What Is ONDC, in Plain English
ONDC — the Open Network for Digital Commerce — is a government-backed, open network that lets any seller reach online buyers without being locked into a single marketplace. Instead of listing only on Amazon or Flipkart, you list once on a seller app connected to ONDC, and customers can discover you through many different buyer apps. It was built specifically to bring India’s 12 million-plus kirana stores and small sellers online at a fair cost.
Why Small Sellers Are Paying Attention
The appeal comes down to reach and economics:
- Lower commissions: Typically 3% to 10%, versus 25%-plus on traditional marketplaces — a huge difference on thin retail margins.
- Not locked to one platform: One listing can appear across many buyer apps, so you are not dependent on a single marketplace’s rules.
- Built for small sellers: A sole proprietorship is enough to start; you do not need to be a big brand.
- Scale already there: The network spans hundreds of cities with lakhs of sellers and 100-plus buyer apps.
For a local shop that wants online orders without handing 25% to a platform, ONDC is worth a serious look. It complements — not replaces — your counter sales, much like taking orders on WhatsApp.
Who Should Consider Joining
- Kirana and grocery stores wanting local online delivery.
- Retailers in fashion, electronics, home, and similar categories.
- Small manufacturers and D2C sellers looking for cheaper reach.
- Local service providers in supported categories.
If your margins are thin and marketplace commissions have been eating them, ONDC’s lower fees are the main draw.
What You Need to Start
- Business identity: A sole proprietorship is enough to begin; a PAN card and bank account are required.
- GST registration if your turnover crosses the threshold (around ₹40 lakh for goods) — and it is often expected for smooth onboarding.
- A product catalogue: Clean product names, prices, and images. This is where good records pay off.
- Fulfilment plan: How you will pack and deliver orders (self-delivery or a logistics partner).
Getting your Udyam registration and GST in order first makes onboarding smoother.
How Onboarding Works
You do not connect to ONDC directly. You join through a Seller Network Participant (SNP) — a seller app that has built the tools to plug into the network. You pick a seller app, register your business, upload your catalogue, and go live. Several seller apps exist across categories; compare their fees, categories supported, and ease of use before choosing one.
Be Realistic: The Honest Challenges
ONDC is promising, but it is not a magic traffic tap. Small sellers report real friction:
- Listing alone is not enough. Getting seen often needs promotion or ads inside buyer apps, which adds cost.
- Total cost of doing business — packaging, delivery, returns — can still be significant even with low commissions.
- Catalogue quality matters. Poor images and incomplete details sink visibility.
- Operations discipline: You must keep stock, prices, and availability accurate or you will cancel orders and hurt your rating.
Treat ONDC as an additional channel to test and learn, not an overnight revenue jump.
Prepare Your Back Office First
Online selling exposes weak inventory and pricing systems fast. Before you go live, make sure you have accurate real-time stock (so you do not sell what you do not have), clean product data, and GST-correct pricing. This is exactly where a billing-and-inventory system earns its keep — the same catalogue and stock that runs your counter can feed your ONDC listing. Tight inventory management and low-stock alerts keep your online availability honest.
Conclusion
ONDC gives small Indian sellers a genuinely cheaper route to online customers — 3% to 10% commission and reach across many buyer apps, built with kirana stores in mind. It is not effortless: visibility takes work and operations must be tight. But for a shop tired of high marketplace fees, it is one of the most important channels to understand in 2026. Get your registration, catalogue, and stock in order first — InfiBis keeps billing, inventory, and pricing in one place so the data behind your online listing stays accurate. Pair it with a strong Google Business Profile to get found both online and nearby.