ONDC is not a single app, it’s a network that connects multiple buyer apps, seller apps, and service providers.

If you’ve shopped online in India, chances are you’ve used Amazon, Flipkart or maybe a few niche apps. But here’s the problem: a handful of platforms control almost the entire e-commerce market. That means small sellers struggle to stand out and buyers don’t always get the best variety or prices.

That’s why the government launched ONDC (Open Network for Digital Commerce): an open network that aims to do for e-commerce what UPI did for digital payments.

In this guide, we’ll break down what is ONDC, how does ONDC work and why it could change online shopping in India forever.

What is ONDC?

The full form of ONDC is Open Network for Digital Commerce. Simply put, it’s a government-backed initiative to create an open marketplace where buyers and sellers can connect, no matter which app they use.

Think of ONDC meaning as this: instead of being restricted to closed platforms like Amazon or Flipkart, a seller can list their products once on the ONDC platform, and those products instantly become visible on multiple ONDC apps like Paytm, PhonePe, Mystore, etc.

Example: Just like UPI allows you to send money from Paytm to Google Pay, ONDC allows you to shop across apps.

How Does ONDC Work?

Now, let’s answer the big question: how does ONDC work?

ONDC is not a single app, it’s a network that connects multiple buyer apps, seller apps, and service providers. For example, if a shopkeeper uploads their product catalog on one partner app, that product automatically becomes discoverable on all ONDC-enabled buyer apps.

So a consumer browsing Paytm can easily purchase from a seller who listed items on Mystore. The order is completed through ONDC’s infrastructure, which handles discovery, payments, and even logistics.

Here’s the step-by-step process:

Sellers list products on an ONDC seller app or partner platform.
Buyers open any ONDC app (Paytm, PhonePe, Mystore, etc.) and search for a product.
The product appears, even if the seller listed it on another platform.
Buyers place an order and ONDC connects them with logistics and payment providers.

In short, ONDC is not an app itself, it’s a decentralized marketplace that connects multiple buyer apps, seller apps and service providers.

Key Features of ONDC Platform

The ONDC platform features are designed to benefit both sellers and consumers:

Decentralization – No single company controls it
Interoperability – A buyer on Paytm can order from a seller on GoFrugal
Consumer-Centric – More choices, better prices, faster delivery.
Flexibility for Sellers – Choose your own logistics and payment partners.
Inclusivity – From big retailers to local kirana stores, everyone can join.

This means small businesses now have a chance to compete fairly in the digital world.

ONDC for Businesses: Why It Matters

So, how does ONDC work for online retailers?

Quite simply, it gives them visibility across a wider customer base without needing to spend heavily on advertising or depend only on Amazon and Flipkart.

Here’s how sellers benefit from ONDC in India:

Wider Reach: One listing, multiple apps → higher visibility.
Lower Costs: Less dependence on platforms like Amazon/Flipkart that charge high commissions.
Level Playing Field: Local shops compete alongside large brands.
Direct Customer Access: Build trust with buyers without relying on one big platform.

For small businesses, these ONDC platform features are a major opportunity to grow online.

ONDC and the Consumer Experience

For buyers, ONDC shopping feels familiar but more empowering. Instead of being restricted to one app, consumers can discover products from multiple sellers across India, all in one place.

Price competition means better deals, while transparency allows customers to compare stock, delivery times, and costs. And it’s not just shopping,ONDC food delivery is already gaining traction. By placing an ONDC food order through apps like Paytm or Magicpin, consumers can often get meals at lower prices compared to Swiggy or Zomato.

Here’s how it improves the experience:

More Variety – From big brands to local stores.
Better Deals – Competition among sellers means competitive pricing.
Easy Access – Just use your favorite ONDC app (PhonePe, Paytm, etc.)
Transparency – Compare delivery times, stock, and pricing in real time.

How to Order on ONDC

Using ONDC as a consumer is simple. Just download any ONDC app such as PhonePe, Paytm, or Mystore, and browse for groceries, food, or other products. Once you find what you want, you can compare sellers, select the best deal, and place an order. This is how to order on ONDC in just a few taps, no different from other e-commerce apps, except with more choices.

For sellers, the process is also straightforward. They need to register with a partner platform, upload their catalog and integrate logistics. Once that’s done, their products automatically go live across the ONDC marketplace, opening them up to millions of potential buyers.

For Buyers (Consumers)

Wondering how to order on ONDC? It’s easy:

Download any ONDC-enabled app (PhonePe, Paytm, Mystore, etc.).
Search for products, groceries, or even food delivery.
Compare sellers and prices.
Place an order → doorstep delivery, just like other platforms.

For Sellers (Businesses)

Here’s how to use ONDC as a seller:

Register through an ONDC seller app (Mystore, Paytm, GoFrugal, etc.).
Upload your product catalog.
Choose delivery and payment providers.
Go live and start selling—your products are visible across the ONDC marketplace.

Real Life Example of Using ONDC

Let’s say you open your ONDC app (like PhonePe or Paytm) and search for “Basmati Rice.” You’ll see listings from local kirana stores, regional wholesalers, and big brands—all in one place. You can compare prices, check delivery times, and pick the best option for you. This is the simplest way to understand how to order on ONDC—it works just like other e-commerce apps but gives you more control and better deals.

Challenges of ONDC

Like any new system, ONDC adoption comes with challenges:

Awareness: Many sellers and buyers still don’t know about it.
Technology Barriers: Small shops may need support to get online.
Service Quality: Ensuring consistent delivery and customer service across multiple apps.

But with growing government support and big apps integrating, these challenges are being addressed.

Future of ONDC in India

The future of ONDC in India looks transformative, much like how UPI changed digital payments. As adoption grows, millions of small retailers, kirana stores, and startups are expected to join the ONDC marketplace, making it one of the most inclusive digital ecosystems in the world.

For consumers, this means more affordable options in ONDC shopping, groceries, and even ONDC food delivery, all accessible through their preferred ONDC app like Paytm or PhonePe. Sellers will also gain a level playing field, as they no longer need to depend solely on big platforms.

Instead, they can list once and reach buyers everywhere, thanks to the way how does ONDC work by connecting multiple buyer and seller apps seamlessly. In the coming years, learning how to use ONDC could become as common as learning how to use UPI, with ONDC powering everything from daily essentials to large-scale retail, making digital commerce more open, affordable and fair for all.

The future of ONDC in India looks bright. Experts believe it could become the default e-commerce system, much like UPI did for payments.

More Sellers: Millions of local businesses could join.
More Buyers: Consumers will enjoy more options at better prices.
Global Inspiration: If successful, ONDC could become a model for other countries.

Beyond ONDC food delivery and ONDC shopping, the network is also set to expand into areas like mobility, logistics, agriculture, and financial services. This means the ONDC marketplace won’t just be about buying and selling products, it will become a complete digital commerce in India ecosystem. For sellers, this diversification opens new revenue streams, while for consumers it ensures more convenience and competitive prices across categories. As adoption grows, ONDC’s impact on e-commerce transformation in India could be as revolutionary as UPI’s effect on digital payments.

ONDC and Its Impact on Digital Marketplaces

One of the biggest shifts ONDC brings is the decentralization of online retail. Traditionally, a few e-commerce platforms in India have dominated the market, limiting both choice and pricing power. But with ONDC, the playing field changes. Sellers of all sizes whether they are kirana stores, local artisans, or big brands get equal visibility on the ONDC marketplace. This creates a more transparent and competitive system that benefits consumers and helps businesses grow sustainably.

Why ONDC Is Important for India’s E-Commerce Sector

India’s e-commerce industry is growing rapidly, but it has often been criticized for being too centralized. By creating an interoperable e-commerce platform, ONDC ensures inclusivity and innovation. It supports consumer empowerment in digital commerce by giving users more control over their shopping choices and data. At the same time, sellers can select logistics, payments, and service providers of their choice, reducing dependency on costly closed systems.

Conclusion

So, what is ONDC? It’s India’s bold step to democratize online shopping by creating an open, fair and inclusive marketplace.

For businesses, ONDC means wider reach and lower costs. For consumers, it means better prices, more variety, and the convenience of using your favorite app.

Whether you’re placing an ONDC food order, exploring ONDC shopping, or running a small business, this new system is set to change the way India shops online.

✨ Pro Tip: Download an ONDC app today and try ordering groceries or food; you’ll see the future of e-commerce in action.

What is ONDC and How It Works | Beginner’s Guide