How Sellers Are Reducing Logistics Cost and Commission on ONDC

India’s digital commerce ecosystem is undergoing a structural shift—from high-commission, closed marketplaces to an open, interoperable network model powered by ONDC.

What started as a policy initiative is now a production-scale commerce network.

As per the latest ONDC network data:

• Total orders placed: 83,864,322+
  
  
• Active sellers: 167,468 sellers
  
  
• Geographic reach: 862 districts across India
  
  
• Top-performing state: Karnataka, recording the highest order volume on ONDC
  
  
• Adoption spans metros, Tier-2, Tier-3 cities, and deep Bharat markets
  
  

The biggest questions sellers ask today are simple:

• How do I reduce logistics cost?
  
  
• How do I avoid high commissions?
  
  
• How do I sell online without burning money on marketing?
  
  
• How do I scale reliably across locations?
  
  

ONDC makes this possible—but the real advantage depends on which ONDC seller platform you choose.

Best Low-Cost Logistics Through ONDC

One of the most powerful promises of ONDC is logistics unbundling.

Unlike traditional marketplaces where logistics pricing is fixed and opaque, ONDC allows seller platforms to:

• Integrate multiple logistics partners
  
  
• Negotiate better rates
  
  
• Pass cost benefits directly to sellers
  
  

However, not all ONDC seller platforms deliver the same outcome.

Most platforms still charge ₹25–₹30 per shipment, even on ONDC—largely due to inefficient integrations or lack of scale.

The real benefit comes from platforms that:

• Work with large national logistics partners
  
  
• Aggregate volumes intelligently
  
  
• Optimize shipping zones and SLAs
  
  

This is where logistics cost truly drops.

Best Reliable Logistics Through ONDC

Low cost alone is not enough.
For sellers, reliability matters more than discounts.

Reliable ONDC logistics means:

• Fewer RTOs
  
  
• Accurate pickup and delivery timelines
  
  
• Real-time shipment tracking
  
  
• Smooth returns handling
  
  

Platforms that treat logistics as a core infrastructure—not an add-on—deliver significantly better seller experience and customer trust.

Low Commission ONDC Seller Platforms: The Real Difference Maker

Commission is where most sellers bleed margins.

Across the ONDC ecosystem:

• Most seller platforms charge ~6% commission
  
  
• This includes platform fees, tech fees, or hidden processing charges
  
  

In contrast, Costbo operates at a fundamentally different cost structure:

• Only 3–4% commission overall
  
  
• Just 1.5% commission on mobile devices
  
  

This difference alone can improve seller profitability by 30–50%, especially for:

• Electronics sellers
  
  
• D2C brands
  
  
• High-volume, low-margin categories
  
  

ONDC was built to reduce seller dependency—Costbo makes that promise real.

Zero Marketing Charge ONDC Seller Platform: An Underrated Advantage

Traditional marketplaces don’t just charge commission—they charge sellers to reach their own customers.

ONDC enables a different model:

• Sellers own their customer relationships
  
  
• Platforms can support seller-led engagement
  
  

Costbo takes this further by offering a Zero Marketing Charge model:

• Sellers can send SMS notifications
  
  
• App notifications to customers
  
  
• Order updates and re-engagement messages
  
  
• No extra marketing or campaign fees
  
  

For sellers, this means:

• Higher repeat orders
  
  
• Lower CAC
  
  
• Better customer retention
  
  
• No dependency on paid ads
  
  

Smart Features That Power Online Sales Growth

Beyond cost savings, sellers need stability and scale.

Costbo is built as a production-grade ONDC seller platform, offering:

• 99% uptime, ensuring your store is always live
  
  
• Reliable order processing even during peak demand
  
  
• Seamless performance across buyer apps
  
  

Your online business cannot afford downtime—and Costbo is designed with that reality in mind.

Operational Features That Matter to Growing Sellers

Costbo goes beyond basics and supports real-world seller complexity:

Store & Catalog Management

• Multi-branch / multi-store setup
  
  
• Unified catalog management
  
  
• Master cataloging for multi-branch models
  
  
• Bulk catalog upload and processing
  
  
• Catalog & inventory integrations
  
  

Order & Fulfillment

• Order booking & payment links
  
  
• End-to-end order management & execution
  
  
• Choice of logistics integrations
  
  
• Real-time shipment tracking
  
  

Finance & Post-Order Operations

• Automated payment settlement & reconciliation
  
  
• Returns management
  
  
• Issues & grievance management
  
  

These features are essential for sellers who want to scale on ONDC without operational chaos.

Final Thoughts: ONDC Is the Opportunity—Platform Choice Is the Strategy

ONDC opens the door to:

• Lower logistics cost
  
  
• Reduced commissions
  
  
• Marketplace independence
  
  
• National-scale reach
  
  

But the seller platform you choose determines whether these benefits are theoretical or real.

With:

• The lowest commission structure
  
  
• Industry-leading logistics pricing
  
  
• Zero marketing charges
  
  
• Enterprise-grade reliability
  
  

Costbo stands out as one of the most seller-friendly ONDC platforms in India today.

If your goal is to grow profitably on ONDC—not just participate—the platform choice matters.

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Frequently Asked Questions (FAQs)

1. How does ONDC help sellers reduce logistics costs?

ONDC allows seller platforms to integrate multiple logistics partners instead of locking sellers into a single courier. Platforms that aggregate volume and partner with large logistics players can negotiate significantly lower per-order shipping costs, which are passed on to sellers.

2. What is the average commission charged by ONDC seller platforms?

Most ONDC seller platforms charge around 6% commission. In comparison, Costbo charges:

• 3–4% commission overall
  
  
• Only 1.5% commission on mobile devices
  
  

This directly improves seller margins, especially for high-volume categories.

3. Why is Costbo considered a low-cost ONDC seller platform?

Costbo offers:

• One of the lowest commission structures in the ONDC ecosystem
  
  
• Lower logistics rates (₹16–₹18) compared to ₹25–₹30 charged by most platforms
  
  
• Zero marketing charges, helping sellers retain customers without extra spend
  
  

4. What does “Zero Marketing Charge” mean on Costbo?

Zero marketing charge means sellers can:

• Send SMS updates to customers
  
  
• Push notifications for orders and offers
  
  
• Communicate with customers without paying extra platform marketing fees
  
  

This helps sellers drive repeat orders and customer retention without paid ads.

5. Is Costbo suitable for multi-branch or multi-store sellers?

Yes. Costbo supports:

• Multi-branch and multi-store setups
  
  
• Unified and master catalog management
  
  
• Centralized inventory and order control across locations
  
  

This makes it ideal for growing retailers, franchises, and regional brands.

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