ONDC is a network, not a marketplace
This is the thing to grasp first. ONDC - the Open Network for Digital Commerce - isn't a store like Amazon or Flipkart. It's an open network that connects buyers and sellers across many apps. You list once through a seller app, and buyers on any connected app can find you. Think of it as plumbing, not a shopfront.
Who runs ONDC
ONDC is an initiative of the Government of India's Department for Promotion of Industry and Internal Trade, or DPIIT. It was registered as a Section 8 company in December 2021. Its first order was a bunch of coriander delivered in Bengaluru on 29 April 2022. Today its site says it covers retail, logistics, mobility and financial services. For you as a seller, the point is simple. ONDC sets up the network and its rules. It is not an app itself, so it will never be the place your buyers shop.
Why it was built
ONDC exists to loosen the hold of a few big marketplaces. The idea is that no single company owns the buyers or sets all the rules. For small sellers, the promise is wider reach and lower, clearer costs than a closed marketplace. Whether it fully delivers that is still playing out, so keep expectations grounded.
How you actually sell on it
Most small sellers don't sign up to ONDC directly. Choosing a good seller app matters as much as the network itself.
Getting listed through a seller app
- Compare a few seller-side apps before you pick one.
- Join through the seller app you pick.
- Let that app put your catalogue on the network.
- Run your listing, orders, and often payments and logistics through the app.
What a seller app does for you
ONDC calls the company behind a seller app a Seller Network Participant, and its site lists four jobs for one. It connects you to the network through its app. It digitises your catalogue. It passes your payments on to you. And it trains you on good e-commerce practice, so orders are fulfilled well. That last job matters for a first-time seller in a Tier-2 town. A good seller app should help you write listings, set prices with GST and handle returns. If an app only uploads your products and then goes quiet, keep looking.
Two kinds of seller app
| Type | What ONDC says it is | Usually fits |
|---|---|---|
| Marketplace Seller Node (MSN) | An app that offers goods from many sellers and makes none of its own | Small sellers starting out |
| Inventory Seller Node (ISN) | An app run by a seller that sells only its own products | Brands with their own tech team |
Where buyers see your products
Buyers never visit ONDC itself. They shop inside buyer apps that plug into the network. ONDC's shopping guide says every buyer app on the network reaches the same sellers. For shopping, it lists six apps: Bajaj Markets, Hamaramall, Mystore, Oneindiamall, Snapdeal and Zilibuy. Buyer apps must also let a shopper put items from more than one seller in a single cart. So your listing can sit right next to a rival's in the same basket. Clear photos and a fair price matter here as much as on any marketplace.
The costs, honestly
ONDC aims to be cheaper than a big marketplace, with lower and clearer fees. But you still pay your seller app, plus logistics and payment costs. It isn't free, and the exact economics depend on the app you choose. Compare a seller app's total cost the same way you'd size up a marketplace.
Questions to ask before you sign
ONDC's list of network participants comes with a warning: ONDC does not endorse any of them. So check a seller app yourself before you hand over your catalogue. Ask what it charges per order, and whether that covers the payment gateway. Ask who books the courier and who pays for returns. Ask how long it takes to pass your money on after delivery. Ask which grievance contact buyers will see. Get the answers in writing, and compare two or three apps side by side before you choose.
How your money reaches you
On ONDC, the buyer pays inside the buyer app, and your seller app passes the money on to you. ONDC lists paying out sellers as one of a seller app's core jobs. It has also planned a Payment Assurance Program, under which buyer apps would place a refundable security deposit. Its page marks that program as not live yet. So for now, ask your seller app how and when it settles. Then match every payout against your orders each week, the same way you would check a COD remittance.
The catch for a small seller
ONDC is newer, and the experience varies by app and category. Support, returns handling, and buyer volume aren't as settled as on an established marketplace. Treat it as a promising extra channel to test, not a finished replacement for what already works for you today.
Your duties to buyers stay the same
Selling through ONDC does not change what you owe buyers. India's Consumer Protection (E-Commerce) Rules, 2020 ask a seller on a marketplace to appoint a grievance officer. That officer must acknowledge a complaint within 48 hours and resolve it within one month. The rules also ask you to share your legal name, address and customer care contacts, plus your GSTIN and PAN where they apply. Keep these ready before you onboard, and check that your seller app shows buyers what it should.
Keep prices and stock in step
Once you sell on ONDC, you have one more place where stock can run out. If a buyer orders an item you already sold on Instagram, you have to cancel. Buyer apps show seller ratings, so cancellations cost you. Update stock in one place each morning, or pick a seller app that syncs it for you. Keep your price the same across channels unless your costs truly differ. A buyer who finds your kurti cheaper on another app will notice, and that doubt spreads to everything you sell.
Is it worth trying?
For a small Indian seller, ONDC is worth a low-risk experiment, especially for everyday goods and local demand. List through a seller app, start small, and measure real orders against real costs. If it brings buyers cheaply, lean in. If not, you've lost very little.
Feed a business that's yours
ONDC and marketplaces help buyers discover you. Your own store is where you turn them into repeat customers you own. The Storemate gives you that storefront - UPI, COD, and GST invoicing built in - so new channels like ONDC feed a business that's yours, not someone else's platform.