How Small Businesses Can Join ONDC — Detailed Step-by-Step Guide

The Open Network for Digital Commerce (ONDC) is India’s Government-backed open ecommerce initiative designed to democratize digital commerce by enabling any buyer, seller, logistics partner or technology provider to transact on an open interoperable network — much like how UPI transformed payments. It was initially launched and piloted in 2022 and scaled through 2023 and beyond under government support (DPIIT, Ministry of Commerce & Industry). 

Key data points to understand ONDC’s scale so far:

• Seller base: Over 7.6 lakh sellers and service providers have registered on ONDC across India.
  
  
• Transaction volume: ONDC has processed 100+ million cumulative orders with 15.4+ million orders in Dec 2024 alone, and average daily transactions of about 4,90,000+.
  
  
• Network size: More than 600 cities & towns have been reached by ONDC sellers. 
• Monthly milestones: The network has seen 10+ million transactions per month at certain points, reflecting fast growth in merchant activity. (source: ONDC)
  
  
• Application ecosystem: Dozens of seller apps, buyer apps and logistics providers operate within the ONDC network — giving multiple routes to transact. (source: ONDC)

These figures clearly shows ONDC is scaling rapidly as a government-enabled inclusive ecommerce infrastructure, especially for small and local businesses.

How Small Businesses Can Join ONDC — Detailed Step-by-Step Guide

1️⃣ Choose a Way to Join ONDC

A small business doesn’t plug directly into ONDC. You join the network through one of the following:

A. ONDC-Enabled Seller Apps / Marketplaces (best for most small businesses)

• These apps handle technical integration, seller dashboards, catalogue uploads, and order management.
  
  
• ONDC does NOT charge sellers directly — the costs and tools depend on the chosen app/SNP.
  
  

B. POS / Inventory Software With ONDC Integration

• Best if you already use a billing/POS system and want catalogue & order sync.
  
  

C. Direct API Integration (advanced)

• For businesses with their own tech team — integrate directly via ONDC APIs. This requires registering as a Network Participant — more technical and suited to larger sellers.
  
  

Note: Most small businesses use choices A or B because they simplify onboarding and fulfilment.

2️⃣ Prepare Business & Compliance Essentials

Before onboarding, you should have:

✔ Legal business identity (proprietorship / company)
✔ PAN card (business/owner)
✔ GSTIN (if registered — highly recommended for tax & invoice)
✔ Bank account details & cancelled cheque
✔ Shop / store address + contact details
✔ Product info (names, prices, images)
✔ Delivery & return policies

These are standard across seller apps helping you complete KYC quickly.

3️⃣ Build Your Product Catalogue

Your seller app on ONDC typically needs:

📌 Product title
📌 Category / HSN code
📌 MRP & selling price
📌 Product images (clear, consistent)
📌 Inventory counts
📌 Delivery lead times

Pro Tip: A well-structured catalogue with accurate prices, units and clear images increases visibility and conversions on ONDC buyer apps.

4️⃣ Onboarding & Verification by the Seller Network Participant (SNP)

Once your documents and catalogue are ready:

1. Submit them via the seller app/SNP onboarding flow.
   
   
2. The SNP conducts KYC verification.
   
   
3. You get login access to seller dashboard / app.
   
   
4. Products are published to the ONDC network.
   
   

This SNP becomes your gateway to receive orders from all buyer apps in the ONDC ecosystem.

5️⃣ Set Up Logistics & Payments

Logistics:

• Many seller apps provide integrated logistics partners (tracking, fulfillment, returns).
  
  
• You can also use your own delivery partners if supported by the SNP.
  
  

Payments:

• ONDC works with multiple payment modes (UPI, cards, wallets).
  
  
• Settlement cycles vary by seller app — check terms upfront.
  
  

6️⃣ Go Live & Manage Orders

Once live:
✔ Accept incoming orders quickly
✔ Keep inventory accurate
✔ Ship on time & update tracking
✔ Handle returns professionally

Metrics that matter:
• On-time delivery %
• Cancellation rate
• Customer ratings
• Repeat buyer rate

Good performance improves discoverability on the ONDC network.

Typical Timelines

Realistic estimates for a small seller:

📌 Simple seller app onboarding: 1–7 business days
📌 POS / deeper system integration: 2–4 weeks
📌 API / direct NP integration: Several weeks to months (if technical)

These depend on document completeness and app support.

Tips to Succeed on ONDC

✨ Keep inventory fresh & accurate
✨ Add quality product photos
✨ Define delivery timelines clearly
✨ Respond quickly to orders
✨ Choose an SNP with good logistic partnerships

Many small sellers have reported higher price competitiveness and wider reach through ONDC compared to traditional ecommerce listings.

About Costbo.com — Your ONDC Growth Partner

Costbo.com is a main ONDC seller platform designed for SME and large entriprises with features tailored for India’s diverse ecommerce needs:

App availability: iOS & Android — manage your store on the go
Hyperlocal + Pan-India logistics: Reach local buyers quickly or ship nationwide
Multi-Warehouse / Multi-Store Model: Sync inventory across stores automatically
Best offers & discounts: Attract more buyers with competitive pricing
ONDC + Website Integration: Bring your web store and ONDC catalogue together

Costbo simplifies the entire ONDC seller experience — from onboarding to order fulfillment — and helps small businesses compete with larger marketplaces.

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Reference

1. Press Information Bureau
2. ONDC | Open Network for Digital Commerce

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