Why ONDC hasn’t got very far and what it must do to win in India’s e-commerce market

India’s digital public infrastructure story has been remarkable. The Unified Payments Interface (UPI) made digital payments a habit. CoWin demonstrated population-scale tech execution during a crisis.

Aadhaar, DigiLocker and Fastag showed how digital rails can drive inclusion and efficiency.Naturally, this success would inspire ambition beyond payments and identity. The Open Network for Digital Commerce (ONDC) was born from this confidence to do for e-commerce what UPI did for payments: break platform silos and create an open, interoperable network where buyers and sellers could transact freely. Big private platforms would not be the only options.Nearly four years on, ONDC has not lived up to its promise.

It remains niche, confusing to many users and largely invisible to the typical e-shopper. India’s online commerce market remains dominated by a few large integrated platforms. They control product discovery, listings, payments, logistics and data.

They are efficient and convenient, but they are also closed systems. ONDC’s proposition was to separate the network from the platform. It aimed to create a shared digital network where any buyer app could connect with any seller app.

In theory, a small kirana store could be discovered just as easily as a large brand. In practice, that shift has proven harder than anticipated.So, where did ONDC go wrong? First, the consumer experience is weak. UPI is simple: scan, pay, and you’re done.

ONDC, by contrast, feels fragmented. Search results vary. Returns, refunds and customer support are inconsistent.

This can frustrate users. E-commerce today is not just about prices, but about trust, reliably speedy deliveries and easy returns. ONDC may have underestimated high market