India’s e-commerce market is expected to cross $200 billion by 2026, growing at a CAGR of ~18–20%. For years, platforms like Amazon and Flipkart have dominated this space, controlling demand, discovery, and customer access.

But things are changing.

The Open Network for Digital Commerce (ONDC) — launched by the Government of India — is reshaping how online selling works:

• 350+ million cumulative transactions processed by late 2025
• 5–6 lakh daily orders already being handled
• Target of 50–60 lakh daily orders by 2026
• 7.6 lakh+ sellers and service providers onboarded
• Active presence in 800+ cities, especially Tier-2 and Tier-3 India

At the same time, Amazon India continues to be a giant:

• Over 1 million sellers on the platform
• Access to 100M+ Prime users in India
• Logistics coverage across 100% serviceable pin codes
• Dominant in categories like electronics, fashion, and FMCG

So the big question is:

 Should you sell on ONDC or Amazon? Or both?

Let’s break it down in a practical, seller-first way.

ONDC vs Amazon: Core Difference Explained

Before comparing features, it’s important to understand the fundamental difference.

Amazon = Marketplace Model

Amazon is a closed ecosystem:

• You list products on Amazon
• Customers discover you only within Amazon
• Amazon controls visibility, ranking, and customer data

ONDC = Open Network Model

ONDC is not a marketplace:

• You connect via a seller app
• Your products are visible across multiple buyer apps
• No single platform controls demand

👉 Think of it like this:
Amazon = Mall
ONDC = Internet for commerce

1. Reach & Customer Access

Amazon

• Massive built-in customer base
• High traffic and instant visibility
• Strong trust factor (Prime, reviews, delivery)

ONDC

• No single customer pool
• Reach comes from multiple buyer apps (Magicpin, Paytm, etc.)
• Growing rapidly, especially in Bharat markets

👉 Verdict:
Amazon wins in instant reach, but ONDC offers distributed discovery across platforms

2. Control Over Business

Amazon

• Limited control over:
  
  • Pricing wars
  • Listing visibility (algorithm-driven)
  • Customer relationship
• Risk of:
  
  • Account suspension
  • Buy Box dependency

ONDC

• Full control over:
  
  • Pricing
  • Inventory
  • Customer experience
• No dependency on a single platform

👉 Verdict:
ONDC clearly wins on seller control and independence

3. Commission & Cost Structure

Amazon

Typical costs:

• Referral fees: 5%–25% (category dependent)
• Fulfillment (FBA) fees
• Advertising costs (often mandatory for visibility)

👉 Effective cost can go up to 25–40% of product price

ONDC

• Lower commission structure
• Network fees are significantly lower (often <10%)
• No forced ad spend for visibility

👉 Verdict:
ONDC is more cost-efficient, especially for MSMEs and D2C brands

4. Discovery & Competition

Amazon

• Highly competitive marketplace
• Dominated by:
  
  • Large sellers
  • Private labels
  • Sponsored listings

👉 Organic visibility is difficult without ads

ONDC

• Still evolving
• Lower competition (as of 2026)
• Fairer discovery due to open network

👉 Verdict:
ONDC offers a level playing field, while Amazon is pay-to-win

5. Logistics & Fulfillment

Amazon

• Best-in-class logistics (FBA)
• Fast delivery (Prime, same-day, next-day)
• Strong reverse logistics

ONDC

• Logistics handled via partners (Shiprocket, etc.)
• Flexibility:
  
  • Seller-managed
  • Third-party logistics
• Still improving in consistency

👉 Verdict:
Amazon wins in logistics reliability, ONDC offers flexibility

6. Scalability & Long-Term Growth

Amazon

• Easy to start
• Hard to scale profitably (due to fees + competition)

ONDC

• Slightly complex to start
• Better for long-term scalability
• One integration → multiple buyer apps

👉 Verdict:
ONDC is better for long-term brand building and scale

7. Data Ownership & Branding

Amazon

• Amazon owns customer data
• Limited branding opportunities

ONDC

• Sellers retain more control
• Better scope for:
  
  • Branding
  • Customer relationships

👉 Verdict:
ONDC is better for building your own brand

Quick Comparison Table

So, Which Is Better for Sellers?

👉 The real answer is: It depends on your goal

Choose Amazon if:

• You want quick sales
• You’re okay with high competition
• You rely on platform-driven traffic

Choose ONDC if:

• You want long-term growth
• You want control over your business
• You want to reduce dependency on marketplaces

Final Conclusion

ONDC is not here to replace Amazon overnight — but it is changing the rules of the game.

Amazon still dominates in terms of:

• Traffic
• Logistics
• Immediate sales

But ONDC is building something much bigger:

• An open, interoperable commerce ecosystem
• Where sellers are not locked into one platform
• And where costs, control, and scalability improve over time

👉 For smart sellers in 2026, the strategy is not ONDC vs Amazon
👉 It’s ONDC + Amazon

Use Amazon for cash flow, and ONDC for long-term scale and independence

Frequently Asked Questions (FAQs)

1. What is ONDC platform?

ONDC (Open Network for Digital Commerce) is a Government of India–backed initiative that creates an open network for buying and selling online. Unlike Amazon or Flipkart, ONDC is not a marketplace. It connects buyers and sellers through multiple apps, allowing businesses to sell across platforms instead of being restricted to just one.

2. How much does ONDC charge for seller registration?

ONDC itself does not directly charge sellers for registration. However, sellers typically onboard through a seller app (like Costbo, etc.), which may have:

• Setup or onboarding fees
• Subscription charges
• Transaction/network fees

Compared to marketplaces, overall costs on ONDC are generally lower and more transparent.

3. How to join ONDC as a seller?

Joining ONDC is a straightforward process:

1. Choose an ONDC Seller App (like Costbo, etc.)
2. Complete KYC and business verification
3. Set up your store (catalog, pricing, service areas)
4. Integrate logistics and payment systems
5. Go live and start receiving orders from multiple buyer apps

Most platforms also offer assisted onboarding, so technical expertise is not mandatory.

4. Is ONDC owned by the Government?

ONDC is a Government-backed initiative under the Department for Promotion of Industry and Internal Trade (DPIIT).
However, it operates as a not-for-profit company, with participation from both public and private stakeholders.

5. Who is the CEO of ONDC?

As of recent updates, T. Koshy is the Chief Executive Officer of ONDC. He plays a key role in building and scaling the open commerce network across India.

6. Which is the best ONDC seller platform?

In 2026, Costbo is considered one of the best ONDC seller platforms, especially for serious sellers. Here’s why:

• End-to-end seller management (catalog, orders, payments, logistics)
• Single integration → multiple buyer apps (Magicpin, DigiHaat, etc.)
• Fully compliant with latest ONDC protocols
• Strong analytics and automation tools
• Availabe on mobile apps
• Manage multi warehouse
• Inbuild Marketing features
• Lowest logistics cost
• Suitable for entriprise as well as scaling  brands

👉 If you’re looking for long-term growth, control, and scalability, Costbo stands out as a strong choice.

7. Is ONDC better than Amazon for new sellers?

ONDC can be better for long-term growth due to lower costs and less competition. However, Amazon is easier for quick sales because of its large customer base.

8. Can I sell on both ONDC and Amazon?

Yes. Many sellers use Amazon for immediate revenue and ONDC for building a scalable, independent business.

9. Does ONDC charge commission like Amazon?

Yes, but significantly lower. ONDC network fees are generally much lower compared to Amazon’s referral and fulfillment fees.

10. Why are ONDC orders still lower than Amazon?

ONDC is still growing. While it is scaling rapidly, it hasn’t yet reached Amazon’s maturity and user base.

11. Do I need ads to get orders on ONDC?

Not necessarily. ONDC focuses on open discovery, so sellers are not heavily dependent on paid ads like on Amazon.

12. Which platform is better for D2C brands?

ONDC is better for D2C brands because it offers more control over pricing, branding, and customer relationships.

13. Is ONDC suitable for small businesses?

Yes. ONDC is designed to empower MSMEs, local sellers, and small businesses by reducing dependency on large marketplaces.

References

• https://ondc.org
• https://dpiit.gov.in
• Invest India Reports on E-commerce Growth
• RedSeer & Bain India E-commerce Market Reports
• Amazon Seller Central India Documentation

‍