs Amazon.
The smart strategy is:
ONDC plus Amazon
Use Amazon for:
Use ONDC for:
India’s e-commerce market is growing rapidly.
ONDC aims to:
The businesses that adopt early will benefit the most.
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:
ONDC is an open network that connects buyers and sellers across platforms.
It was launched in April 2022 by the Government of India.
ONDC offers more control and lower cost, while Amazon offers better reach.
Yes, especially through lower costs and wider visibility.
Using both is the best strategy.
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.
This article is created with AI assistance and based on current industry trends and insights to ensure accuracy and usefulness.
👉 https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2090097
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👉 https://mybharat.gov.in/Gov/Department/open-network-for-digital-commerce-ondc
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👉 https://internetfreedom.in/ondc-an-explainer/
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👉 https://www.ibm.com/think/topics/ondc
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