This blog breaks down what ONDC is, how it works, and why it’s transforming digital commerce in India. Explore its 2025 roadmap, key features, and how it empowers retailers, small businesses, and consumers alike. Understand how this government-backed initiative promotes digital inclusion, reduces platform dependency, and creates equal opportunities for sellers across the country.

Over the past few years, Indian firms have quickly sensed the increased scope of e-commerce expansion. Since the start of the COVID-19 epidemic, people have become overly dependent on online purchasing, and as a result, e-commerce companies now have the power to determine the future of the majority of online companies.

The Indian government suggested the ONDC whose full form is: Open Network for Digital Commerce, as a way to break up the monopoly. By consolidating nearly all suppliers from the consumer products, groceries, transportation, and service sectors under one roof, it will standardize the supply value chain throughout India.

This open-source network has been giving all of its members equal opportunity since its founding in 2022. The main goal of ONDC is to bring 80% of India’s physical kirana shops online. If you are an Indian retailer wondering how it will impact your company then this blog will be your one-stop guide to get details into ONDC platform?, its advantages, working model, and strategic relevance in 2025.

What is ONDC?

ONDC stands for Open Network for Digital Commerce which is an initiative by the Indian government to make eCommerce networks accessible to everyone. This simply means that anyone can sell the products online and anyone can buy the products online from each other. ONDC is intended to ease the communication and relationship between customers, retailers, merchants, and IT companies. It guarantees that vendors and customers can exchange goods and services without relying on the platform or application. Learn more on the official ONDC website.

Year	Development
2020	A committee was established by DPIIT that came up with the concept of ONDC to democratize e-commerce in India
April, 2022	ONDC began a test program in 5 major cities including Bangalore, Delhi and Bhopal.
January 2023	More buyer/seller applications joined ONDC once the government formally opened it to broader public involvement
2024	ONDC quickly grew to over 300 cities and industries, including financial services, food delivery, and mobility.
2025	ONDC will expand its customer base and become fully operational throughout India, onboarding thousands of retailers.

How Does ONDC Work?

By comparing ONDC to the Unified Payment Interface (UPI), we can have a better understanding of how it operates. Regardless of whether they utilize a specific ONDC app or not, UPI enables mobile payments for everyone with a bank account. In a similar vein, the ONDC platform acts as a bridge between the customer and seller interfaces.

Let’s say the customer opens any of the current eCommerce apps, such as Amazon, using ONDC. The buyer will then be presented with a list of sellers within the Amazon app, Flipkart, retailers, and any other app that has registered with ONDC. As a result, ONDC app guarantees consumers the chance to evaluate costs, quality, discounts, and other factors. In the event that the delivery agent from the chosen app is unable to perform delivery services, it also enables the buyer or seller to select delivery agents from other applications.

The ONDC consist of three major components:

• Seller: Become discoverable online and have an equal chance to compete with major market players.
• Customers: Experience a smooth shopping experience with a large selection of items from several categories at a single checkout.
• Tech Companies: Tech companies are known for their quick product and service acceptance and successful go-to-market campaigns.
• FinTech: Offer finance and credit options to all e-commerce-related organizations.

With ONDC’s microservices architecture, every network component functions as a separate service with the ability to interact with other services via APIs, particularly AsyncAPIs. This modular design facilitates the integration of ONDC with many systems. But because ONDC is open and accessible, it needs specific IT parts and procedures to work well, which is why the ONDC system depends on the Beckn protocol.

What is Beckn Protocol?

The Beckn protocol is an open digital system that facilitates the seamless integration of various internet services and applications. Order booking, payments, delivery, and more are supported on multiple platforms. Under the direction of the Open Shared Mobility Foundation and with assistance from the Beckn Foundation, it drives ONDC’s backend. Beckn promotes digital identification, decentralization, common APIs, and simple scaling to ensure an effortless online experience.

Which are the Important Components of an ONDC Platform?

An ONDC application includes enough facilities for online markets that help vendors and buyers to interact and make transactions. Main components of ONDC platform include:

1. E-Commerce Registration Section

This specialized page of ONDC application enables easy registration of several e-commerce platforms. It helps companies to quickly on-board their operations, therefore guaranteeing more involvement in online trade and improving user access to a range of online goods and services all throughout India.

2. Centralized Customer Database

The “Central Customer Database” functions as a consolidated consumer information source. While guaranteeing data privacy and security, it safely saves and manages user data including preferences, purchase history, and personal details, enabling seamless and tailored digital commerce experiences across many platforms.

3. Products and Services Catalogues

Complete digital inventory of their goods and services helps sellers. This improves the whole purchasing experience by giving consumers a user-friendly interface for browsing, searching, and product choosing. This element simplifies product research and choice, therefore encouraging efficiency and convenience in online buying.

4. Secured Payment System

Easy payments guarantee private and safe financial transactions. Using cutting-edge encryption and authentication techniques, the ONDC platform protects customer payment data and thereby stops unwanted access. In handling payments within the ONDC ecosystem, this element ensures dependability and confidence.

3. Order Fulfilment Section

An ONDC app’s order tracking area helps to simplify order processing. It guarantees correct and quick delivery to consumers by managing order information, inventory, packaging, and shipping. By automating order logistics and preserving open communication all through the fulfilment process, this element also improves customer experience.

4. Feedbacks and Ratings

User comments and ratings concerning the performance, features, and experience of the ONDC app belong in this part. By showing user comments, therefore improving general quality and customer satisfaction and helping developers to get insights, improve the software, and establish trust.

What are the Main Goals of ONDC?

• Enhanced Competition: By removing the monopoly of large digital platforms, ONDC gives consumers more options, better pricing, and equitable service by allowing competition with smaller firms. 
• Empowering Democracy and Decentralization: It encourages fair power distribution among all the participants, including consumers, service providers, and small businesses, resulting in equal participation in the digital economy. 
• Embracing Digital Transformation: By adapting digital transformation, companies can easily implement digital tools and technologies, enhancing customer satisfaction and productivity, allowing small businesses to comfortably open online stores. 
• Aligning Fairness and Access: Ensures equal access to online platforms for regional brands, small sellers, and local shops, promoting an equitable and welcoming online economy.
• Enhanced Delivery: Enhances delivery and logistics systems to give consumers faster, more reliable, and better tracking for their products.
• Empowering Users: Provides consumers with more control over their purchasing process by allowing them to select platforms, services, and sellers according to their requirements.
• Preserving Your Privacy: Allows users to purchase and communicate online with confidence and trust by protecting your personal information through privacy, security and transparency, 
• Reduced Costs : Businesses can cut costs by cutting out intermediaries and tech fees, which results in better deals, more affordable products, and more accessibility for consumers.

Benefits of ONDC for Customer, Seller and the Market

By utilizing Open Network for Digital Commerce, every participant in the e-commerce industry, as well as the industry itself, can gain several benefits:

1. For Customers

• More Choice: Customers have access to a wider range of goods from various platforms and suppliers
• Competitive Pricing: Better pricing alternatives and discounts can result from healthy competition among sellers.
• Simplified Process: ONDC makes shopping easier by combining products from several platforms into a single one.

2. For Sellers

• Lower Costs: Sellers pay less in commission when they are less reliant on a single, large platform.
• More Autonomy: Sellers are in charge of their listings, prices, and dealings with clients.

3. For E-Commerce Industry

• Promotion Competition: To understand the power of big platforms and decentralize the e-commerce business, ONDC is essential. This contributes to gaining a competitive advantage in the marketplace..
• Encourage Innovation: Its open structure fosters new ideas and welcomes new companies and services.
• Supports Digital Inclusion: To establish a more inclusive digital economy, ONDC introduces local shops and small enterprises to the online marketplace.

What are the Unique Features of ONDC in 2025?

1.Enhanced Choice and Competition

ONDC unites several online retailers, giving customers access to a wider range of goods and services. More options are available to users at reasonable costs as a result of the increased competition among sellers.

2. Reduced costs

One of ONDC’s platform main advantages is that, in general, its prices are less expensive than those of other meal delivery applications. This pricing is a significant benefit since it can save customers money on their orders, particularly those who are frugal. For individuals and families seeking to save money on their meals, it’s a fantastic option.

3. Discounts and Promotions

You will frequently find exclusive discounts and promotions while using ONDC, particularly when using Paytm and similar services. These incentives may include taking advantage of seasonal discounts, receiving free delivery, or receiving price reductions on particular restaurants or menu items. This means that when you shop, you can take advantage of additional discounts and benefits.

4. Assistance for Small Enterprises

ONDC is essential in helping local vendors and small businesses. It gives them a way to connect with more people, which enables them to grow their clientele outside of their own neighborhood. Users can also find distinctive goods and services that might not be offered on conventional e-commerce platforms thanks to this inclusion.

5. Government-Backed Initiative

ONDC has the backing of the Indian government through the Department for Promotion of Industry and Internal Trade (DPIIT). This formal endorsement lends government eCommerce network more legitimacy. It indicates that users can have faith that the platform is authentic and complies with all legal requirements.

6. Customer Service

Within the app, ONDC provides specialized customer assistance. For help with a variety of problems, such as order tracking, payment concerns, or general questions, users can contact the support staff. This ensures customers a hassle-free and smooth purchasing experience.

Significant Modifications to Open Network for Digital Commerce in 2025

There have been significant modifications to ONDC in 2025 which is as follows:

• Adoption & Scale: With more than 3 lakh sellers onboarded and more than 100 buyer applications involved, ONDC is currently operational in more than 400 cities and towns. 
• Sectoral Expansion: Retail is no longer the exclusive market for ONDC. It has spread to industries including as: Food & Beverages, Mobility, Financial Services, FMCG and Agriculture
• AI-powered Discovery: Buyer apps now incorporate intelligent suggestions based on vendor preferences and buyer behavior.
• Multiple-Language Interfaces: Because ONDC supports more than ten Indian languages, it is accessible to buyers and sellers who do not speak English.
• Enhanced Catalogues: Listings are more accurate and appealing because of automatic picture recognition algorithms, digital product passports, and improved product tagging.
• Security & Compliance: To maintain a secure ecosystem, ONDC enforces data protection regulations, KYC standards, GST compliance, and ethical AI rules.

Who Can Join ONDC ?

• Local Retailers: Small shop owners can join ONDC and sell their products online and expand their reach to more customers.
• D2C (Direct-to-Consumer) Brands: Brands can directly connect with buyers without the need of any third-party or middlemen through ONDC.
• Distributors & Wholesalers: Bulk sellers can effortlessly list their products and search new business buyers.
• Service Providers: Delivery or logistic business providers can provide their solutions and reach the clients by registering on ONDC.
• Technology Providers: Companies delivering tech tools or several platforms can support sellers and buyers on ONDC.
• Buyers/Consumers: Anyone can utilize ONDC to shop from multiple sellers on a single platform.

How to get started with ONDC ?

Check out the steps to join ONDC:

Step 1: Select a seller app: Sign-up for a seller-side platforms 

Step 2: Complete the KYC Process: Provide your bank account details, GST, business PAN, and other supporting documentation for validation.

Step 3: List Your Products: Using the POS integration or seller dashboard, add product details, prices, stock levels, and photos.

Step 4: Logistic Integration : Access to logistics partners is embedded into the majority of seller apps. Select one depending on location coverage and cost.

Step 5: Launch : After approval, your products appear in a variety of ONDC network buyer apps.

Step 6: Promote Your Store : Local marketing and advertising assist increase traffic to your listings, even though ONDC offers reach.

Final Thoughts

India’s digital commerce will undergo a transformation with the support of the Open Network for Digital Commerce (ONDC). The open, approachable structure of ONDC will promote healthy competition in the e-commerce industry, assist smaller enterprises, and increase consumer choice.
ONDC provides a scalable, reasonably priced, inclusive solution for Indian stores—especially those that have battled to go digital.

By 2025, ONDC will be a need rather than a luxury. Whether your company is a multi-location shop, D2C brand, kirana owner, or otherwise, embracing ONDC can future-proof your company against platform reliance and open access to a rising pool of digital consumers.

Frequently Asked Questions

1. What is ONDC?

The Open Network for Digital Commerce, is a technology-driven project that aims to revolutionize India’s digital commerce landscape. It encourages innovation, user convenience, and fair competition.

2. Is ONDC a government-backed platform?

Yes, Open Network for Digital Commerce or ONDC is a platform supported by the government. It was first introduced by the Department for Promotion of Industry and Internal Trade (DPIIT), a branch of the Ministry of Commerce and Industry of the Indian government.

3. How does ONDC work?

In the e-commerce industry, ONDC serves as an intermediary between different apps, connecting buyers and vendors. It offers a centralized platform where customers may order from many small and large-scale merchants, compare costs, and explore choices.

4. What are the benefits of ONDC?

Increased competition and choice, enhanced efficiency, assistance for small businesses, reduced costs, sales, and promotions, access to regional goods, and a host of other benefits like government support, customer service, and a broad network of partners are all provided by ONDC.

5. Where is ONDC available?

ONDC is currently available in several locations across India, including Bangalore Delhi NCR, Kolkata, Hyderabad, Chennai, Maharashtra and others.