New Delhi: Amazon has announced that it will join the Indian government’s ONDC (Open Network for Digital Commerce) platform, which aims to provide small merchants and kirana stores in certain parts of the country with access to technologies and processes that are typically used by large e-commerce platforms. This move is particularly significant since ONDC seeks to democratize e-commerce in India, which is currently dominated by companies such as Amazon and Flipkart. ONDC aims to level the playing field by making it easier for small businesses to compete with these larger players.
Amazon plans to integrate its logistics network and software suite, called SmartCommerce, with ONDC. SmartCommerce is a suite of SaaS products powered by Amazon Web Services that enables MSMEs in India to build and scale their business across digital platforms. Amazon hopes that this collaboration with ONDC will be the first of many as it explores other opportunities for future integration.
“The ONDC network is a globally innovative idea established to democratize digital commerce in India. We are happy that Amazon has a clear roadmap to being a part of the ONDC network and is taking its first step in coming in as the logistics partner in the ONDC network. We also hope that the buyer and seller platforms are on-boarded as early as possible,” said T Koshy, MD and CEO of ONDC.
The ONDC platform is being developed using an open-sourced methodology, independent of any specific platform, and using open specifications and open network protocols. The goal is to counter the current duopoly in the Indian e-commerce market, which Amazon and Walmart-owned Flipkart currently dominate.
Microsoft was the first major technology company to join the ONDC network in August, with the intention of introducing social e-commerce – a group buying experience – in the Indian market. Other participants in the ONDC network include Paytm, which has joined as a buyer, and Reliance-backed Dunzo, which offers logistics services for hyperlocal deliveries.
