Understanding the Economics of ONDC: How Players Can Profit

💼 The ONDC network allows participants to make money by charging fees for the services they provide, either as a percentage or a fixed fee.

💰 Participants may also have different models for generating income, such as deriving revenue from something other than the transaction itself.

🔄 Buyer, seller, and logistics companies share the money paid by the buyer for the product and delivery, with each party determining their charges and commissions.

💰 Players in the ONDC can make money through commissions based on buyer preferences and terms.

🔎 The network in the ONDC matches buyer requirements with seller catalogs and terms for efficient trade.

🏦 The size of sellers does not necessarily determine their influence in the ONDC ecosystem.

⭐️ In an open interoperable network, the size of a bank is no longer a factor in making transactions.

💰 Initial discounting may be necessary for smaller sellers to attract buyers on e-commerce platforms.

🔒 Closed platforms incentivize pricing discounting to lock in buyers and sellers, while open networks do not require such efforts.

📊 Discounting behavior is not beneficial in an open network as it provides no business benefit.

🛒 The majority of commerce in the country is still physical, indicating a lack of belief in online solutions.

🚚 Creating alternative delivery solutions can tap into existing idle capacity and improve the discovery process for buyers.

🔍 The decentralized network allows for various models to be possible and for more participants to join easily.

📈 The expansion of the network depends on the robustness and vibrancy of the seller market.

👥 Onboarding sellers onto the platform involves digitizing their inventory, training them on receiving and packing orders, and managing their payment expectations.

📈 As the ONDC network expands, more parties will join and tools will be created, making it easier for people to participate without much assistance.

🔧 In the initial stages, handholding will be required, but over time, people will learn how to build tools themselves, making the process easier.

🌐 Existing e-commerce players can easily make their catalogs ONDC-compatible or transfer them to another platform with a few software steps.

🚚 Logistics partners like Dunzo and Loadshare have integrated with ONDC, allowing them to respond to orders and provide necessary information for delivery.

🗓️ While ONDC is inevitable and will happen at scale, it's hard to predict an exact timeline due to various factors that can dramatically impact its progress.

📈 The number of domains, seller options, and locations for ordering will increase as confidence and word spread.

🌍 The focus should be on achieving population scale and encouraging more people to participate in order to rapidly scale up.

⏰ The timeline for transformation and the specific number of e-commerce solutions cannot be predicted, but acceptance of shopping on ODC will increase in a year, and new solutions will emerge in two years.