Three points you will get to know in this article:
- The Open Network for Digital Commerce (ONDC) saw a surge in transactions during the festive season, reportedly surpassing its target of 1 Lakh daily transactions.
- This growth was influenced by incentives offered to buyers, an expanded range of discounts, and notable events like the Cricket World Cup.
- The trend indicates a shift in consumer behavior towards online shopping, with shoppers exploring alternatives to traditional e-commerce platforms.
Taking advantage of the joyful holiday spirit, the government-supported Open Network for Digital Commerce (ONDC) proudly logged an impressive 1.2 million transactions from November 6 to November 13, as revealed by exclusive ONDC data accessed by Inc42.
Earlier this year, ONDC emphasized its aspiration for a daily transaction count of 100,000. Judging by the festive season figures, it appears that the network has successfully reached and possibly surpassed this ambitious goal. The ongoing Cricket World Cup also appears to have played a role in boosting the network’s transactional growth.
“As the shift towards online festive shopping gains momentum, customers are actively seeking the most attractive deals across different platforms and apps. Through the ONDC Network, consumers now enjoy an additional choice that extends beyond conventional e-commerce apps. According to T. Koshy, the MD & CEO of ONDC, our record-breaking transactions reflect a shift in consumer behavior. Shoppers are increasingly inclined to explore diverse options in their quest for the best deals and discounts, marking a notable change in their preferences. In an email statement to Inc42, Mr. Koshy emphasized the evolving landscape of consumer habits in the realm of online shopping.”
During the past week, customer orders flooded in from 600 cities across India, spanning diverse categories like F&B, groceries, electronics, fashion, home & kitchen, mobility, and health & wellness. On a thrilling Sunday (October 8), coinciding with India’s World Cup clash against Australia, ONDC achieved a remarkable milestone with a peak of 53,000 retail orders processed in a single day.
It’s worth noting that the open network experienced an extraordinary surge in monthly transactions, skyrocketing by 500 times from a modest 12,281 transactions in January to an impressive 608,307 in September, according to the latest monthly transaction data shared by ONDC.
Capitalizing on the festive spirit, the government-backed Open Network for Digital Commerce (ONDC) witnessed a surge in transactions, thanks to enticing incentives extended to buyer-side applications like Paytm, Pincode (owned by PhonePe), Magicpin, and Ola, among others.
To sweeten the deal further, the network revamped its incentives and bonuses for sellers, coupled with an expanded array of discounts for buyers. Earlier reports highlighted ONDC’s generous offering of substantial bonuses, reaching up to INR 35 Lakh per week for buyer-side platforms. This strategic move played a pivotal role in the impressive transaction growth observed during the festive season.
Capitalizing on the festive spirit, the government-backed Open Network for Digital Commerce (ONDC) has achieved a remarkable milestone with 12 Lakh transactions recorded between November 6 and November 13, according to exclusive data obtained by Inc42 from ONDC.
Earlier in the year, ONDC had set its sights on facilitating 1 Lakh daily transactions. Judging by the festive season figures, it appears the network has not only met but possibly exceeded this ambitious goal. The ongoing Cricket World Cup also appears to have played a role in propelling the network’s transactional growth.
Moreover, ONDC has taken a customer-centric approach by increasing the weekly limit on available discounts from 2 to 5 per week. The incentive system, structured in tiers, aims to support buyer applications in onboarding sellers based on their geographical locations. This strategic move is geared towards expanding market accessibility beyond traditional urban centers, which typically dominate online retail order volumes.
In alignment with ONDC’s seller-side incentive structure, the network offers up to INR 6,000 in metros, up to INR 7,500 in Tier II and III cities, and INR 5,000 in all other cities. However, sellers must present more than 5,000 stock-keeping units (SKUs) in the grocery category to qualify for these incentives.
E-commerce Sales Shone Brightly This Festive Season
Embracing the celebratory spirit, the consultancy Redseer anticipated a noteworthy 18%-20% year-on-year surge in the gross merchandise value (GMV) for the nation’s e-commerce realm, reaching a substantial INR 90,000 Crore throughout this year’s festive season.
In a recent announcement, Amazon India shared that more than 38,000 sellers experienced their most successful single-day sales to date during the extravaganza of ‘The Great Indian Festival,’ which kicked off on October 8. In the latest findings, Redseer projected a robust turnout of approximately 140 million eager shoppers gearing up for this year’s festive season extravaganza.
Taking the lead in festive season sales, the festive spirit embraced Walmart-owned Flipkart, witnessing a notable surge of 15-20% in its Gross Merchandise Value (GMV) within the festive sale period, soaring to an impressive INR 33,000 to INR 36,000 Crores.
Attracting A Huge Seller Base Remains Key
In the midst of India’s online festive shopping spree, a noteworthy trend is the surge in orders originating from areas beyond the bustling metros and Tier I cities. Recognizing this shift, it has become imperative to onboard sellers nationwide, strategically reaching out to untapped markets in the remote corners of our diverse country.
Amazon proudly reported that nearly 8,000 sellers experienced their all-time highest single-day sales during the Great Indian Festival. Meanwhile, Flipkart celebrated a remarkable 27% surge in its seller count, surpassing an impressive 1.4 million sellers. Breaking barriers, Meesho recently welcomed non-GST registered sellers onto its platform. Additionally, Amazon India introduced its multi-channel fulfillment (MCF) service tailored for Direct-to-Consumer (D2C) brands and retailers, facilitating seamless management of customer orders across various channels.
These developments underscore the dynamic landscape of e-commerce, with platforms adapting to inclusivity and diverse market demands.
The government-backed Open Network for Digital Commerce (ONDC) recorded a notable increase in transactions during the festive season, surpassing its target of 1 Lakh daily transactions. Incentives and an expanded range of discounts offered to buyers significantly contributed to this surge. The network’s reach extended to more than 600 cities, tapping into various verticals and benefiting from key events like the Cricket World Cup. This growth trend highlights the shifting consumer behavior toward online shopping and the exploration of alternatives beyond traditional e-commerce platforms.
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