The Open Network for Digital Commerce (ONDC) has reportedly adjusted its incentive program to offer increased flexibility to buyer-side applications in delivering discounts to consumers.
Additionally, these modifications encompass a 50% reduction in subsidies for food categories and an expansion of merchant presence in 45 non-metro districts.
According to a Moneycontrol report, the notification regarding the implementation of the fifth version of the incentive scheme was distributed to network participants (NPs) on September 4, and it officially took effect starting September 5.
As part of the recent updates, ONDC has raised the weekly maximum claimable amount for buyer-side applications from INR 25 Lakh to INR 40 Lakh. Additionally, the requirement for monitoring discounts on specific orders has been eliminated.
Simultaneously, adjustments have been introduced in the discount structures for specific categories. For orders surpassing INR 200 in the food and beverage (F&B) category, the average incentive has been lowered to INR 50 per order. However, the incentive for orders exceeding INR 200 in the grocery and beauty products category remains unchanged at INR 100 per order, according to the report.
The incentive for electronics orders falling within the INR 200 to INR 1,000 range has been maintained without any alterations.
In the previous iteration of the scheme, there was a uniform incentive rate of INR 100 per order, irrespective of the product category, and no distinctions were made based on product categories.
Since its inception in 2022, ONDC has been diligently dedicated to developing open protocols encompassing all facets of digital commerce. This initiative is designed to empower both buyers and sellers to utilize any compatible application or platform of their choice for seamless transactions. The overarching objective is to dismantle the isolated ecosystems of numerous e-commerce platforms and unite them under a singular, open network.
The platform’s progress has been remarkable, with an impressive roster of participants. Among its seller-side network participants, it boasts notable names such as Magicpin, uEngage, Bitsila, EkSecond, Growth Falcons, Mystore, nStore, and eSamudaay. On the buyer side, it includes prominent players like Pyatm, Pincode, and Meesho.
ONDC has been steadily broadening its footprint across various sectors, encompassing segments such as grocery delivery, mobility, and fintech.