Amazon to join India’s ONDC network

E-commerce giant Amazon announced on Friday that it will join the Indian government’s ONDC (Open Network for Digital Commerce) platform and as part of its initial collaboration will integrate its Smart Commerce and logistics services with the ONDC network. 

Amazon logistics services include pickup and delivery, while Smart Commerce is a suite of SaaS products hosted on AWS that can assist MSMEs build and scale their business and integrate it with the ONDC network.

Amazon said that it will continue to explore potential opportunities for a stronger integration with the ONDC network.

ONDC is a non-profit organisation set up by the Commerce Ministry’s Department for Promotion of Industry and Internal Trade (DPIIT) to democratise e-commerce services and provide small e-commerce stores and online sellers with a level playing field.

“Amazon’s vision and commitment for India are closely aligned with ONDC’s objectives of digitally enabling small businesses and providing convenience and choice to customers across the country,” said Manish Tiwary, Country Manager, India Consumer Business at Amazon India.

Tiwary added that Amazon is excited to provide its infrastructure and technology to help ONDC achieve its goals faster. 

ONDC network is currently in the beta phase and has conducted pilots in select cities.

“We are happy that Amazon has a definite roadmap to being a part of the ONDC network and is taking its first step in coming in as the logistics partner in the ONDC network,” said T Koshy, MD & CEO of ONDC.

The ONDC network protocol allows anyone to create an e-commerce marketplace and tap into the ONDC network to get products displayed and delivered without having to worry about logistics. It has also been equated with a unified payment interface (UPI), which has made online payments faster and easier for millions of Indians.

In August 2022, ONDC signed a memorandum of understanding (MoU) with the Small Industries and Development Bank of India (SIDBI) to onboard its huge ecosystem of MSMEs on the network. Several companies including Microsoft, Meesho, Paytm, and Dunzo have already joined the platform. Flipkart, PhonePe, and JioMart are also reportedly planning to join the ONDC network.

Last December, at the inauguration of ONDC’s first office in New Delhi, Koshy said that the network has 26 partners, which is expected to grow by another 125 by February. He added that 200 more platforms are working on technical integration with ONDC, while more than 400 buyers, sellers, and logistics partners are at the paperwork stage. ONDC will charge small fees from platforms for the maintenance and development of the network, Koshy told Mint.