Open Network Digital Commerce (ONDC), the e-commerce protocol developed by the government, has been in the news lately, first because of the striking low prices of food delivery via the platform and then because of the changes it made in its incentive policy to seller side apps. ONDC responded to Business Today’s queries on the latest development and said that the incentives were introduced when the platform had less than 100 transactions per day.
In a response to Business Today’s queries, ONDC said, “The stimulus was first conceived when the network was clocking less than 100 orders a day and has undergone adjustments because of the response received.”
ONDC noted that the incentive program resulted in a 100 time spike in the number of transactions. Moreover, they expect this momentum to continue without the incentives.
“The number of orders is averaging consistently over 10,000 now and prove that interoperable unbundled e-commerce is not just viable but also can continue momentum beyond the stimulus," said ONDC.
They further added, "At this stage for ONDC, the time was right to broaden the activity and drive awareness and transactions to build confidence and acceptance that an unbundled interoperable way of delivering e-commerce can work well. A stimulus such as this was designed for limited time and scale and is constantly reviewed. The latest adjustments are consistent with those principles.”
Business Today reported on Wednesday that ONDC would be shrinking the incentives made to seller-side apps after a surge in the number of transactions on the platform.
ONDC noted in its latest message to seller side apps, which was accessed by Business Today, that henceforth incentives would be capped at Rs 2,25,000 per seller-side app daily and Rs 3,750 per seller each day.
The circular read: “Subsidised Delivery Cost for Buyers. The following modification is suggested to the program:
Existing Clause-
Upto INR 75 discount to be provided for on-network and off-network logistics for buyers on every eligible order.
New Clause-
Upto INR 75 discount to be provided for on-network and off-network logistics for buyers on every eligible order with the following additional conditions: Maximum incentive of INR 2,25,000 per Seller NP per day
• Maximum incentive of INR 3,750 per seller per day
The subsidised delivery incentive will not cover Inventory Seller NPs (NP-ISN).”
The platform was in the news this week because prices of food delivery via ONDC were relatively cheaper as compared to Swiggy, Zomato. This was because relatively lower commission on the platform clubbed the latest incentive scheme launched by the platform.
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Also Read: Prices set to rise on ONDC as platform reduces incentives to seller-side apps