ONDC explained for small retailers: what it is, how it works and whether it’s worth joining
A plain-language guide to the Open Network for Digital Commerce for kiranas and small shops: how the network connects sellers to many buyer apps, what it costs, what to prepare and honest expectations for orders.
If you run a small shop, someone has probably told you about ONDC by now. Maybe a distributor, a bank, a fellow shopkeeper or a news report. “It’s like UPI for online shopping.” “You can sell on Paytm and other apps.” “The government is pushing it.” All of these are partly true, and none of them really explains what it is or whether it’s worth your time.
This guide explains ONDC in plain language for kirana owners and other small retailers: what it is, how it works, what it costs, how to get started and what to realistically expect.
What ONDC is, in one paragraph
ONDC stands for the Open Network for Digital Commerce. It is an initiative of the Department for Promotion of Industry and Internal Trade (DPIIT), launched in April 2022. It isn’t a shopping app or a marketplace. It’s a set of shared rules and technology that lets different shopping apps, seller apps and delivery services talk to each other. A shop that joins through one seller app can be found by customers on many different buyer apps that are part of the network.
The UPI comparison
The easiest way to understand ONDC is to compare it with UPI. Before UPI, if you used one wallet, you could usually only pay people on the same wallet. UPI created a common network, so any UPI app can pay any other. You don’t need the same app as your customer.
Most online shopping still works like the old wallets: a seller on one platform can only be found by that platform’s customers. ONDC tries to do for shopping what UPI did for payments: one network where a seller on one app can be discovered by buyers on many apps.
How it works: the three main players
| Role | What it does | Who it’s for |
|---|---|---|
| Buyer app | The app customers use to search and order. Several popular apps act as ONDC buyer apps. | Shoppers |
| Seller app | The app or platform sellers use to list products, receive orders and get paid. Sellers join ONDC through one of these. | Shops and brands |
| Logistics provider | Delivery services that can pick up and deliver orders placed on the network. | Sellers who don’t deliver themselves |
- A customer searchesOn a buyer app that’s part of ONDC, a customer nearby searches for “atta 5 kg”.
- The network finds sellersMatching sellers from many seller apps show up in results, including your shop if you’re listed.
- The customer ordersThey place the order and pay on their buyer app.
- You receive itThe order appears in your seller app. You accept it and pack it.
- Delivery happensYou deliver it yourself, or a logistics partner on the network picks it up.
- You get paidMoney is settled to your bank account through your seller app, after any fees.
How big is it?
ONDC has grown steadily since its launch, though it is still small compared with the largest e-commerce platforms. According to the government, more than 1.16 lakh retail sellers from over 630 cities were live on the network by December 2025. Food delivery, groceries and mobility have been among the more active categories.
The government has also linked ONDC with support for small businesses. Under the MSME Trade Enablement and Marketing (TEAM) initiative, small enterprises can get help with digital skills, cataloguing and onboarding, with a target that half of the businesses helped are led by women.
Why it might be worth it for a small shop
Possible benefits
- Be visible to online customers in your area without building your own app or website
- Join once through a seller app and appear on several buyer apps
- Not locked into one platform’s rules
- Commissions set by seller apps, often lower than large marketplaces
- A way to compete with quick commerce for nearby orders
- Support schemes for onboarding and cataloguing
Honest challenges
- Order volumes can be low or uneven, especially at first
- Your catalogue needs clear photos, names and prices
- Stock must be accurate, or orders get cancelled
- Packing and delivery take staff time
- Returns and complaints need a process
- Fees and terms vary between seller apps; read them carefully
Getting started: a step-by-step plan
1. Decide if you’re ready
Before joining, ask yourself honestly: Can you keep stock records accurate enough that online customers don’t order items you don’t have? Can someone in the shop check and accept orders quickly, several times a day? Can you pack orders properly? If not yet, start by fixing these. Our guide to stock control can help.
2. Choose a seller app
You join ONDC through a seller-side app or platform, sometimes called a seller network participant. Different seller apps offer different features, fees and support. Compare a few: How easy is it to list products? What do they charge per order? How fast do they settle payments? Do they help with delivery? Can you speak to someone in your language when there’s a problem? Ask other shopkeepers in your area which one they use.
3. Keep documents ready
Requirements vary by seller app and product category, but you will usually be asked for some of these: PAN, a bank account for settlements, GST registration if you have one or if your category requires it, an FSSAI licence or registration for food products, and shop address details.
4. Build a good catalogue
Your catalogue is your online shop window. Customers can’t touch your products, so the listing must do the work.
- Clear names: brand, product, size, variant. “Aashirvaad Atta 5 kg”, not “Atta”.
- Good photos: real photos of the actual product, on a plain background, in good light.
- Correct prices: at or below MRP, and the same as in your shop unless you have a clear reason.
- Accurate availability: mark items out of stock immediately.
- Start small: list your 50–100 best-selling items first, not your entire shop.
If you already use a WhatsApp Business catalogue, you’ve done much of this work. Our Hindi guide किराना दुकान को डिजिटल कैसे बनाएं covers WhatsApp catalogues and ONDC together.
5. Set up your order routine
- Check orders regularlyTurn on notifications and assign one person to watch for orders during shop hours.
- Accept quicklySlow acceptance or frequent cancellations can hurt your visibility and ratings.
- Pack carefullyCheck every item against the order. Seal the bag. Include the bill.
- Hand over or deliver on timeHave the order ready when the rider arrives, or deliver within your promised time.
- Handle issuesRespond to complaints and returns promptly and politely, through the seller app.
6. Tell your customers
Let your regular customers know they can find your shop on ONDC-connected apps. Put a small sign at the counter. Many of your first online orders may come from people who already know you.
What to realistically expect
Be patient. Many small sellers find that orders start slowly. Visibility depends on factors like your distance from the customer, your prices, your ratings and how quickly you fulfil orders. Treat the first few months as a trial: track how many orders you get, what they’re worth, and how much time they take. Then decide whether to put in more effort.
ONDC works best as one part of a broader plan: a good physical shop, WhatsApp ordering for regulars, digital payments and, where it makes sense, presence on the open network. For more on how stores combine online and offline, read omnichannel retail for store teams.
ONDC and quick commerce
ONDC is sometimes described as a way for small shops to compete with quick-commerce apps. That’s partly true: it lets nearby shops appear when customers search for products online. But speed still matters, and customers who want delivery in ten minutes will compare. Your advantages remain your relationships, your local range and your flexibility. We look at this in more depth in quick commerce and the neighbourhood store.
Common questions
Is ONDC free to join?
ONDC itself doesn’t charge sellers to be on the network in the way a marketplace does, but seller apps and logistics providers charge their own fees. Check each one’s pricing before signing up.
Do I need a GST number?
It depends on your category, your turnover and your seller app’s requirements. Ask the seller app what’s needed for the products you want to list.
Can I deliver orders myself?
Often yes, especially for nearby customers. Many small shops already deliver informally; ONDC can bring them orders they then deliver themselves. Otherwise, network logistics providers can handle delivery for a fee.
Will it replace my walk-in customers?
No. For most small shops, online orders are an addition, not a replacement. Walk-in customers and regulars remain the heart of the business.
ONDC won’t transform a small shop overnight. But for retailers willing to keep accurate stock, list products properly and fulfil orders reliably, it’s a practical, low-commitment way to be found online, on terms that aren’t set by a single platform.
