According to an Economic Times article dated 29 April 2024, the government has directed eCommerce giants like Amazon and Flipkart to incorporate an ONDC storefront on their homepages1. This could mean a 20x jump in traffic on the network.
ONDC has been scaling rapidly since its launch last year. In just 15 months, it facilitated more than 4.97 crore transactions2. This includes a wide variety of sectors but is notably led by mobility services, which account for over half of the monthly orders through platforms like Namma Yatri.
ONDC daily orders currently stand at 2.87 lakhs3 per day. This is relatively small when compared to giants like Amazon India and Flipkart, which record around 22.58 lakh and 22.23 lakh4 orders per day, respectively. These ONDC numbers might be small, but they show significant growth over time. This comparison also underlines the rapid adoption and the potential scalability of ONDC.
| Platform | Orders Per Day |
|---|---|
| Amazon India | 22.58 lakh |
| Flipkart | 22.23 lakh |
| ONDC | 2.87 lakh |
The recent governmental directive for eCommerce giants like Amazon and Flipkart to incorporate an ONDC storefront on their homepages is set to catalyze growth further. This move is expected to increase ONDC’s traffic significantly.
Such a significant increase in visibility and potential customer base will naturally benefit SME sellers, who are likely to see substantial gains in sales volumes and market reach. This strategic push is a part of the government's broader initiative to democratize the eCommerce landscape, ensuring fair competition and equal opportunities for all market players.
For small and medium enterprises (SMEs), ONDC presents an unprecedented opportunity. It allows them to compete on a level playing field with larger eCommerce entities without the need for a substantial marketing budget or logistics network.
ONDC’s design inherently reduces the cost of digital operations for SMEs by removing the need to tie up with specific platforms and instead, making their products available across all network-linked platforms. This vastly broadens their reach and visibility across diverse consumer bases.
Want to go live on ONDC but don’t know how, read our blog - Navigating the ONDC: Steps to Take Your Brand Live
A breakdown of the transaction data since ONDC's launch offers insights into its growing relevance in the eCommerce space. In the past 15 months, mobility services have led the way, the platform is also becoming a significant player in other sectors like food and beverages, which saw more than 57.8 lakh orders, and fashion with over 26.4 lakh orders2.
The grocery, home, and kitchen sectors are also picking up pace with more than 17.4 lakh and 13.5 lakh orders, respectively. This diverse market engagement demonstrates ONDC's capability to cater to a broad spectrum of industries and consumer needs. This provides aid not only to SMEs but also to small sellers who want to enter the market but lack the resources and cash flow to pay hefty commissions.
ONDC is shaping up to be a pivotal force in reshaping how digital commerce is conducted in India. With its innovative approach to promoting inclusivity and competition, coupled with the government's supportive policies, there has never been a better time for SMEs to join ONDC.
As it continues to grow and integrate more services and sectors, ONDC not only promises a more equitable market space but also ensures that businesses of all sizes can thrive in the digital economy. For those looking to expand their reach and tap into the burgeoning digital market of India, ONDC represents a future-proof gateway.
