Challenges in Democratizing E-commerce in India through Open Network for Digital Commerce: A Seller Network Node Perspective

India has made remarkable strides in its digital transformation journey creating an impressive global presence with its futuristic digital innovations, supporting technologies and scalable architecture. India’s flagship program ‘Digital India’ along with ‘India stack’ have been instrumental in accelerating the development of Digital Public Infrastructure (DPI) in India. Even though digital commerce has a huge potential to fuel economic growth, current penetration stands at only seven percent of overall market, restricted by multiple barriers. In 2021, India launched its ambitious plan to democratize e-commerce with Open Network for Digital Commerce (ONDC). This initiative was envisioned to create an inclusive ecosystem for e-commerce that facilitates even the smallest start-ups and merchants to reap benefits of e-commerce. ONDC seeks to dismantle digital monopolies and create a level playing field with greater inclusivity. Startups can leverage ONDC to reach a broader customer base, reduce operational costs, and enhance their technological capabilities. ONDC can act as a promising platform to accelerate the growth of startups and drive a more inclusive digital economy, by fostering innovation and democratizing access to digital markets. ONDC which was incorporated in 2021 as a Section 8 company launched its pilot phase in 2022. Although there has been an increased presence, its growth lags behind major e-commerce platforms. In order to establish itself in the market place, ONDC need to tackle numerous challenges. This study attempts to identify and rank the challenges faced by seller network nodes in the adoption of ONDC using fuzzy AHP methodology. Key challenges identified include technical and operational issues, seller participant awareness and acquisition, overall cost of adoption, competition from established giants, as well as scalability issues. In order to unlock its full potential and expand market share across India, the government must collaborate with ONDC leadership to address these critical roadblocks promptly. The success of this unique, tech-based open e-commerce network could serve as an exemplary model for other nations and start-ups facing similar challenges.