The Indian government plans to build an Open Network for Digital Commerce to challenge Amazon and Walmart’s dominance in the Indian market. Buyers and sellers will be able to engage and transact online using the ONDC platform. The introduction of the ONDC platform follows an antitrust raid by India’s antitrust commission on Amazon’s domestic vendors and Walmart’s Flipkart. The business was accused of breaking the law.
The government hopes to create an open platform for the exchange of products and services over electronic networks with the introduction of ONDC. According to an official, the open network platform would be deployed in five cities: Delhi NCR, Bengaluru, Bhopal, Shillong, and Coimbatore. Later on, it would be spread to additional cities.
According to a Reuters story, the Modi government and its major backers have long claimed that Amazon and Flipkart’s predatory pricing benefits only a few big vendors. On the other hand, the firms have always maintained that they follow the Indian government’s laws.
The government’s ONDC platform has yet to elicit a response from Amazon and Flipkart. According to the study, India’s ONDC plan intends to onboard 30 million online dealers and 10 million online merchants. By August, the goal is to have covered at least 100 cities and towns. The government will concentrate on apps for buyers and dealers that are available in local languages. Small businesses and rural customers would be highlighted in the apps.
The government stated in a document that retailers and venture capital firms had backed the ONDC idea. State Bank of India, ICICI Bank, and Bank of Baroda have already pledged 2.55 billion rupees in total investments.
According to a Reuters investigation last year, Amazon was accused of giving a certain set of vendors on its preferential platform treatment for years and using them to circumvent Indian rules. Amazon disputed the charges.
The term “e-commerce” refers to the purchasing and selling of goods, products, and services over the internet. Electronic commerce or internet commerce are other terms for e-commerce. These services are delivered through the internet network. E-commerce also includes the exchange of money, funds, and data. Commercial to Business, Business to Customer (B2C), Customer to Customer, and Customer to Business (C2B) are the four types of business interactions (C2B).
According to the conventional definition, E-commerce is a commercial transaction that takes place over the internet. E-commerce websites include Amazon, Flipkart, Myntra, eBay, Quikr, and Olx. Global retail e-commerce might be worth $27 trillion by 2020. Let us take a closer look at the benefits and drawbacks of E-commerce and its various forms.
E-Commerce or Electronic Commerce
Electronic commerce, or even internet commerce, is referred to as e-commerce. The name is self-explanatory; it is an online marketplace for buyers and dealers. This includes the exchange of goods and services and the transfer of finances and data.
So, when you log into your Amazon account and buy a book, you’re engaging in an e-commerce transaction. You engage with the seller (Amazon) here and exchange data in the form of photographs, text, shipping addresses, and so on before making the payment.
E-commerce is currently one of the fastest expanding industries in the world economy. According to one estimate, it grows at a rate of approximately 23% every year.
And it is projected to be a $27 trillion industry by the end of this decade. Inventiva