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  • 15 Jun 2022

  • 15 Jun 2022

ONDC: UPI of E-Commerce

When UPI is about to go Global from Local, India has brought innovation into the digital world. UPI has achieved the peak of success in bringing change in the payment system. Similarly, ONDC would bring change to the E-Commerce platform.

The Department of Promotion of Industry and Internal Trade (DPIIT) has brought its ONDC project, by appointing an advisory committee, which aims to stop the digital monopolies.

ONDC (Open Network for Digital Commerce), is an open technology, which will digitalize the business system and remove the monopoly of E-Commerce.


It aims in promoting open networks developed on open-sourced methodology, using open specifications and open network protocols depending on the platform.

It will educate the enterprises, and also introduce online solutions. Logistics-related proper infrastructure will also be ensured.

The Government aims to bring around 10 Lakh businesses online at one platform, and connect them will 9 crore buyers, and also cater them with 35,000 pin codes till 2027.

Relation Between UPI & E-Commerce

A UPI ID marks its importance in providing the facility to merge multiple bank accounts on the platform, and also the facility of doing instant money transfers between two banks. It keeps the data confidential and works 24 x7. It provides the advantage of using it to make a payment at any time. Its main aim is to simplify, facilitate, and digitalize digital payments.

As UPI has digitalized the payment system, ONDC is also expectedly made to digitalize the E-Commerce business with the open network and remove the monopoly of E-Commerce.

The main aim of UPI was to include maximum people in digitization. Similarly, ONDC will provide a digital platform to all small, medium, and large sellers.

Its privacy system keeps all the bank-related data, and other personal data confidential. Similarly, ONDC is also going to adopt several key principles of data privacy. System where transaction data will be stored only with buyer and seller applications, and will not even be visible to ONDC. It will not view any users data. Personally Identifiable Information (PII) of the user and competitive data will be protected from third-party access. All policies relating to this data exchange will be consent-based, and the data will be used for commerce purposes only.

Main Concept

ONDC, working model

As with the help of UPI, we can go anywhere, shop, scan, and pay without any burden, same like that the online order system will go on with such an easy and fast procedure.

ONDC will be an open technology, which will make different digital commerce stores discoverable on all the apps linked with it.

Many people think that the platform will stand in competition with Amazon and Flipkart, but this is a misconception because this company is a revolutionary technology, which is similar to UPI in the commerce stream.


If a person has to buy a certain product, then he can directly search with the product name and get results, which will tell about the shops near the person location that sells that certain product. He can get that certain product from GooglePay through UPI, which does not charge any cost. Because the shopkeeper has registered his shop and business for free and gets the payment free, as it comes from UPI.

The order will directly go to the seller app, which will send a notification to the seller about the order. The seller will approve the order, and the delivery partners will get linked with it, and finally, the order will be delivered to the buyer.

Earlier, many shopkeepers did not use to do online marketing, because of insufficient knowledge, cost, and technological barrier. Even today, many shopkeepers have to face many hindrances to opting the online selling, but ONDC will help to remove this hindrance. The platform has removed the biggest issue of cost that has to be paid online, and the technological barrier.

Unified Rating System

ONDC, Unified Rating System

1. Ratings for Services

It will also include a unified rating system, which will be shown throughout all the platforms. When the customers will rate with one star or four stars then it will be shown the same on all the other platforms. This does not require the seller to get the ratings everywhere.

2. Ratings for Customers

It will also tell about the ratings of the risky customer, like those who are always dissatisfied with the products, and return it. Here the sellers will get an option to cancel the order.

3. Ratings for Delivery Partners

Sometimes delivery partners result in a delay in shipment, delivery in unexpected conditions, and poor customer service which makes the customers unhappy. Here the seller can rate the delivery partners, which will remove the above issues.

This will provide an opportunity for those who want to sell products and services, and does not have their own shop. The people will be able to sell their products from anywhere, and the buyers will get it from anywhere.


ONDC, Benefits, Seller & Buyer


Ease of Doing Business

Ease of Doing Business (EDB) indicates that making the business faster, easier, and competitive, which will bring inclusive growth. ONDC has brought the ease of doing business, which enables the small sellers to get connected with customers easily on the platform.

For example, small sellers can list and sell their products and services on e-commerce easily, and directly sell it to the people without any hindrance.

Easy to Find New Customers

As the ONDC will connect one seller with many customers, and one customer with many sellers, then it will become easy for the sellers to find the new customer base easily.

Direct Money

As a UPI system, ONDC will provide an option, which will enable the customers to directly pay to the account of the sellers.


Competitive Rates

The competitive rates placed by different E-Commerce platforms will bring a good choice for the customers. Like if Amazon is selling a product for Rs. 200, and the same product is sold at Rs. 150 at Flipkart, then the customers can find a good option for comparing the price and choosing the product.

Ease to Explore Local Products

Today, the customers go to the local shops to purchase local products, like grocery. But the ONDC platform has brought ease to explore the local products, which will connect them with the local shopkeepers, where they can place an order and get the products at home.

Fast Delivery

The platform will also serve the customers with fast delivery services, which will make them satisfied and build a true relationship.


ONDC marks its importance in giving priority to the buyers and sellers, by providing them with a standardized process, which will improve the efficiency in logistics with the supplier participation. It will bring all small and large businesses to the online digital platform, which will connect one seller with many buyers, and one buyer with many sellers, which will escalate the economy of India by a hundredfold. After the implementation of ONDC, all the e-commerce platforms will get connected with it. It will bring a destined opportunity for the small shopkeepers, and the people who want to sell their products and services but do not have a shop to run.

Delhi, Bhopal, Bengaluru, Shillong, and Coimbatore, are the cities where ONDC has been launched till now, which has helped the consumers to find any seller, product, or service at the platform.

[The images are being taken from the registered companies and belong to their respective owners only.]