š ONDC vs Flipkart & Amazon
In 2025, Indiaās e-commerce battlefield is witnessing a tectonic shift. While Amazon and Flipkart have dominated for a decade, a new challenger is rapidly rewriting the rules: ONDCāOpen Network for Digital Commerce. Backed by the Government of India and designed to democratize online retail, ONDC is enabling kirana stores, small sellers, delivery startups, and niche marketplaces to participate in e-commerce without being dependent on tech giants.
With over 45+ buyer apps, 70+ logistics providers, 3.2 million+ sellers, and support from state governments, cooperatives, and startup alliances, ONDC is being hailed as Indiaās UPI moment for retailāreshaping how consumers shop, how MSMEs sell, and how the digital economy distributes power.
š§ What Is ONDC and How Does It Work?
ONDC is an open-source, decentralized e-commerce protocol, similar to UPI in spirit but designed for product and service transactions. It connects buyers, sellers, logistics players, payment gateways, and service providers through a common protocol stack.
How it works:
- A buyer opens any ONDC-enabled buyer app (Paytm, Meesho, Magicpin, PhonePe)
- The app connects to a registry of sellers (from Craftsvilla, MyStore, StoreSe, etc.)
- Logistics are handled via partners (Shadowfax, Dunzo, Delhivery, etc.)
- Payment happens through UPI/Cards/Wallets with RBI-regulated settlement
Core Features:
- Decentralized and permissionless access
- Price transparency with capped commissions (3ā6%)
- Seller sovereignty with data access and multi-app listings
- Neutral discovery modelāsearch is not manipulated by paid rankings
- Government-backed grievance redressal and scorecard standards
š ONDC vs Amazon/Flipkart: The 2025 Numbers
| Metric | Amazon + Flipkart (Combined) | ONDC |
|---|---|---|
| Sellers onboard | ~1.3 million | 3.2 million+ |
| Daily transactions | ~2.2 million | ~1.5 million (growing 20% MoM) |
| Product categories | Retail, electronics, grocery, books | Retail + grocery + fashion + healthcare + agri + mobility + services |
| Avg. commission rate | 18ā35% | 3ā6% |
| Hyperlocal delivery | Centralized | Open to 70+ last-mile partners |
| Seller data control | Limited | Retained by seller |
| Languages supported | 11 | 22+ + regional dashboards |
| App access cost | ā¹0āā¹1,500/month avg. | ā¹0 onboarding + subsidized UPI & MSME kits |
šļø Why Sellers Are Shifting to ONDC
1. Transparent Pricing and Cost Savings
- Sellers can retain up to 80ā85% of their selling price vs ~60% on large marketplaces
- ONDC prohibits platform-exclusive bias or pricing manipulation
2. Data Ownership & Customer Interaction
- Sellers gain customer phone/email (with consent) to enable after-sales service
- Unlike Amazon where product reviews and CRM are controlled centrally
3. Multiple Discovery Channels
- Sellers can list simultaneously across:
- Buyer apps (PhonePe, Paytm, Meesho)
- Community commerce networks (Spice Money, GramSetu)
- Rural outlets (CSC, Sahakari Stores)
4. Low Barriers to Entry
- Zero coding skills required to go live
- ONDC Partner Portals (SellerApp, eSamudaay) assist with catalogs, GST, invoicing, fulfillment mapping
š Consumer Experience in 2025
Benefits:
- Compare prices across seller networks in real time
- Get hyperlocal delivery with vernacular support (voice + text)
- Use government e-commerce coupons (DPIIT voucher programs, Women SHG subsidies)
Challenges:
- Buyer app UX not yet standardized
- ONDC doesnāt yet guarantee uniform return/refund policiesāseller dependent
- Fewer big brands and private-label exclusives vs Amazonās Solimo or Flipkartās SmartBuy
To address this, ONDC is introducing:
- Open-Return APIs to standardize refund flows
- Seller Reliability Index (SRI) for buyer transparency
- Escrow-linked grievance redressal for secure buyer-seller trust
š Logistics in the ONDC Model
Unlike centralized supply chains of Amazon (ATS) and Flipkart (Ekart), ONDC logistics are āmatchmadeā per order:
- 70+ logistics firms compete in real time for lowest delivery cost, SLA adherence, and route optimization
- Small sellers can schedule pickups from Rapido/Dunzo or use India Post COD
- SmartRouting AI minimizes shipping time by auto-pairing buyer and seller proximity
- Fulfillment micro-hubs are emergingārun by FPOs, SHGs, and private last-mile aggregators
š® Whoās Leading Where in 2025?
| Segment | Leading Player(s) |
|---|---|
| Grocery (Tier-2/3 cities) | ONDC (StoreSe, Magicpin, MyStore) |
| Fashion, Handloom, Lifestyle | ONDC (Craftsvilla, Khadi India, Giva) |
| Electronics & Gadgets | Amazon, Flipkart (still dominant) |
| Food Delivery | ONDC (via Bitsila, Magicpin, small kitchen aggregators) |
| Agri & B2B | ONDC (Ninjacart, Dehaat, ONDC Agristack) |
| Health & Mobility | ONDC integrations with RedHealth, Portea, Rapido, MetroRide |
| Local Services | ONDC (home repair, salon, tuition apps in partnership with MyRojgar, FixServ) |
š Breakthrough Use Cases Across India
- Kolkataās Book Street vendors onboarded via Craftsvilla + ONDC + UPI QR for real-time orders
- Self-Help Groups (SHGs) in Kerala selling pickles, fabrics, and toiletries to 14 states
- North-East artisans (Nagaland, Assam) selling on PhonePeās ONDC portal with built-in language support
- UP Mandis now host virtual stores linked to FPO fulfillment + Dehaat-powered transport grids
- Meghalaya pine furniture sellers access buyer apps in Delhi via ONDC + Shiprocket collab
š§¾ Final Word
In 2025, ONDC is not merely competingāitās changing the structure of competition itself. Amazon and Flipkart operate as platforms; ONDC operates as a protocolāempowering thousands of micro-entrepreneurs to transact directly.
With regional commerce, small business innovation, and open tech APIs at its core, ONDC is ushering in a future where digital retail in India is open, diverse, inclusiveāand interoperable.
š¢ Visit GlobalInfoVeda.com for tutorials on ONDC registration, seller guides, and buyer tips across apps