Microsoft joins ONDC to launch shopping app for Indian Customers

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Microsoft, a technology business with headquarters in the US, has joined India’s ambitious open e-commerce program open network for digital commerce (ONDC) platform as the country’s first significant multinational enterprise.

In five Indian cities—Delhi, Bengaluru, Coimbatore, Bhopal, and Shillong—the idea was first tested in a trial phase. In June, it went online in Lucknow, the sixth city.

The internet giant intends to use its access to the ONDC platform to provide social e-commerce or a group buying experience in the Indian market. Microsoft said that it will release a shopping app for Indian users as well as an app for their social network.

Microsoft can quickly execute its innovative concepts, such as social commerce, by utilizing the power of our open network users, according to T Koshy, managing director of ONDC.

Why Microsoft Joined With ONDC?

“Joining forces with Microsoft is a tribute to our credibility to promote an open e-commerce environment with countless options,” he continued. “As we lay the basis of a fair playing field for every participant in the sector.”

According to analysts, the most recent development gives the business access to mid-market clients as well as micro, small, and medium-sized businesses. Sanchit Vir Gogia, CEO of Greyhound Research, was reported in the Economic Times as stating, “This fits into Microsoft’s goal and plan hugely.”

Microsoft is entering the e-commerce market, he said, not as a retailer but as a tech stack supplier, empowering people who drive e-commerce.

By joining the ONDC network, Microsoft would be able to reach out to more people who require digitalization, provide its goods and services at a much lower price point, and develop analytics based on the information it will get through its app.

According to a Microsoft representative, the network “is a win-win for both customers and sellers since it would enable them to interact without dependent on any e-commerce system.”

According to Gogia, ONDC is still in its infancy and none of the businesses that are currently active on the platform are tech stack providers like Microsoft.

The government’s ambitious initiative, which is built on the ideas of decentralization, transparency, and increased consumer utility, intends to achieve for retail what UPI achieved for payments.

What Will Be The Microsoft’s Indian Shopping App?

Microsoft wants to bring social e-commerce to the Indian market through ONDC. For any product, Microsoft is trying to start social e-commerce in India, which is when people buy things together online. They’re also launching a shopping app accessible over the ONDC network that will help people find the best prices for things.

The Indian government-backed Open Network for Digital Commerce (ONDC), a network designed to provide all e-commerce businesses an equal playing field, has welcomed Microsoft as the first major IT company to join.

The Redmond-based business is going to offer social e-commerce to the Indian market through ONDC. Additionally, it will release a shopping app in India that would be accessible via the ONDC network and enable customers to find the best deal provided by merchants and sellers.

Recent Survey of e-commerce in India 

India’s e-commerce sector has experienced extraordinary expansion, particularly after the covid-19 epidemic prompted firms and consumers to conduct their transactions online. According to research released in August by the Indian Brand Equity Foundation, the country’s e-commerce market is expected to increase at a CAGR of 19.24% to $111.40 billion by 2025 from $46.20 billion in 2020. (IBEF).

This means that the Indian e-commerce sector is growing very quickly and is expected to be worth over $100 billion by 2025. This growth is largely due to the pandemic, which has forced many businesses and customers to transact online instead of in person.

Given its UPI-like network for digital commerce, ONDC is regarded by many as a game-changer. Following the announcement, a Microsoft representative said, “It is a win-win for both customers and sellers since it would enable them to interact without being dependent on any e-commerce system.”

Microsoft is joining the government’s Online Discount Council to “disrupt” Amazon and Flipkart’s market domination

Koshy, managing director, and chief executive of ONDC, emphasized that by using the power of ONDC’s open network users, Microsoft can more quickly put its innovative concepts, including social commerce, into practice. This means that Microsoft can use the network that ONDC has created to test out new ideas and see how they work in the real world. This is important because it can help Microsoft to improve its products and make them more successful.

Koshy continued, “Partnering with Microsoft is a tribute to our reputation to promote an open e-commerce environment with a variety of opportunities. In other words, Koshy said that Microsoft is a good partner because it promotes an open e-commerce environment.

Smaller retailers and companies may now sell online thanks to the assistance of major e-commerce operators. In May, Amazon said that in the previous nine years, it has digitalized more than 40 lakh MSMEs and generated more than 11.6 lakh direct and indirect employment.

Regulators in many nations are worried about the impact of corporations like Amazon’s dominating position on smaller sellers or competing platforms. For instance, Amazon is under investigation in the UK for providing its retail firm and sellers who use its services an unfair advantage at the expense of independent retailers.

What location is the pilot being run from?

Five cities—Delhi, Bengaluru, Coimbatore, Bhopal, and Shillong—are participating in the experiment. Later, it will be introduced in 100 cities over six months.

Open Network for Digital Commerce (ONDC) – what is it?

Aiming to promote open networks for all facets of the exchange of goods and services across digital or electronic networks, the ONDC is a project.

It will be built utilizing open-sourced techniques and independent of any particular platform, open network protocols.

What is the ONDC’s purpose?

Through a shift from the present platform-centric approach to an open-network one, ONDC seeks to fundamentally alter the structure of the e-commerce business.

Which department’s project is ONDC?

The Department for Promotion of Industry and Internal Trade (DPIIT), which is a division of the Ministry of Commerce and Industry, is responsible for ONDC.

What sectors of the economy are covered by ONDC?

Any network-enabled application will be able to find and engage in local commerce across categories, including mobility, groceries, food order, and delivery, hotel booking, and travel, among others.

ONDC will be effective for both goods and services.

Why is ONDC necessary?

Over 50% of the nation’s e-commerce sector is currently controlled by only two major businesses (Amazon and Flipkart). This results in monopolies and causes problems including restricted market access, special treatment for particular vendors, and a push on supplier margins. ONDC is being introduced to stop such problems.

Can buyers and sellers utilize various applications?

Regardless of the various applications they use, buyers and sellers will be able to connect and do business online via the ONDC platform. As a result, both buyers and sellers might utilize a different platform. They may still do business while using various programs.

How is a level playing field ensured by ONDC?

The ground rules, network participation regulations, obligations, and dispute resolution will all be implemented by ONDC.

It will feature a collection of world-class protocols in crucial areas like price discovery, vendor matching, and cataloging, presumably in open source, to regulate online trading.

The ONDC platform: Will it succeed?

The government’s ability to create a seamless platform that is user-friendly and capable of providing a better purchasing experience than the present market leaders, such as Amazon and Flipkart, will determine the success of ONDC. The government should also make sure that disputes are settled quickly.

What size is the e-commerce market in India?

In India, there are already more than 4,000 small and large e-commerce businesses, 500 logistics service providers, and more than 20,000 organizations, including travel and hospitality businesses that offer services through e-commerce. By 2026, it is anticipated that the Indian e-commerce market would reach USD 200 billion.

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