ONDC explained: What is it, top buyer and seller apps, how to order food & groceries, and more

ONDC, or the Open Network for Digital Commerce, is a consortium of merchants and brands that have established an interconnected digital commerce platform. The Department for Promotion of Industry and Internal Trade of the Government of India has created the platform to develop open ecommerce.

By joining the network and agreeing to utilise a standardised payment processing service, members can connect their online stores seamlessly within the network.

How does the ONDC work?

The ONDC platform serves as the intermediary layer between the interfaces hosting the buyers and the sellers. If a buyer utilises ONDC to look for a grocery item, for example, they will be given a comprehensive list of sellers affiliated with ONDC that sell that particular item.

Further, ONDC ensures buyers can compare prices, quality, discounts, and other relevant factors.

Also Read: ONDC is India's next big bet after UPI

Major players backing ONDC

So far, ONDC has received investments from quite a few government and private organisations, including:

1. HDFC
2. Kotak Mahindra
3. Axis Bank
4. SBI
5. PNB

The network expands to 236 Indian cities with plans to expand nationwide.

Top 5 ONDC seller apps in 2023

Mystore

Mystore is a marketplace connected to ONDC that helps SMEs in India sell their products online. With the Mystore seller app, sellers can easily manage their business activities using integrated tools and a feature-rich admin dashboard.

eSamudaay

eSamudaay is an ONDC seller registration platform in India; it simplifies order processing and product management for grocery, food, and beverage merchants. The app is onboarding businesses from various cities in India.

GOFRUGAL Technologies

GOFRUGAL Technologies provides advanced solutions for ONDC network selling to retail businesses. Its seller app enables omnichannel selling, allowing customers to shop through various channels.

Growth Falcons

The Growth Falcons seller app specifically collaborates with sellers from the food and beverage industries. Growth Falcons is an AI-based growth marketing agency that has developed its own ONDC seller app to assist sellers in registering on the open network.

SellerApp

The SellerApp, in collaboration with YES Bank, provides YES Bank's corporate customers with an ONDC seller app for selling on the open network. It specialises in the grocery, home, and decor categories for its sellers.

Also Read: ONDC will truly reflect physical market in a couple of years: CEO T Koshy

List of top 5 buyer apps in 2023

Paytm

Paytm was the first app to go live on ONDC in Bangalore in September 2022. It has quickly established itself as one of the top five buyer apps in 2023, receiving the highest number of ONDC orders on the platform.

Pincode

Pincode, launched by PhonePe, is a hyperlocal ecommerce app connecting users with neighbourhood sellers. It is India's first infinity store based on the ONDC Network, generating public demand for digitally-enabled sellers across various seller platforms in an inclusive approach.

Mystore

Mystore stands out for its curated selection of niche products. It has caught the attention of high-end customers who seek unique and one-of-a-kind products by prioritising quality over quantity.

Magicpin

Magicpin is a local discovery platform that has gained significant traction. It allows users to explore top food brands, curated collections, big offers, cuisine sections, must-try categories, and more.

Meesho

Meesho, one of India's new-age ecommerce platforms, has integrated with the Open Network for Digital Commerce (ONDC) with two key objectives: to enable buyers to connect with hyperlocal sellers and to support India's vision of establishing a diverse ecommerce ecosystem.

How to order food and grocery on ONDC

The ONDC does not yet provide its own application to order food and groceries. However, customers can order food and groceries through partner applications such as Paytm and Magicpin.

The following is a detailed guide outlining the step-by-step process of ordering food and groceries through ONDC by utilising the Paytm application:

Ordering food and grocery on ONDC through Paytm

1. Open the Paytm app on your device. If you do not have the app installed, you can download it from either the Apple Store or the Google Play Store.
2. Click on the search icon at the app interface's top, and look for "ONDC".
3. You will be presented with several options to choose from. These options encompass food, groceries, and home decor.
4. After selecting the appropriate category, a list of available products for ordering will be displayed. Select the desired product by clicking on it.
5. Once you have chosen the product you wish to order, you must enter your delivery address.
6. Now, all that is left is to make the payment to confirm your order.

For those who want another option, here is a comprehensive guide on how to order food and groceries on ONDC using the Magicpin app:

Ordering food on ONDC through Magicpin

1. Download the Magicpin app and install it on your device.
2. Within the Magicpin app, locate and select the food/grocery option from the available choices.
3. Select the ones you wish to order.
4. Now you will be prompted to put in your delivery address.
5. Choose your preferred payment method and complete the payment process.
6. You will receive a confirmation message after successfully placing your order and completing the payment.

ONDC vs Zomato and Swiggy

ONDC is positioned as a significant disruptor in the food delivery sector, as it allows restaurants to sell their food to consumers through buyer apps directly. Notably, ONDC imposes a commission rate that is less than half of what major food delivery platforms like Swiggy and Zomato charge, which typically ranges between 18 percent and 25 percent. This enables restaurants and food chains to price their offerings more competitively.

While ONDC does not present an immediate threat to the dominant position of Zomato and Swiggy in the food delivery segment, as restaurants gradually transition to ONDC, it may become challenging for these major enterprises to retain consumers.

Frequently asked questions

1. How can buyers and sellers become part of ONDC?

Buyers can join ONDC by downloading a compatible buyer app such as Paytm or Magicpin. Sellers can join ONDC by registering with a compatible seller app such as Bizom or Digiit.

2. What are the objectives of ONDC?

ONDC aims to achieve the following objectives:

1. Democratise the ecommerce landscape in India.
2. Reduce the dominance of US-based major players like Amazon.
3. Establish an open platform for the buying and selling of goods and services.
4. Enable local retailers to participate in the ecommerce market.