25 Jul Open Network for Digital Commerce Academy
This article covers “Daily Current Affairs” and the topic details “Open Network for Digital Commerce Academy”. The topic “Open Network for Digital Commerce Academy” has relevance in the “Indian Economy” section of the UPSC CSE exam.
What is Open Network for Digital Commerce Academy? What is Open Network for Digital Commerce?
GS3: Indian Economy
Why in the news?
On 21st July 2023, the ONDC Academy, a repository of online training material for merchants, was launched by the government-backed e-commerce protocol, the Open Network for Digital Commerce (ONDC).
- The ONDC Academy is an e-learning program available to all participants on the open network, featuring assessments and certifications provided by NSE Academy Limited. NSE Academy is a subsidiary of NSE Investments established to enhance financial literacy and offer training in banking, insurance, and financial markets.
- The primary goal of ONDC Academy is to
- empower individuals with knowledge to make well-informed decisions,
- minimise operational challenges,
- maximise efficiency while engaging in e-commerce on the open network.
- The training material is available on the ONDC website and YouTube. The first course, “ONDC Academy Seller Network Participant Excellence,” is already active.
- The Seller Network Participant course is specifically designed to guide sellers on the network, covering various operational aspects crucial for running a successful online business. Topics include seller onboarding, persuading sellers to join ONDC, catalogue management, order handling, seller management, and packaging.
- The course is structured into multiple modules such as introduction to digital commerce, seller onboarding, catalogue creation, order management system, packaging, and more. Each module includes relevant chapters to thoroughly explain the subject matter.
Open Network for Digital Commerce (ONDC)
- The Open Network for Digital Commerce (ONDC) is an initiative by the Department of Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce, Government of India, aimed at revolutionizing digital commerce and promoting the growth of retail e-commerce in the country.
- The project’s inception took place at the Quality Council of India, an autonomous organization under DPIIT, where the foundational work for ONDC was initiated with a mission-oriented approach.
- ONDC, backed by the Government of India, is a technology infrastructure that operates on a network-centric model. It allows buyers and sellers to conduct transactions regardless of the platforms or applications they use, as long as those platforms are connected to the open network.
- This approach surpasses the existing platform-centric digital commerce model, where both buyers and sellers are limited to using the same platform or application to conduct business digitally.
Major ONDC objectives:
- Making eCommerce more democratic and decentralized
- Ensuring inclusivity and accessibility for sellers, particularly small and medium enterprises and local businesses
- Expanding consumer choices and independence
Advantages of ONDC include:
- Increased competition: ONDC will reduce the dominance of a few large e-commerce platforms, giving small businesses and entrepreneurs a fairer chance to compete.
- Lower prices: ONDC is expected to lead to lower prices for consumers, as businesses will be able to reduce their costs by avoiding the high fees charged by the current e-commerce platforms.
- Greater choice: ONDC will make it easier for consumers to find the products and services they want, as they will be able to shop from a wider range of sellers.
- Improved transparency: ONDC will increase transparency in the e-commerce market, as buyers will be able to compare prices and products more easily.
- Enhanced interoperability: ONDC will enable interoperability between different e-commerce platforms, making it easier for consumers to switch between platforms.
- Support for local businesses: ONDC will support local businesses by making it easier for them to sell their products online.
- Improved access to rural markets: ONDC will improve access to rural markets, as it will be easier for businesses to reach consumers in these areas.
Challenges with ONDC:
- Lack of awareness: Many businesses and consumers are not aware of ONDC, which could hinder its adoption.
- Technical challenges: ONDC is a complex platform, and there are some technical challenges that need to be addressed before it can be fully implemented.
- Competition from existing platforms: ONDC will face competition from the existing e-commerce platforms, which have a large user base and a strong brand presence.
- Regulation: The government needs to put in place clear regulations for ONDC to ensure that it operates in a fair and transparent manner.
- Acceptance by sellers: ONDC will need to be accepted by sellers in order to be successful. Some sellers may be reluctant to switch to ONDC, as they may be comfortable with the existing platforms.
- Lack of a Robust Grievance Redressal Mechanism: The lack of clarity on responsibility for customer service and handling complaints may deter people from joining the platform.
In conclusion, the ‘Open Network for Digital Commerce’ (ONDC) holds significant promise for transforming the e-commerce landscape in India. By promoting inclusivity, decentralisation, and fair competition, ONDC can empower small businesses, provide consumers with more choices, and increase transparency in the market. To ensure its successful implementation, addressing technical challenges, raising awareness, establishing clear regulations, and implementing a robust grievance redressal mechanism are crucial steps forward.
Infographics – Internet Freedom Foundation
Q1. With reference Open Network for Digital Commerce (ONDC), consider the following statements:
- ONDC is a technology infrastructure backed by the Government of India.
- ONDC follows a platform-centric digital commerce model.
- ONDC aims to promote democratisation and decentralisation of eCommerce.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 3 only
(d) 1, 2 and 3
Q2. Consider the following statements:
- Open Network for Digital Commerce (ONDC) is expected to lead to lower prices for consumers due to reduced business costs.
- ONDC will restrict consumer choices as it focuses on a limited range of sellers.
- ONDC will improve transparency in the e-commerce market, making price comparison easier.
- ONDC will allow interoperability between different e-commerce platforms.
How many of the abovementioned statement/s is/are correct ?
(a) Only one
(b) Only two
(c) Only three
(d) All Four
Q3. Discuss the major objectives of Open Network for Digital Commerce (ONDC) and its potential impact on democratising and decentralising eCommerce in India.