Amazon has announced that it will be joining the Open Network for Digital Commerce (ONDC) in India, a government-backed initiative aimed at providing a common platform for various stakeholders in the e-commerce industry. The move is expected to increase the efficiency of the e-commerce ecosystem in India and promote fair competition among players in the sector.
The ONDC platform, which is still in the development stage, will provide a common digital infrastructure for e-commerce businesses, logistics providers, and other stakeholders, enabling them to seamlessly exchange information and data. The platform is expected to be a game-changer in the Indian e-commerce industry, which is currently dominated by a handful of players.
Amazon’s decision to join the ONDC network is a significant development, as it is one of the largest e-commerce players in India. The company has been operating in India for over a decade and has a significant market share in the country’s e-commerce industry. Amazon’s entry into the ONDC network is expected to bring more credibility and momentum to the initiative.
In a statement, an Amazon spokesperson said, “We are excited to be a part of the ONDC network in India. We believe that this initiative will bring more transparency, efficiency, and trust to the e-commerce industry, and we look forward to working with other stakeholders to make it a success.”
The ONDC initiative was launched in August 2021 by the Ministry of Commerce and Industry, with the aim of promoting a level playing field for all players in the e-commerce industry. The platform is expected to address various issues such as information asymmetry, lack of standardization, and interoperability, which have been hindering the growth of the e-commerce industry in India.
The ONDC platform is also expected to enable small and medium-sized enterprises (SMEs) to participate more effectively in the e-commerce industry. SMEs have been facing various challenges, such as high commission rates, payment delays, and lack of visibility, when it comes to selling their products online. The ONDC platform is expected to provide a level playing field for SMEs and promote their growth in the e-commerce industry.