Understanding the Economics of ONDC: How Players Can Profit
This video explores the economics of ONDC, an open network for digital commerce, and how players can make money. It highlights compatibility and the advantages of an open network.
00:00:05 This video discusses the economics of ONDC, the open network for digital commerce. Participants in the network make money through fees or commissions based on the services they provide. The transaction fees are determined by each party involved.
💼 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.
00:03:32 This video discusses the economics of ONDC and how players can make money. It explains the conditions and terms for buyers and sellers participating in the network, highlighting compatibility and matching between them. The video also emphasizes that the size of sellers does not determine decision-making power. Additionally, it draws parallels to the world of websites and banking to illustrate the importance of an open network.
💰 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.
00:07:00 The video discusses the economics of the ONDC and how players can make money. It highlights the advantage of an open interoperable network and the behavior of platforms in closed spaces.
⭐️ 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.
00:10:27 This video discusses the economics of ONDC and how players can make money. It explores the challenges faced by buyers in rural areas and the need for innovative solutions in e-commerce.
📊 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.
00:13:54 The video discusses how the ONDC network allows different entities to connect and create various models for e-commerce transactions. It also highlights the challenges and training needed for sellers to participate in the network.
🔍 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.
00:17:19 The video discusses the economics of ONDC and how players will make money. It mentions the gradual expansion of the network and the preparation required by different players, including logistics partners. The timeline for ONDC's implementation is uncertain.
📈 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.
00:20:47 The economics of ONDC and how players can make money are discussed. Predicting the growth and scale of the network is challenging, but confidence, word spread, and increased participation are key factors. The focus should be on understanding and encouraging more people to join.
📈 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.
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