What Are the Benefits of Selling on the ONDC Platform?

Open Network for Digital Commerce (ONDC) is India’s open e-commerce network designed to break platform monopolies and democratise digital commerce.

📊 Key ONDC Data Points (2025–26)

• 7+ lakh sellers onboarded across India
  
  
• 6+ crore cumulative orders processed on the network
  
  
• Presence across 1,200+ cities and towns
  
  
• Buyer apps include wallets, banks, super apps, and commerce apps
  
  
• Average seller-side fees: 3%–8%, significantly lower than traditional marketplaces
  
  

➡️ ONDC works like UPI for commerce — open, interoperable, and platform-neutral.

Key Benefits of Selling on ONDC

1. Lower Commission, Higher Margins

• Traditional marketplaces charge 15%–35% commission
  
  
• ONDC seller apps typically charge 3%–8%
  
  

Example (₹1,000 selling price):

• Closed marketplace payout: ₹700–₹850
  
  
• ONDC payout: ₹920–₹970
  
  

➡️ Up to 30% higher profit per order

2. One Listing, Many Buyer Apps

• Products are listed once via a seller app
  
  
• The same listing appears across multiple buyer apps simultaneously
  
  

📈 This reduces dependence on a single marketplace and increases discoverability at no extra cost.

3. No Monopoly or Lock-In Risk

• No single company controls ONDC
  
  
• Sellers own their data
  
  
• Easy to switch seller apps without losing listings or customers
  
  

🛡️ Ensures long-term business stability and independence.

4. Level Playing Field for MSMEs & Local Sellers

• No algorithm bias toward big brands
  
  
• No forced advertising spends
  
  
• Strong support for hyperlocal discovery
  
  

📍 Local sellers can compete with national brands purely on price, service, and availability.

5. Faster & Transparent Settlements

• Typical settlement cycle: T+1 or T+2
  
  
• Clear breakup of:
  
  
  
  • Commissions
    
    
  • Logistics costs
    
    
  • Seller payouts
    
    

💰 Improves cash flow and working capital efficiency.

6. Freedom to Choose Logistics Partners

• Sellers can choose logistics based on cost and serviceability
  
  
• Works well for:
  
  
  
  • Hyperlocal delivery
    
    
  • Same-day / next-day delivery
    
    
  • Regional courier partners
    
    

🚚 Results in 10–15% lower logistics costs.

7. Government-Backed Digital Infrastructure

• Supported by the Government of India & DPIIT
  
  
• Built as national digital infrastructure (similar to UPI & GSTN)
  
  

📌 Reduces regulatory and platform risk for sellers.

8. Ideal for D2C & New-Age Brands

ONDC is especially suitable for:

• D2C startups
  
  
• Sustainable & niche brands
  
  
• Regional manufacturers
  
  
• Price-sensitive categories
  
  

🎯 Lower entry cost and faster go-to-market.

9. Full Control Over Pricing & Branding

• No forced discounts
  
  
• No price parity pressure
  
  
• No competing private labels
  
  

🧠 Sellers retain complete authority over pricing and brand positioning.

10. Early-Mover Advantage

ONDC is expanding into:

• Grocery & food
  
  
• Mobility
  
  
• Services
  
  
• B2B commerce
  
  

Early sellers benefit from lower competition today and stronger positioning tomorrow.

Network Overview (Data Snapshot)

Scale

• 7+ lakh sellers across 1,000+ cities
  
  
• 6+ crore cumulative orders processed
  
  

Fees

• ONDC: 3%–8% seller-side commissions
  
  
• Closed marketplaces: 15%–35%
  
  

Interoperability

• One listing visible across 100+ buyer apps
  
  
• Platform-neutral architecture like UPI
  
  

Seller Composition

• 84% sellers are small businesses / MSMEs
  
  
• MSMEs contribute 56% of total orders
  
  
• 5,00,000+ MSMEs onboarded by early 2025
  
  

Financial Benefits (Data-Backed)

• Up to 30% higher margins per order
  
  
• 20% average revenue increase for Tier-2 & Tier-3 MSMEs
  
  
• 5–10% lower customer acquisition & servicing costs
  
  
• Near-zero network fees
  
  
• Faster settlements improve working capital by 20–30%
  
  

Market Reach & Visibility

• Multi-app exposure: list once, appear everywhere
  
  
• 3.5 lakh+ sellers active across 1,200+ cities
  
  
• Hyperlocal success stories:
  
  
  
  • Kiranas and FPOs selling nationally
    
    
  • Handloom listings grew from 20 to 900, generating 1,200+ orders
    
    
• Rural inclusion:
  
  
  
  • 76 SHGs empowering 1M+ women
    
    
  • 70% sellers are small and medium businesses
    
    
• No ad bidding wars or algorithm favoritism
  
  

Operational Control & Flexibility

• Full data ownership for sellers
  
  
• Easy switching between seller apps
  
  
• Logistics flexibility enables:
  
  
  
  • Same-day delivery
    
    
  • Hyperlocal fulfilment
    
    
• 10–15% logistics cost reduction
  
  
• Access to analytics for:
  
  
  
  • Credit & loans
    
    
  • Targeted marketing
    
    
  • Business planning
    
    

Growth Projections & Future Outlook

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In Simple Words

ONDC gives sellers:

• ✔ Better margins
  
  
• ✔ Wider reach
  
  
• ✔ Business independence
  
  
• ✔ Transparent operations
  
  
• ✔ Future-ready infrastructure
  
  

It doesn’t replace existing marketplaces overnight —
but it creates a fair, open, and sustainable alternative.

About Costbo

Costbo is a leading ONDC seller platform that helps businesses seamlessly launch and scale on the ONDC network.

Why Sellers Choose Costbo

• ONDC + Website Integration -  Seamless integration between ONDC and your own website with unified catalog, inventory, and order management.
  
  
• Hyperlocal + Pan-India Logistics - Flexible delivery setup supporting both hyperlocal fulfilment and nationwide shipping.
  
  
• Distributor Network Integrations - B uilt-in support to manage distributors, resellers, and channel partners across B2B and B2C models.
  
  
• Multi-Warehouse / Multi-Store Model - Centralised control of multiple warehouses, dark stores, or retail outlets with location-wise inventory.
  
  
• Handles 1,000s of Orders per Minute - Enterprise-grade architecture designed to handle high transaction volumes reliably.
  
  
• Android & iOS App Availability - Manage orders and operations on the go with dedicated mobile apps.

Costbo simplifies ONDC adoption for MSMEs, D2C brands, and enterprises, making open commerce easy and scalable.

Frequently Asked Questions (FAQ)

1. Is ONDC only for small sellers?
No. ONDC supports MSMEs, D2C brands, large enterprises, and B2B sellers.

2. Can I sell on ONDC along with Amazon or Flipkart?
Yes. ONDC is non-exclusive and can run alongside other marketplaces.

3. Who handles customer support on ONDC?
Support is shared between buyer apps, seller apps, and sellers with defined protocols.

4. Are payments safe on ONDC?
Yes. Payments follow regulated digital payment systems with transparent settlement flows.

5. How do I start selling on ONDC?
You need to onboard through an ONDC-certified seller app such as Costbo.

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