The Importance of ONDC Registration for Businesses in 2024: A Step-by-Step Process.

In the past few years, the shopping habits of Indians have changed drastically. E-commerce and online shopping are gradually replacing traditional physical stores. This has created yet another challenge for small business as top marketplaces like Amazon and Flipkart charge hefty commissions. To help such businesses, the government of India introduced the Open Network for Digital Commerce (ONDC).

Overview of ONDC

Name of the network	Open Network for Digital Commerce
Industry	E-Commerce
Established on	31st December 2022
Founder	Department for Promotion of Industry and Internal Trade (DPIIT), Government of India
Area Served	India
Official Website	https://ondc.org/

Prerequisite for ONDC Seller Registration

There are multiple apps that let you register on the ONDC. You can choose any of the apps to become a seller. However, there are a few documents that you should have before becoming a certified seller on ONDC.

• GSTIN of your business: Ensure you have your Goods and Services Tax Identification Number (GSTIN) handy. This is a unique identification number assigned to your business by the government for tax purposes.
• Contact details of authorised personnel: Provide the contact details of the authorised personnel. This includes their full name, email address, and phone number.
• Bank account details: Submit the bank account details of your business including the account number, branch name, and IFSC code. This information is necessary for financial transactions related to your ONDC seller account.
• Onboarding agreement – Understand the onboarding agreement provided by ONDC and agree to its terms and conditions.

How to register on ONDC as a seller?

ONDC is a network that has tie-ups with multiple apps that sell different products. You can join through any of these apps. For example, if you want to sell electronics then you can join through BoAT. If you want to sell groceries and food then you can join through Mystore.

Another way to join ONDC is by building an application from scratch. However, the easiest way to join ONDC is by signing up through a TSP (Technology Service Provider). The steps to do as are explained below.

• To begin registration through the seller app,  you need to go to the registration website of that app. Let’s take an example of Mystore, its website for sellers is seller.mystore.in. So, you need to register on the same site.
• Complete your profile for seller KYC by providing some crucial details. These details include product information, business logo, website, address, contact details, bank account information, cancelled cheque, GSTIN, address and ID proof, delivery time, cancellation and return policy, use of network logistics, category of goods, and store timings.
• KYC review and account approval may take 2-3 business days. Once approved, the seller app will make you visible on buyer apps.
• When a buyer searches for a specific item on a buyer app, they will see sellers from different seller apps where the item can be purchased.

Apps Available to Sell on ONDC

You can sell your products ONDC through any of the following apps.

Apps	Categories	Channel (B2B/ B2C)
Bitsilla	Beauty and Personal Care	B2C
Boat	Electronics & Appliances	B2C
Craftsvilla	Beauty and Personal Care	B2C
Digiit	Agriculture	B2C
Orderde by SignCatch	Grocery	B2B
PayTM	Food & Beverages	B2C
SleepyOwl	Grocery	B2C
Mystore	Agriculture	B2C
Namma Yatri	Mobility	B2C
WOW	Beauty and Personal Care	B2C
Yatri	Mobility	B2C

Commission Charges on ONDC

As per ONDC, they don’t charge or recommend any kind of commission. However, the seller app through which you will be becoming a seller can charge you. The amount of commission depends on the discussion and agreement between the seller and seller app.

Generally, most of these apps agree to a commission of around 3% to 5%. It is seven to eight times less than the amount you will have to pay on Flipkart and Amazon.

Tips for Choosing the Seller App

Choosing the correct seller app for ONDC registration can be confusing. Go through the following tips to make an informed decision.

• Research different seller apps to find the best app fit for your product. For example, BoAt is an excellent choice to sell electronics and WOW is great for Beauty products.
• Consider the target audience and demographics of each seller app.
• Look for a seller app with a user-friendly interface and easy navigation
• Check the reputation and credibility of the app among sellers.
• Evaluate fees and charges. Compare the costs associated with listing, selling, and any additional services provided.
• Read reviews and testimonials. Seek feedback from other sellers to check their experiences and satisfaction.
• Assess the app’s reach in terms of geographic coverage and selling opportunities if relevant to your business.

Main objectives of ONDC

As per the ONDC, its major objectives are as follows.

1. Ending the monopolies of giant online marketplaces like Flipkart and Amazon.
2. Decentralisation and Democratisation of the e-commerce industry in India.
3. Increasing efficiency in logistics to help online sellers.
4. Providing better customer reach at low cost to small and medium enterprises.
5. Offering customers more choices in terms of online marketplaces.
6. Curbing the cost of operations in e-commerce.
7. Making sure the data of customers remains protected.
8. Overall standardization of e-Commerce in India.
9. Facilitate access to a wide range of products and services for consumers.
10. Improved customer trust and confidence due to the secure and transparent nature of the ecosystem.

Frequently Asked Questions