New Delhi: Snapdeal, India’s leading value e-commerce platform, has announced that it is now receiving orders through Open Network for Digital Commerce (ONDC). The company has launched three key categories on ONDC – Home, Fashion, and Beauty & Personal Care, and is expanding its access to these categories. The move is expected to offer seamless access to Snapdeal’s vast selection of value merchandise to all buyers using ONDC.
The initial orders via ONDC have been received from cities such as Ajmer, Gurdaspur, Aligarh, Indore, Kakinada, and Amravati, among others. These orders are primarily focused on home and kitchen products, including bedsheets, towels, utensils, storage & serving sets, and kitchen tools. Most of the products listed on Snapdeal are in the sub-Rs 1000 price range and are designed to serve the user’s functional needs with good-quality, value-priced products.
As part of its collaboration with ONDC, Snapdeal is also expanding its access to Fashion and Beauty & Personal Care categories. The fashion category will include apparel, footwear, and accessories for kids, women, and men, while the beauty category will include a range of make-up products, including lipsticks, nail polish, and eye make-up. The personal care category will include skin care, hair care, oral care products, and deodorants.
Snapdeal draws more than 86% of its orders from outside the metro cities, with more than 72% of the orders flowing from buyers living in smaller cities and towns. With an exclusive focus on the value segment, more than 95% of the products sold on Snapdeal are priced below Rs. 1000. The launch on ONDC ties up cohesively with Snapdeal’s existing focus on connecting small & medium sellers with a large and growing online market, especially amongst buyers living outside India’s metro cities.
According to the e-commerce enablement platform, Unicommerce, e-commerce growth in India has well and truly moved beyond the large cities to hundreds of Tier 2, 3, and smaller cities across the length and breadth of the country. The market share of tier 2 and Tier 3 cities in 2022 was 41.5% and 21.4%, respectively. The Red Seer Report also predicts that mid-income buyers from India’s Tier 2+ cities covering more than 80% of India’s population will triple in size in five years, from approx 78 Mn in 2021 to nearly 256 Mn by 2026.
“With over a decade of experience serving Bharat through lakhs of small and medium enterprises, Snapdeal has a unique and deep understanding of what it takes to serve India’s mass market. As we go live on ONDC, we would like to reiterate our belief that enabling India’s existing retail players, especially MSMEs, to embrace the online opportunity is the best way for India to reap the digital dividend for the largest section of society. We would also like to acknowledge the prompt and extensive support from the ONDC team and look forward to deepening this partnership to serve India’s mega cohort of value-savvy buyers,” said Himanshu Chakrawarti, CEO – Snapdeal Market Place.
“We’re excited to have Snapdeal join the ONDC network with its repertoire of merchants from across the country with a special focus to MSME among others. This is in line with that inclusive agenda of ONDC providing equal opportunities for big and small enterprises,” said T. Koshy, CEO, ONDC.
In conclusion, the collaboration between Snapdeal and ONDC is a step towards expanding the online opportunity in India and creating a more inclusive e-commerce ecosystem. With the growing demand for e-commerce in smaller cities and towns
Incorporated on 31st December 2021, Open Network for Digital Commerce (ONDC), a Section 8 company, is an initiative of the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India build envisioned to create a facilitative model to revolutionize digital commerce, giving greater thrust to penetration of retail e-commerce in India. ONDC is not an application, platform, intermediary, or software but a set of specifications designed to foster open, unbundled, and interoperable open networks, thereby eliminating the dependency on a single platform.
Major ONDC objectives are as follows:
- Democratisation and decentralization of eCommerce
- Inclusivity and access for sellers, especially small and medium enterprises as well as local businesses
- Increased choices and independency for consumers
Snapdeal is one of India’s leading e-commerce companies and is focused on India’s large and growing value segment and hosts high-quality, value-priced merchandise in key categories like home, fashion and beauty & personal care. In line with its exclusive focus on the value segment, more than 90% of the products on the platform are priced under Rs. 1,000 and more than 86% of the orders are from outside metro cities. Over the last several years, the company has enhanced its expertise in catering to mid-income users who have a budget-led approach to spending and access the Internet primarily through their mobile phones.