ONDC (Open Network for Digital Commerce) is an initiative backed by India's Department for Promotion of Industry and Internal Trade that defines open protocols so that any compliant buyer app can search and order from any compliant seller app, instead of each marketplace being a closed platform.
Why it matters
Traditional marketplaces bundle discovery, payments, logistics and customer data in one platform. ONDC unbundles them: a shopper can use one app, find items from sellers registered through other apps, and have delivery handled by a third-party logistics provider. This aims to lower entry barriers for small merchants and reduce dependence on a few platforms. The idea resembles how email works across different providers. Adoption and categories supported continue to evolve.
Example
A buyer opens a food-ordering app that supports ONDC and searches for "pizza". The request goes to the network, which broadcasts it to seller apps. Restaurants registered through different seller apps respond with catalogues and prices. The buyer picks one, pays, and a logistics partner on the network delivers the order.
Common misconceptions
- ONDC is not an app or a store. It is a set of network rules and APIs.
- It does not process payments by itself; participants use payment methods such as UPI.
- Every app on it does not show the same catalogue; results depend on who has joined.
Rules vary by country; this entry is a definition only.
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