September 25, 2022

Great Indian Mutiny

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The Amazon empire is in danger due to India’s initiative

India Seeks to put an end to the exclusive power held by a few companies in the field of e-commerce such as AmazonInstead of the traditional view of the website being managed by an intermediary, through an open network that welcomes buyers, sellers and distributors without third party interests.

There is less penetration in e-commerce in the eyes of its advertisers IndiaThey estimate that there are about 90 million regular users, which does not do justice to the world’s second most populous country of more than 1,350 million.

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.

In e-commerce India It was already expected to reach $ 74.5 billion by the end of this year. IndiaDepends on the Ministry of Commerce and is expected to increase to $ 350,000 million by 2030.

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 Indian government and is a non-profit, “he said, adding that” there is no loyalty to anyone, so ask intelligent questions and make a quick choice without trying to hurt yourself. ” Insisted.

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Although the initiative is taking its first steps, the lesson to be learned from the mistakes that can be made in a kind of beta phase is to gradually expand its radar of action until it reaches a hundred Indian cities in August.

The main difference of this network is as far as the giants of such e-commerce are concerned Amazon Nor does Flipkart have its own interface to ONDC, thus escaping what Koshi calls “web-center”, so to access it, look for the desired product on any site that creates 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 ONDC Strategic Plans, the number of e-commerce consumers will triple to 250 million. India.

“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 will offer a wide variety of products, including the sale of air or train tickets.

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Amazon interest

Although setting itself up as an alternative to Amazon Or Flipkart, ONDC’s advertisers say instead, referring to these sites as competitive. Amazon In view of the possible adhesion, there is already interest in the project.

“We are talking to them (…), which is good news for us and for them. Because they have access to a very large network, it also adds to us the inclusion of any important brand. The credibility of ONDC,” Shirish Joshi, business director of the network, explained to Efe.

However, the Government of India doubts whether this interest in the e-commerce giant is real, and hopes that the development of this initiative, which will indirectly control 50%, will initiate customer exchange. Amazon To your network in the future.

“The seller wants to get as many customers as he can. Now, if he’s inside Amazon Receive only customers within Amazon. If you are in ONDC, you will get customers from all regions, ”Anil Agarwal, Additional Secretary, Ministry of Commerce, India, told Efe.

In charge of the project, Agarwal stressed the non-profit nature of ONDC, in which he pointed out that after an initial investment of $ 1.3 million, it had already raised enough money to sustain itself for the next few years. .

This allows them to charge a fee of “the smallest of every transaction that takes place in the network”, but it will not be implemented until the trial phase is advanced and negotiated with the network members.

“We are taking special measures to build trust in the organization. (…) Without confidence, no one will come here,” Agarwal concluded.