What Is ONDC? How India’s New Digital Commerce System Works (2025 Guide)
ONDC (Open Network for Digital Commerce) is one of the biggest digital transformations happening in India. Just like UPI changed the way people make payments, ONDC aims to change how Indians buy and sell online. If you’ve ever wondered what ONDC is, how it works, which apps support it, or whether it will disrupt major platforms like Amazon and Zomato, this simple 2025 guide explains everything you need to know.
What Is ONDC?
ONDC is an open digital commerce network created by the Government of India. Instead of being a single website or app, it is a network that connects buyers, sellers, and logistics providers across multiple platforms. Anyone can join the network—small shops, large brands, delivery partners, or consumers.
Think of ONDC like UPI:
- UPI allows you to pay using any app (PhonePe, Google Pay, Paytm).
- ONDC allows you to shop using any supported app (Paytm, PhonePe, Meesho, Magicpin).
The core idea is simple: no single company controls the marketplace. Everything is open, interoperable, and competitive.
How Does ONDC Work?
ONDC is built on an open network protocol. This means different apps can communicate with each other.
Here’s how a typical ONDC order works:
- You search for a product or food on an ONDC-enabled buyer app (like Paytm).
- The app sends your request to the ONDC network.
- All sellers across India selling that product can appear in results.
- You choose a seller, pay, and place your order.
- Delivery happens through any ONDC logistics partner.
The important thing: buyers and sellers don’t need to be on the same app.
Apps That Support ONDC in 2025
Buyer Apps
- Paytm
- PhonePe (Pincode)
- Meesho
- Magicpin
- Mystore
Seller Apps
- Seller App by ONDC
- GoFrugal
- nStore
- GrowthFalcons
- eSamudaay
More apps join every month, making the network larger.
Why Did India Create ONDC?
Before ONDC, e-commerce was controlled by a few major platforms like Amazon, Swiggy, Zomato, and Flipkart. Small shops had to join these platforms and pay high commissions. ONDC solves this problem by offering an open and fair marketplace.
Key Reasons Behind ONDC
- To give equal opportunity to small businesses
- To reduce high commissions charged by big companies
- To allow more platforms to compete
- To increase digital commerce adoption across India
Benefits of ONDC for Buyers
- Lower prices because of higher competition
- More shops and sellers to choose from
- No need to switch between multiple apps
- Faster delivery due to multiple logistics partners
Benefits of ONDC for Sellers
- No dependency on Amazon or Flipkart
- Lower commission fees
- Direct access to customers across India
- Freedom to sell through any seller app
ONDC Categories Available in 2025
ONDC supports multiple categories:
- Food Delivery (restaurants, home chefs)
- Groceries
- Fashion & lifestyle
- Electronics
- Mobiles & accessories
- Beauty products
- Services (future expansion)
Is ONDC Cheaper Than Swiggy and Zomato?
Yes, most of the time. Since ONDC charges lower commissions, restaurants can list food at cheaper prices. In many cities, users already see 20–40% lower prices compared to other delivery apps.
Real-Life Example of ONDC Order
Imagine you open Paytm and search for "burgers".
You may see results from:
- Local restaurants
- Cloud kitchens
- New sellers not available on Zomato
If the price is cheaper and delivery is fast, you place the order. Delivery may be handled by a logistics partner like Dunzo, LoadShare, or Shadowfax.
Will ONDC Replace Amazon, Flipkart, Swiggy & Zomato?
Not completely. These apps will still exist, but ONDC will increase competition and reduce their dominance. In the coming years, customers may prefer buying through ONDC apps because of better prices.
Challenges ONDC Faces in 2025
- Maintaining delivery efficiency
- Ensuring quality control across many sellers
- Training small businesses to use the system
- Building trust among users
However, as more sellers join and more apps integrate, ONDC continues to grow rapidly.
Future of ONDC in India
Experts believe ONDC will become the backbone of India’s digital commerce system by 2030. It may expand beyond shopping into services like travel, healthcare, mobility, and ticket bookings—just like UPI expanded beyond simple payments.
Final Thoughts
ONDC is a massive step towards an open, competitive, and fair digital commerce ecosystem. Whether you're a buyer looking for better prices, a seller wanting more visibility, or a business planning to join digital commerce, ONDC is a game-changing opportunity in 2025 and beyond.
