Retail - #SectorUpdates

The future of open retail is taking shape in India, as the nation rolls out the Open Network for Digital Commerce (ONDC) in 100 cities this month. Spearheaded by Infosys founder Nandan Nilekani, ONDC is a non-profit designed to create a level-playing field in online commerce. It puts tens of millions of kirana stores on a more even footing with online giants such as Amazon, Google, and Flipkart. According to Reuters, Amazon and Flipkart control more than 60% of the Indian e-commerce market. ONDC caps referral commissions for platforms that send shoppers to a seller at 3%, a far cry from the roughly 30% cut that third-party sellers lose on the existing major e-commerce platforms. ONDC is expected to make e-commerce more inclusive and accessible for consumers. The idea of ONDC is to establish public digital infrastructure on which the industry participants can develop and implement a variety of services.

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