Everything you need to know about ONDC, India's Open Network for Digital Commerce - how it works, how to buy and sell, and why it matters for consumers and small businesses in 2026.
India's e-commerce market is dominated by two or three giant platforms. Amazon and Flipkart together control roughly 60 to 65 percent of all online retail, setting the rules for sellers, controlling discovery algorithms and taking commissions that can eat 15 to 40 percent of a product's selling price. Small sellers and local shopkeepers have been squeezed for years.
ONDC, the Open Network for Digital Commerce, is India's answer to this problem. Launched by the Department for Promotion of Industry and Internal Trade (DPIIT), ONDC is not a single platform. It is an open protocol, a set of shared rules, that allows any buyer app to connect with any seller app, breaking the closed-garden monopoly of existing marketplaces.
Think of it this way: you do not need a Gmail account to email someone on Yahoo. Email works because there is an open protocol (SMTP) underneath. ONDC does the same for e-commerce.
How ONDC works - the architecture explained
ONDC is built on the Beckn protocol, an open-source framework for decentralised digital commerce. Here is how it functions in practice.
The three layers
- Buyer apps: these are the apps consumers use to browse and purchase. Examples include Paytm, Magicpin, myStore and Pincode by PhonePe. Each buyer app provides its own interface, search experience and payment integration.
- Seller apps: these are the platforms that sellers register on to list their products and services. Examples include Seller App by ONDC, Mystore Seller Hub, Digiit and eSamudaay. Sellers upload their catalogue, set prices and manage orders through these apps.
- ONDC gateway: this is the middle layer that connects buyer apps to seller apps. When you search for a product on any buyer app, the request goes through the ONDC gateway to all connected seller apps, and results from multiple sellers across multiple seller apps appear in one unified search.
The key difference from Amazon or Flipkart: no single company controls the entire chain. The buyer chooses their preferred buyer app, the seller chooses their preferred seller app, and the ONDC protocol ensures they can transact with each other regardless of which apps they use.
What can you buy on ONDC?
ONDC started with food delivery and grocery but has expanded significantly by 2026. Here are the categories currently active.
| Category | Examples | Popular buyer apps |
|---|---|---|
| Food delivery | Restaurants, cloud kitchens | Magicpin, Paytm |
| Grocery | Fresh produce, staples, packaged food | Paytm, Pincode |
| Fashion & apparel | Clothing, footwear, accessories | myStore, Paytm |
| Electronics | Mobiles, accessories, small appliances | Paytm, Pincode |
| Home & kitchen | Utensils, decor, furniture | myStore |
| Health & wellness | Medicines, supplements, personal care | Paytm |
| Mobility | Auto, cab rides | Namma Yatri, Yatri |
| Hotel & accommodation | Budget to mid-range hotels | OYO via ONDC |
| Agriculture inputs | Seeds, fertilisers, equipment | Various agri apps |
The product catalogue on ONDC is growing every month as more sellers join the network. In many pin codes, you can now order groceries and food with delivery times comparable to Swiggy or Zepto.
How to buy on ONDC - step by step
Buying on ONDC is simple. You just need a buyer app.
Step 1 - Download a buyer app
Install any ONDC-connected buyer app. Popular options include Paytm (which has integrated ONDC shopping into its main app), Magicpin, Pincode by PhonePe, and myStore.
Step 2 - Set your location
Enter your delivery address. The app uses your location to find nearby sellers registered on ONDC.
Step 3 - Search and browse
Search for a product or browse categories. Results come from sellers across multiple seller apps connected to ONDC, not just sellers on one platform.
Step 4 - Compare and add to cart
You can see product details, prices, seller ratings and delivery timelines. Add items to your cart.
Step 5 - Checkout and pay
Pay using UPI, debit card, credit card or net banking. The payment options depend on the buyer app.
Step 6 - Track and receive
Track your order within the buyer app. Delivery is handled by the seller or their logistics partner.
How to sell on ONDC - seller registration
If you are a shopkeeper, small manufacturer or any business that wants to sell online, ONDC offers a low-cost entry point compared to Amazon or Flipkart.
Step 1 - Choose a seller app
Register on an ONDC-connected seller app such as Mystore Seller Hub, Digiit, or eSamudaay. Each app has its own onboarding process and fee structure.
Step 2 - Provide business details
Submit your GSTIN, PAN, bank account details and business address. FSSAI licence is required for food-related businesses.
Step 3 - Upload your catalogue
List your products with descriptions, images, prices and stock levels. Many seller apps offer bulk upload tools and catalogue assistance.
Step 4 - Set delivery and return policies
Define your serviceable area, delivery charges, estimated delivery time and return/refund policies.
Step 5 - Start receiving orders
Once your catalogue is live, buyers across all ONDC buyer apps can discover and purchase your products.
Seller fees on ONDC vs marketplaces
| Cost component | ONDC (via seller app) | Amazon | Flipkart |
|---|---|---|---|
| Commission | 2 - 5% | 5 - 42% (category dependent) | 5 - 25% |
| Listing fee | Nil to minimal | Varies | Varies |
| Logistics | Seller-managed or third-party | FBA charges apply | Similar to Amazon |
| Payment gateway | 1 - 2% | Included in commission | Included |
| Catalogue control | Full control | Platform-controlled | Platform-controlled |
The dramatically lower commission on ONDC is its biggest selling point for small businesses. A local clothing store paying 25 percent commission on Flipkart might pay only 3 to 5 percent total fees on ONDC.
ONDC vs Amazon and Flipkart - key differences
| Feature | ONDC | Amazon/Flipkart |
|---|---|---|
| Ownership | Government-backed open protocol | Private companies |
| Discovery | Decentralised, multi-app | Controlled by platform algorithm |
| Seller commission | 2-5% | 5-42% |
| Data ownership | Seller retains data | Platform owns customer data |
| Customer lock-in | None (switch buyer apps freely) | High (ecosystem lock-in) |
| Product pricing | Seller-controlled | Often platform-influenced |
| Delivery speed | Improving, varies by seller | Generally faster (established logistics) |
| Product range | Growing rapidly | Extensive, millions of SKUs |
| Buyer protection | Improving, app-dependent | Established policies |
Benefits for consumers
- Lower prices: with lower seller commissions, many products are genuinely cheaper on ONDC
- Support local businesses: buy from the kirana store or local bakery down the street
- No platform lock-in: switch buyer apps without losing access to sellers
- More competition: multiple buyer and seller apps compete on service quality, not monopoly power
Benefits for sellers
- Dramatically lower fees: keep more of every sale compared to Amazon or Flipkart
- Own your data: customer information stays with you, not the platform
- Level playing field: no algorithm suppression or pay-to-rank schemes
- Multiple buyer app visibility: list once and appear across all connected buyer apps
- No exclusivity requirements: sell on ONDC alongside other platforms
Current challenges and limitations
ONDC is still maturing. Here are the honest challenges as of 2026.
- Delivery speed: in many areas, delivery is slower than Swiggy Instamart or Blinkit. This is improving as more logistics providers join.
- Product discovery: search and recommendation algorithms are less sophisticated than Amazon's.
- Return and refund experience: policies vary by seller app and can be inconsistent.
- Catalogue quality: some sellers have poor product images and descriptions.
- Consumer awareness: most Indians still do not know what ONDC is.
Despite these challenges, ONDC transaction volumes have grown over 1,000 percent year-on-year, and government push continues to bring more categories and cities online.
The bigger picture - why ONDC matters for India
ONDC is part of India's broader digital public infrastructure strategy, the same philosophy that created UPI for payments, DigiLocker for documents and CoWIN for vaccination. The idea is to build open, interoperable protocols that prevent monopolies and ensure fair access for everyone.
Just as UPI democratised digital payments by allowing any bank to connect with any app, ONDC aims to democratise e-commerce by allowing any buyer to connect with any seller without a middleman extracting 20 to 40 percent of the value.
For India's 70 million-plus small retailers, street vendors and micro-enterprises, ONDC represents a genuine opportunity to participate in the digital economy without surrendering their margins or customer relationships to a platform.
This article is for educational purposes and does not constitute financial advice.
Frequently asked questions
What is ONDC and who owns it?
ONDC stands for Open Network for Digital Commerce. It is a government-backed initiative by the Department for Promotion of Industry and Internal Trade (DPIIT). ONDC is not a single platform or app. It is an open protocol that connects multiple buyer apps with multiple seller apps, enabling decentralised e-commerce without a single company controlling the marketplace.
How do I buy on ONDC?
Download any ONDC-connected buyer app such as Paytm, Magicpin, Pincode by PhonePe or myStore. Set your delivery location, browse products, add to cart and pay using UPI, card or net banking. Products from sellers across multiple seller apps appear in your search results.
Is ONDC cheaper than Amazon and Flipkart?
In many categories, yes. Because ONDC charges sellers only 2 to 5 percent commission compared to 5 to 42 percent on Amazon or Flipkart, sellers can afford to price their products lower. The savings are most visible in food delivery, grocery and local products.
How can a seller register on ONDC?
Choose an ONDC-connected seller app like Mystore Seller Hub, Digiit or eSamudaay. Register with your GSTIN, PAN and bank details. Upload your product catalogue with images and prices. Once verified, your products become discoverable across all ONDC buyer apps.
Is ONDC available in my city?
ONDC is operational across 1,000-plus cities and towns in India as of 2026, including all major metros and most tier-2 cities. The number of serviceable pin codes is expanding every month. Download a buyer app and enter your location to check availability in your area.
Can I sell food and homemade products on ONDC?
Yes. Food businesses need an FSSAI licence along with GSTIN. Homemade food sellers, cloud kitchens, bakeries and home chefs can register on ONDC through seller apps that support the food and grocery category. The process is simpler and cheaper than listing on Swiggy or Zomato.
Is ONDC safe for online payments?
Yes. Payments on ONDC are processed through standard payment gateways and UPI, the same infrastructure used by every major e-commerce platform in India. Buyer apps are regulated and follow RBI guidelines for digital payments. Always use trusted buyer apps from the Google Play Store or Apple App Store.
What is the difference between ONDC and UPI?
UPI is an open protocol for digital payments. It allows any bank to connect with any payment app. ONDC applies the same open-protocol concept to e-commerce. It allows any buyer app to connect with any seller app. Both are part of India's digital public infrastructure strategy.
Does ONDC deliver as fast as Swiggy or Blinkit?
Currently, delivery speed on ONDC varies by seller and location. In major cities, food delivery is often comparable to Swiggy or Zomato. For grocery, delivery times are typically 30 minutes to a few hours depending on the seller. Quick commerce speeds of 10 to 15 minutes are not yet common on ONDC but are improving.