Scaling New Heights: ONDC Witnesses 150,000 Orders Daily

ONDC has achieved an important milestone: an average of 150,000 retail orders daily. This success shows the growing influence and popularity of the ONDC Network, which continues to change digital commerce in India by creating a more inclusive and competitive marketplace by providing the equal opportunities to everyone.

ONDC is the first of its kind as a network to democratize digital commerce in India. Different from the conventional e-commerce platforms that handle inventory and logistics, the ONDC network allows buyers and sellers to communicate with each other. By connecting different network participants like buyer apps and seller apps, ONDC creates an open and inclusive digital marketplace where buyers and sellers can interact with each other smoothly. Hence, ONDC serves as a link between the buyers and the sellers who offer a variety of products and services. 

The milestone of 150,000 daily orders has reached the midst of the big changes to ONDC's incentive scheme. The new incentive program, now called the "market intervention program," is a sign of a strategic change to sustainability. The network has cut the number of payouts per order across all categories by 30 percent. Besides, only the top 20 cities will be given the incentives for food and beverage orders, and only a particular percentage of orders from the buyer-side apps will be eligible for these benefits.

This restructuring sends a clear message: The network participants, like the buyer apps and seller apps, must slowly take the bigger part of the cost of the discounts and promotions. As reported by Moneycontrol, The network got an average of 150,000 retail orders per day last month. The demand dropped a bit in the first week of April, but it went back up over the past couple of weeks. The numbers for this month are expected to be slightly higher than those of the previous month.

The fast expansion of ONDC is proven by its monthly retail purchase volumes, which have increased six times in six months, reaching 3.6 million in March 2024. This rapid growth of ONDC is a clear indication of its increasing adoption by both consumers and retailers.

Another significant characteristic of the new incentive structure is the extra help for seller apps on the network that have not received any orders in the last three months. This targeted support from the government is designed to increase the participation of underperforming sellers, thus creating a more lively, inclusive, and competitive market.

Apart from retail transactions, ONDC is also making great progress in the financial services sector. The network enables combining different financial products, such as mutual funds, loans, and insurance. This project is part of ONDC's bigger plan to build a complete digital ecosystem that will meet consumers' different needs.

In January, ONDC successfully tested for personal loan transactions with partners like Easypay and DMI Finance. The continuous improvements will lead to more financial service providers being part of the network. The major players, such as Aditya Birla Capital, Tata Capital, Canara Bank, Kotak Mahindra Bank, Bajaj Finserv, and Bajaj Allianz, are in different stages of integration with the ONDC Network. This growth in financial services is meant to improve the network's value proposition by providing consumers and businesses with a single platform for their digital requirements.

The Indian government's backing of ONDC is very important in its mission to increase e-commerce penetration to 25 percent and attain a gross merchandise value (GMV) of $48 billion in the coming years. This help is similar to the incentives given to UPI (Unified Payments Interface) applications, where the government provides subsidies to encourage the use of the system without any losses. Also, ONDC's restructuring of incentives is aimed at long-term sustainability while at the same time promoting adoption among the network participants.

ONDC's vision extends beyond just facilitating transactions. Creating an open network aims to break the monopoly of established e-commerce giants, enabling a more inclusive and competitive digital marketplace. This democratization of digital commerce is expected to empower millions of MSMEs, providing them with the tools and opportunities to compete on a level playing field.

The achievement of 150,000 daily orders marks a significant milestone in ONDC's journey toward revolutionizing digital commerce in India. By facilitating interactions between buyers and sellers, restructuring incentives, and expanding into financial services, ONDC is paving the way for a more inclusive and competitive digital economy. As the network evolves, its impact on the Indian e-commerce landscape will likely grow, offering new opportunities for businesses and consumers.