wordpress blog stats
Connect with us

Hi, what are you looking for?

Views: Why Amazon joining ONDC is not the win it sounds like or needs right now

Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).

Amazon, on February 24, announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC), India's effort to unbundle and democratise e-commerce. While this sounds like—and has been reported in media as—a significant win for ONDC (especially given that ONDC aims to break the dominance of Amazon), it is not really, for two main reasons: 1. Amazon's e-commerce arm (the shopping platform) is not joining ONDC: Currently, Amazon and Flipkart dominate India's e-commerce space. As a consumer, these are probably the first two platforms you check for something because they have a vast base of products and sellers. And sellers flock to these platforms because buyers are there. In other words, Amazon and Flipkart enjoy tremendously from network effects. ONDC, on the other hand, lacks this at the moment. The network is currently focused on grocery delivery and, to a lesser extent, direct-to-consumer brands. It is not yet a go-to platform for anything and everything. Onboarding Amazon and Flipkart would be a game-changer for ONDC because the two platforms will bring their enormous seller base with them. Consumers will then have a strong incentive to shop on ONDC because they will get the products that Amazon and Flipkart have in addition to products from other sellers. But, unfortunately, Amazon has not committed to bringing its e-commerce platform to ONDC. Without that, ONDC will always be lacking, unless it manages to create better network effects than the US giant, which is a Herculean task. 2. ONDC suffers…

Please subscribe/login to read the full story.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

Amazon announced that it will integrate its logistics network and SmartCommerce services with the Open Network for Digital Commerce (ONDC).

News

India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?

News

After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples

News

In the case of the ‘deemed consent' provision in the draft data protection law, brevity comes at the cost of clarity and user protection

News

The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ