India is a big country, with a population of nearly 1.34 billion people. This means that there are a lot of people who are yet to be tapped into or served by the internet. With ONDC, local commerce and businesses can now enjoy the benefits that the internet can provide.
With the approach of e-commerce on the high and the e-commerce marketplaces dominating the sales and revenue in the current scenario, local marketplaces are desperately needed to be introduced. Local stores and sellers are going to be the major beneficiaries of such marketplaces and Hyper-Local Marketplaces are going to be the game changers. The blog addresses such marketplaces and their different aspects of it.
Why the Indian E-commerce market is so tough?
India is considered to be the second largest and one of the fastest growing e-commerce markets with a penetration rate of just 6%. The e-commerce market in India has been continuously growing year after year. The growth rate of e-commerce in India is expected to reach $6.5 billion by 2020. The main reason behind the boom of e-commerce is the rise in the number of online shoppers. As per a report by Morgan Stanley, the number of online shoppers in India is expected to reach 80 million by 2019, and it is expected to grow to 120 million by 2021. This is a 41% growth in just four years. But the main question is: why is the e-commerce market in India growing so rapidly when the majority of the country’s population doesn’t have access to the internet? The reason behind India’s e-commerce boom is the rise of the mobile internet. Mobile internet is the most widely used platform to access the internet in India. An average Indian uses the internet on a smartphone at least 4 times a day, compared to 2.5 times a day on a desktop or laptop. This makes the growth of the e-commerce market in India even more compelling.
What is ONDC?
ONDC is an OPEN NETWORK FOR DIGITAL COMMERCE that enables customers to buy products online from local stores and sellers. ONDC is a network, where every store and seller is matched with buyers and orders together, eliminating the need for a middleman or third party. ONDC is a quick commerce network, enabling 10-minute delivery in all nearby areas where the product is available. The community will help match sellers with buyers, provide a local directory, and help each other with recommendations, reviews, and more. ON the network many players can participate as Logistics service providers, seller platforms, buyer platforms and payment as a service. All network participants can conjoint work together to execute an order from search to delivering an order.
How ONDC is planning to revolutionize commerce through its unique network?
The Indian e-commerce market is growing at a very fast pace, but still has a long way to go before it reaches a saturation level. There are a few reasons for this. First, India is a very complicated market for e-commerce. Second, the Indian consumer is very price sensitive. Third, the Indian consumer does not trust foreign e-commerce companies. The only way to deal with these issues is to be local and cater to local needs. ONDC is India-centric and is already on its way to becoming the largest hyperlocal marketplace network in India. With the help of their network participants, ONDC will enable local stores and sellers to quickly build a community. Any store or seller can be found on the marketplace platform via the network, and can quickly build a relationship with their customers.
For More details visit: https://www.ondc.org/, Click here to Read Strategy Paper.
Conclusion: ONDC is aiming to help the millions of small businesses all across India, that cannot compete with the big players.
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