Amazon to join ONDC with network, software services integration

Retail major Amazon India will join the Open Network For Digital Commerce (ONDC) by integrating its logistics network—from pickup to delivery—and software product service, SmartCommerce.

SmartCommerce is an AWS-powered suite of SaaS products that enables MSMEs in India to build and scale their business across digital mediums and will have enablers for onboarding to the ONDC network.

"This will be Amazon’s initial collaboration with ONDC as we continue to explore other potential opportunities for stronger integration between the two in future," the company said in a statement on Friday.

Amazon's integration with ONDC marks a crucial development in strengthening the ecommerce initiative in the country. Several players including Meesho, Dunzo, Shiprocket, and Delhivery have already joined the platform.

ONDC was first launched in beta testing mode in Bengaluru in September last year, and was expected to go live in Delhi in November, followed by Mumbai. Meerut in Uttar Pradesh was the first Tier II city where ONDC became live officially. The platform's pilot launch started in April in five cities—Bengaluru, Delhi, Bhopal, Shillong, and Coimbatore—with a closed user group. It has now grown to 85 cities.

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"Amazon’s vision and commitment for India is closely aligned with ONDC’s objectives of digitally enabling small businesses, and providing convenience and choice to customers across the country," Manish Tiwary, Country Manager (India Consumer Business) at Amazon India, said.

"We are excited about the opportunities to mobilise Amazon’s industry-leading infrastructure and technology, including logistics, and small business digitization tools, to help the ONDC accelerate its objectives. We remain committed to be being a catalyst for India’s digitization efforts throughout the economy," he added.