The Indian government’s Open Network Digital Commerce (ONDC) e-commerce protocol has recently made headlines due to its low food delivery prices and changes to its incentive policy for seller-side apps. ONDC stated that the incentives were originally introduced when the platform had less than 100 transactions per day, with the program resulting in a 100-fold increase in the number of transactions. ONDC believes that this momentum can continue without the incentives, with an average of over 10,000 orders now being processed daily.
ONDC stated that their goal was to broaden activity and awareness of an unbundled, interoperable e-commerce platform and build confidence and acceptance that such a system can work effectively. They also noted that the stimulus program was designed for a limited time and scale and is under constant review. The latest adjustments made by ONDC to the seller-side app incentive policy come after a surge in the number of transactions on the platform.
According to the circular accessed by some reports, ONDC’s incentives for seller-side apps will now be capped at INR 2,25,000 per seller-side app per day and INR 3,750 per seller per day. The suggested modification to the program reads, “Subsidised Delivery Cost for Buyers,” with the following clauses:
Existing Clause: Up to INR 75 discount to be provided for on-network and off-network logistics for buyers on every eligible order.
New Clause: Up to INR 75 discount to be provided for on-network and off-network logistics for buyers on every eligible order with the following additional conditions:
Maximum incentive of INR 2,25,000 per Seller NP per day.
Maximum incentive of INR 3,750 per seller per day.
ONDC hopes that these adjustments will continue to promote the use of its e-commerce platform and demonstrate the viability and effectiveness of an interoperable, unbundled system. As the e-commerce industry in India continues to grow, ONDC’s developments and policies will be closely monitored by industry experts and consumers alike.
