Capitalizing on the festive enthusiasm, the government-supported Open Network for Digital Commerce (ONDC) recorded an unprecedented 12 lakh transactions from November 6 to November 13, as reported by ONDC data.
Earlier this year, ONDC highlighted its ambition to achieve 1 Lakh daily transactions. Judging by the festive season statistics, it seems the network may have successfully reached this milestone. The ongoing Cricket World Cup also appears to have played a role in fueling the growth of transactions for the network.
“The increasing trend of festive shopping moving online has pushed customers to look for the best deals across various platforms and apps. With ONDC Network, consumers now have one more alternative that goes beyond the traditional ecommerce apps. Our record transactions indicate a changing consumer behaviour wherein shoppers are eager to explore options to secure the best deals and discounts,” said T Koshy, MD & CEO, ONDC.
Orders spanning various categories, including F&B, grocery, electronics, fashion, home & kitchen, mobility, and health & wellness, were placed in 600 Indian cities during the week.
On Sunday, October 8, during the World Cup match between India and Australia, ONDC reached a historic milestone, registering a peak of 53,000 retail orders in a single day.
It’s worth noting that the open network experienced a remarkable monthly transaction surge, increasing by 500 times, from a modest 12,281 transactions in January to over 608,307 in September, based on the latest monthly transaction data provided by ONDC.
The surge in transactions observed during the festive season can be attributed to the incentives provided by the network to buyer-side applications such as Paytm, Pincode (owned by PhonePe), Magicpin, Ola, and others.
The network also adjusted the incentives and bonuses for sellers while expanding the spectrum of discounts offered to buyers.
As reported earlier, ONDC has been extending substantial bonuses, with a weekly cap of up to INR 35 Lakh, to buyer-side platforms.
Moreover, ONDC has raised the weekly cap on consumer discounts from 2 to 5. The tier-based incentive system is designed to support buyer applications in onboarding sellers based on their locations. This initiative aims to expand the market’s reach beyond urban areas, traditionally known for attracting significant online retail order volumes.
According to ONDC’s incentive framework for seller-side applications, the network is offering incentives of 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. These incentives are applicable if the sellers provide more than 5,000 stock-keeping units (SKUs) in the grocery category.
As per the findings of the consulting firm Redseer, the gross merchandise value (GMV) for the country’s ecommerce sector was projected to experience a year-on-year growth of 18%-20%, reaching INR 90,000 Cr during this year’s festive season.
Last week, Amazon India reported that during the company’s ‘The Great Indian Festival,’ which kicked off on October 8, over 38,000 sellers experienced their highest-ever single-day sales.
The resurgence in retail consumption, achieving record monthly digital transactions, and a reduction in inflation collectively have given a positive boost to the ecommerce sector in India following the impact of the Covid-19 pandemic.
According to its report, Redseer projected that approximately 140 million shoppers were anticipated to engage in purchases during the festive season sale this year.
During this year’s festive season sale, Flipkart, owned by Walmart and traditionally holding the largest share in such sales, recorded a 15-20% rise in its gross merchandise value (GMV), reaching INR 33,000 to INR 36,000 Cr.
A notable trend observed in online festive season sales in India is the substantial volume of orders originating from areas beyond metros and Tier I cities. Consequently, the strategic onboarding of sellers nationwide has become imperative to tap into markets in remote regions of the country.
Amazon reported that their marketplace facilitated almost 8,000 sellers in achieving their highest-ever single-day sales during the Great Indian Festival. In contrast, Flipkart announced a 27% surge in its seller count, surpassing 1.4 million sellers.
Meesho has recently expanded its platform to include non-GST registered sellers, while Amazon India has introduced its multi-channel fulfillment (MCF) service for direct-to-consumer (D2C) brands and retailers. This service aids in managing customer orders originating from various channels.
Meanwhile, ONDC is offering B2B seller apps incentives of up to INR 1,000 for acquiring new buyers. Sellers can avail themselves of this amount for the first order placed by a new or unique buyer, with a minimum order value of INR 5,000, inclusive of shipping. Sellers have the opportunity to claim this incentive for up to 50 new buyers each month.