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ONDC Lights Up Diwali for SMEs: A Digital Commerce Triumph

Published on 10 Nov, 2023
Author CredAble Team

The arrival of the Diwali season, with its much-awaited festive celebrations, presents a golden opportunity for small and medium enterprises (SMEs) to harness the potential of the ONDC Network and drive their sales to new highs. SMEs can leverage the comprehensive framework and standardized application programming interfaces (APIs) offered by ONDC to implement a range of strategic initiatives to amplify their reach and engage a broader consumer base during this extremely lucrative period. Since its inception in 2021, the Network has endeavored to reshape the digital commerce landscape by empowering small businesses and driving growth. Presently, e-commerce contributes just 4.3% of the retail commerce sector in India, a figure which ONDC is tirelessly working to grow. During Diwali 2023, eCommerce sales are expected to increase by more than 20%, with the growth attributed to a 40% quarter-on-quarter surge in the direct-to-consumer (D2C) segment. The festive season in 2023 is expected to boost the eCommerce sales to the tune of approximately INR 90,000 crores. Amidst the festive bonanza, ONDC has experienced a significant surge, handling 53,000 retail orders in a single day. Monthly retail purchases on ONDC have grown 500X between January and September, surpassing 600,000. The network is gearing up to achieve 200,000 transactions a day by the end of 2023, a substantial increase from the current high of 160,000 transactions.

ONDC's disruptive presence extends beyond e-commerce, with ride-hailing transactions witnessing a remarkable 4,000-fold increase. The network's strategies include expanding to tier 2 and 3 cities, offering an online educational course for merchants, and leveraging Doordarshan for nationwide education about ONDC. The government-backed initiative aims to prevent the dominance of a few large Networks and boost e-commerce penetration, reaching 900 million buyers and 1.2 million sellers.

In the ever-evolving landscape of India’s digital economy, ONDC has emerged by fostering a marketplace which caters to businesses of all sizes. The Network has made a conscious effort to improve consumers digital shopping experience using their standardised APIs to increase accessibility, make the Network more user-friendly and ensure data privacy. Since sales record a high number of sales during Diwali, SMEs can leverage ONDCs set framework to their advantage to further drive their sales and revenue. The integration facilitated through the standardised APIs

empowers SMEs to showcase their range of products and services across various eCommerce Networks, while expanding their visibility to a vast and diverse consumer audience.

By capitalizing ONDC’s Network, SMEs can collaborate with several digital commerce service providers to strategically launch targeted promotional campaigns, especially during the festive and demanding Diwali season. Offering exclusive discounts, enticing festive deals, and bundled offers specifically tailored to the needs and preferences of the Diwali shopper can effectively entice and incentivize customers to opt for making their purchases through the ONDC Network. SMEs can deploy digital marketing strategies, such as the utilization of personalised email campaigns, engaging social media advertisements and the implementation of tailored search engine optimisation techniques to drive a surge of traffic towards the ONDC Network by bolstering their sales prospects during the high-demand period.

SMEs leverage ONDCs improved data sharing and interoperability to track their customers preferences and behaviour patterns. This helps SMEs to carefully curate an effective and interactive digital shopping experience tuned to the need of their diverse customer base. By integrating ONDCs Network with highly efficient delivery service providers ensures the timely and hassle-free delivery of products and services to clients, especially during the bustling and fast-paced Diwali season. SMEs can position themselves as dependable entities to their consumers by leveraging ONDCs security protocols and data privacy mechanisms.

ONDC has emerged as a catalyst for the growth and success of a number of small and medium-sized enterprises (SMEs), particularly during the festive season. ONDC is banking on dynamic pricing, inventory management and delivery cost optimisation to reduce the cost of doing business for everyone. Analysis of data presented by SMEs indicates that the integration of open networks has resulted in a 45% in online sales especially during the festive season, as opposed to the traditional sales figures. The seamless integration of ONDC with multiple e-commerce Networks and marketplaces has allowed SMEs to expand their customer reach by an impressive 55% during the festive period. This increased visibility has enabled SMEs to connect with a larger audience, thereby fostering brand recognition and customer loyalty.

Furthermore, the open network's efficient integration with diverse payment gateways and logistics services has led to a noteworthy 40% reduction in operational costs for SMEs during festive periods. This streamlined process has not only improved the overall customer experience, as evidenced by a 30% increase in customer satisfaction ratings but has also allowed SMEs to effectively manage the influx of orders and ensure timely deliveries during the peak season.

Moreover, the open network's capacity for real-time data analysis has enabled SMEs to adapt their marketing strategies in response to shifting consumer trends, resulting in a 25% increase in targeted marketing effectiveness during festive periods. This data-driven approach has empowered SMEs to offer personalized promotional campaigns and product recommendations, thereby further boosting customer engagement and sales conversion rates.

In conclusion, ONDC's role in empowering SMEs during the festive season is undeniable. Its impact on market visibility, operational efficiency, and data-driven marketing strategies signifies a pivotal shift in the dynamics of digital commerce, ensuring a prosperous Diwali for businesses of all sizes.

In summary, the open network for digital commerce has significantly bolstered the growth and profitability of SMEs, especially during the festive season, by enhancing market visibility, optimizing operational efficiency, and facilitating data-driven marketing strategies. This transformative impact underscores the critical role of open networks in empowering SMEs to thrive in the dynamic landscape of digital commerce.

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