India's Open Network for Digital Commerce has failed to replicate UPI's success in transforming e-commerce. Nearly four years after launch, ONDC controls less than 0.1% of the country's $100 billion online retail market, remaining largely invisible to typical shoppers. The platform struggles with fragmented consumer experience, inconsistent search results, and unreliable returns processes that frustrate users accustomed to seamless transactions. Small sellers, intended as primary beneficiaries, face complex onboarding and lack digital capabilities to manage multi-platform operations. Without sufficient customer demand, merchants have minimal incentive to participate. Meanwhile, dominant integrated platforms maintain control over product discovery, payments, logistics and data.
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