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Is the End of Amazon and Flipkart on the Cards?
The emergence of Open Network for Digital Commerce (ONDC) is an alarming bell for the duopoly in the Indian e-commerce industry
Is the end of the duopoly of Amazon and Flipkart in the e-commerce industry on the horizon?
Amazon and Flipkart have captured 80% of the Indian market through aggressive discounts and promotion of preferred sellers on their platforms.
This development is for obvious reasons making local and small businesses uncomfortable, alleging that they will soon run out of business.
To combat this worrying trend, the government of India is enthusiastically pushing the idea of an Open Network For Digital Commerce ( ONDC ) to strengthen the local and Kirana shops through technological inclusion and greater visibility.
What is Open Network for Digital Commerce?
ONDC is for e-commerce what UPI is for the payment industry, at least for how it has been visualized.
It’s an open-source network where buyers and sellers meet and can negotiate the best deal. Here you’re not confined to a particular platform and can seamlessly browse your favorite products across apps like Amazon, Flipkart, Myntra, first cry, etc.
Greater visibility and inclusivity for the sellers and more choices and negotiating power for the buyers.
ONDC will democratize the digital commerce space.
However, you may ask, why ONDC is the need of the hour? Everything is going seamlessly, isn’t it?
Well, no!
To put things into perspective, the Indian e-commerce industry is expected to skyrocket and touch a mammoth $350 billion by 2030.
And as we have discussed, it’s comfortably going into the hands of Amazon and Flipkart. Therefore, the government of India has to intervene and formulate a mechanism that will help small and medium businesses attract more visibility and earn a greater share of business in this expanding digital commerce market.
Also, there are reports that Amazon is involved in several malpractices in India.
