--- title: India’s new ecommerce system, explained - The Hustle description: India’s Open Network for Digital Commerce could make ecommerce easier for smaller sellers. Would it work elsewhere? image: https://hs-sbup.thehustle.co/hubfs/The%20Hustle%20News/Assets/Images/2026177584-busy_street-1024x683.webp --- # India’s new ecommerce system, explained ![Juliet Bennett Rylah](https://53.fs1.hubspotusercontent-na1.net/hubfs/53/assets/hubspot.com/web-team/WBZ/HubSpot%20Media/Blog%202021/Images/Nav/Optimized/TheHustle_Icon_Dark.svg) [Juliet Bennett Rylah](https://hs-sbup.thehustle.co/author/juliet-bennett-rylah) [Juliet Bennett Rylah Twitter profile ](https://twitter.com/JBRylah) Published: August 08, 2022 Updated: October 11, 2023 It’s $8 from Target, but $6 shipping. Amazon’s $12 with free shipping, but only with Prime. *Wait, does the corner store have this?*  ![India’s new ecommerce system, explained](https://hs-sbup.thehustle.co/hs-fs/hubfs/The%20Hustle%20News/Assets/Images/2026177584-busy_street-1024x683.webp?width=595&height=400&name=2026177584-busy_street-1024x683.webp) India’s Open Network for Digital Commerce (ONDC) is a government-backed initiative rolling out from five to 100 cities this month — proponents say it could revolutionize ecommerce. #### **India has an ecommerce duopoly… ** … in which Amazon and Walmart-owned Flipkart control 60%+ of the market, [per](https://www.reuters.com/world/india/what-is-ondc-indias-project-an-open-e-commerce-network-2022-06-01/) *Reuters, *and can squeeze out little guys by limiting search results and favoring certain sellers. ONDC isn’t a competing platform, but a network that platforms and sellers can join, with the goal of leveling the playing field for small businesses across retail, travel, food delivery, and other sectors.  - **Customers** get a [one-stop shop](https://www.youtube.com/watch?v=ugykOPSXskQ). Searching for a shirt returns results and prices from *all* participating sellers, including local merchants. [Unbundled](https://restofworld.org/2022/newsletter-south-asia-indias-open-e-commerce-plan/) services mean shoppers choose delivery providers.   - **Businesses** manage one online inventory but appear in searches across platforms. Commissions are capped at 3% — a tenth of what sellers often lose on large platforms, [per](https://fortune.com/2022/08/02/why-india-could-single-handedly-shape-the-future-of-e-commerce-this-summer-vivek-wadhwa-alex-salkever/) *Fortune*. Amazon and Flipkart are reportedly in talks [to join](https://economictimes.indiatimes.com/tech/technology/flipkart-ril-amazon-may-join-ondc/articleshow/91500926.cms), as is [Google](https://timesofindia.indiatimes.com/business/india-business/google-in-talks-to-join-open-e-commerce-network-ondc/articleshow/91828339.cms); Ekart, Flipkart’s logistics arm, already has. #### **Could this work elsewhere?** Billionaire and Infosys founder **Nandan Nilekani** told *Fortune* he hopes ONDC will “provide a glimpse for the whole world of how open commerce can drive positive non-zero-sum outcomes for business and society.” *2pm* posits that, in the US, D2C retailers would benefit from increased visibility and spending less on Google and Meta ads, but wonders if the US could generate support — from the government and figures like Nilekani  — to make it happen.  **More: **Nilekani [discussed](https://www.youtube.com/watch?v=cziZ_Hmv_IQ) ONDC at Startup India Innovation Week 2022. 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