The Amazon empire is in danger due to India’s initiative to “democratize” virtual trade

With an open network that welcomes buyers, sellers and distributors without third party interests, India seeks to end the exclusive power held by some companies in the e-commerce sector such as Amazon, instead of the traditional view of the internet being managed by an intermediary. .

In the eyes of its advertisers India has the lowest penetration of e-commerce, with an estimated 90 million people being regular users, which is not fair to the world’s second most populous country with a population of over 1,350 million. Residents.

Those in charge of the Open Network for Digital Commerce (ONDC) program say the only way to increase this number is to do something different than what big companies are doing, which they say will democratize the industry by supporting the move to virtualization. Business of small companies, which provide the same visibility as large businesses.

E-commerce in India is expected to reach $ 74.5 billion by the end of this year and $ 350,000 by 2030, according to estimates by the India Equity Foundation under the Ministry of Commerce. Is expected to rise to millions of dollars.

Digital feudalism
Today’s companies are “feudal with the motivation to show the buyer what they want, not what the buyer wants”. Koshy, Managing Director of the ONDC Project, launched its pilot phase in five Indian cities in the middle of the year. , April Efe. Said.

ONDC, on the other hand, is indirectly controlled by the Government of India and is a non-profit organization that “does not have to be loyal to anyone, so it helps you to make intelligent choices and make quick choices without trying to influence yourself.” He insisted.

Although the initiative takes its first steps, the goal is to learn from any mistakes made in a kind of beta phase
It is set to gradually expand its action radar until it reaches a hundred Indian cities in August.

The main difference between this network and the e-commerce giants like Amazon or Flipkart is that ONDC does not have its own interface, thus escaping “web-centrism” as Koshi calls it, so find what you want to access. Product on any site that makes it.

In addition, when consumers search the ONDC for one of the participants’ application or website, not only the products of the business they are told about, but also the products of others who are part of it are displayed.

Without a pre-installed order depending on the filters that the consumer chooses, the services of a large company will appear with the services provided by the small business, which offers the same opportunities for selection.

“Previously, the mediator was a source of power because with all the information he could tell the seller ‘I can raise you if you give me a little extra money.’ That is the fundamental change,” Koshy warned.

A twist on the tables they intend to put an end to the opacity that characterizes e-commerce giants, and according to Rahul Honda, Vice President of Strategic Plans, ONDC, the number of e-commerce consumers in India will triple, to 250 million.

“The reason ONDC exists is to democratize trade,” he said. Currently, the network includes seven companies covering various sectors such as food, health or agriculture, and the idea is to offer a wide variety of products, including the sale of air or train tickets.

Amazon interested
Although it sets itself up as an alternative to Amazon or Flipkart, ONDC’s advertisers avoid referring to these sites as competitors, instead claiming that Amazon is already interested in the project.

“We are talking to them (…), which is good news for us and for them. They have access to a very large network, which adds to the integration of any important brand with us. ONDC’s credibility,” Shirish Joshi, business director of the network, explained to Efe.

However, the Government of India doubts whether this interest from e-commerce really exists, and hopes that the development of this initiative, which indirectly controls 50%, will transform Amazon customers into its network in the future.

“The seller wants to get as many customers as possible. Now, if he’s on Amazon, he’s getting customers on Amazon. If he’s on ONDC, he’s getting customers from all regions,” said Anil, Efe, Additional Secretary, Ministry of Commerce, India. Explained to Agarwal.