ONDC (for MSMEs & Small Traders)

ONDC is an initiative of the Government of India to allow any network- enabled application to discover and engage in local commerce across segments. The platform aims to create new opportunities, reduce digital monopolies, and assist micro, small, and medium enterprises, as well as small traders, in gaining access to online platforms. A Memorandum of Understanding (MoU) between the Government of West Bengal and ONDC has been signed on November 22, 2023 to extend business opportunities to MSMEs and small Traders through ONDC Programme.

Onboarding Procedures

Registration in ONDC network

To register with ONDC, you can provide the following details on the website of an ONDC seller app

• Business details: Business name, address, contact details, GSTIN, and bank account details
• Product details: Product details, category of products, delivery time, and return and cancellation policy
• KYC details: ID proof, address proof, and cancelled cheque
• Other details: Website, business logo, email ID, phone number, and store name

Programs for MSMEs

• MSME Trade Enablement and Marketing Initiative (MSME-TEAM) - This program provides financial assistance to MSEs for account management, logistics, packaging, and catalog preparation
• Onboarding assistance - This program provides hand-holding assistance to MSEs for onboarding onto the ONDC platform

Other initiatives

• ONDC aims to reduce digital monopolies and help small traders and MSEs access online platforms
• ONDC aims to increase e-commerce penetration in India

ONDC identifies 4 types of players - Buyer Network Participant, Seller Network Participant, Technology Service Provider and Gateway. In an unbundled network, there needs to be a seamless interaction between all participants to facilitate end- to-end e-commerce transactions. Each role is explained below.

Buyer Network Participant's Role on ONDC - Connects buyers to the ONDC network via a buyer application and shoulders buyer- facing responsibilities such as customer support, ensuring a seamless shopping experience, and providing a single checkout experience across categories.

Seller Network Participant's Role on ONDC - A Seller Network Participant is responsible for connecting sellers to the ONDC network through a seller application. They are also responsible for digitizing the sellers catalogue and dispersing payments. Additionally, they must train sellers on best practices in e-commerce to ensure quality fulfilment and provide a positive buying experience for customers.

• A Marketplace Seller Node (MSN) does not produce or manufacture any inventory of its own. It acts as a marketplace to offer goods and services that are provided by sellers.
• Inventory Seller Node (ISN) is any application operated by a seller who produces or manufactures and sells its own inventory. It doesn't include products/services by other sellers.

Gateways Role on ONDC - Gateways are essential components in an open-network ecosystem, serving as technology providers to ensure that all sellers in the ONDC Network can be discovered. They facilitate multicasting by forwarding search requests from buyer applications to all seller applications and vice versa, as specified in the ONDC Network Policies. The Gateway service enables manual searches by end consumers by providing relevant product/service information from ONDC's seller universe.

Technology Service Provider - Technology Service Providers (TSPs) are crucial in offering a range of software applications either as standalone solutions or via cloud-based services. As an outsourced software provider, TSPs enable seamless business operations on the network, empowering players to participate in e-commerce without requiring in-house technology capabilities. TSPs also serve as drivers for achieving ONDC goals and attracting businesses of various sizes to join the network.

For More Information Visit:- ONDC.ORG

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