ONDC, the Open Network for Digital Commerce, lets a small shop, restaurant or maker sell online without joining one big marketplace. You sign up with one seller app, and your products can then appear in any buyer app connected to the network. It was set up under the Department for Promotion of Industry and Internal Trade (DPIIT), part of the Ministry of Commerce and Industry.
For a small seller, the practical answer is this: you need a seller app, basic KYC documents, a product catalogue and a delivery arrangement. Commissions are set by the seller app you choose, not by a single platform, and you keep control of your prices and customer service.
What ONDC is, and what it is not
The network is a common language that lets different apps exchange orders. A customer might search on one buyer app; the order goes to a seller who listed products through a different seller app; and a third company may deliver it. None of these companies owns the customer or the seller.
That is different from a marketplace, where one company runs the storefront, the rules, the payment flow and often the delivery. On the open network, each role is played by a separate "network participant".
| Role | What it does | Who it serves |
|---|---|---|
| Buyer app | Shows products and takes the order and payment | Customers |
| Seller app | Lists your catalogue, receives orders, settles payments | Shops, restaurants, makers |
| Logistics partner | Picks up and delivers the order | Sellers and seller apps |
| Gateway and registry | Route searches and keep a list of approved participants | All participants |
When it started and who runs it
The Open Network for Digital Commerce was incorporated as a Section 8 (not-for-profit) company on 31 December 2021, with backing from DPIIT. Its pilot began on 29 April 2022 in five cities: Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore. Groceries and food delivery were the first categories, followed by fashion, home goods, mobility and logistics.
The official site, ondc.org, lists the approved buyer apps, seller apps and logistics partners. Check it before signing up with any app that claims to connect you.
How big the open network is in late 2026
Official figures come mainly from Parliament replies. In a written reply to the Lok Sabha, Minister of State for Commerce and Industry Jitin Prasada said more than 1.16 lakh retail sellers were live on the network from over 630 cities and towns as of 9 December 2025. Earlier government statements had cited larger totals that counted service providers as well as retail sellers, so the numbers are not directly comparable.
Industry coverage in August 2026 reported that cumulative transactions had passed 500 million, and a November 2026 report said a pilot called DigiDukaan had connected more than 21,000 kirana stores with over 450 brands in Hyderabad, Jaipur and Mumbai as of September 2026. These figures come from news reports rather than a government release; check the official site for current data.
- 31 Dec 2021incorporated as a not-for-profit company
- 5pilot cities in April 2022
- 1.16 lakh+retail sellers live (Lok Sabha reply, Dec 2025)
- 630+cities and towns with live sellers (Dec 2025)
How a small seller joins ONDC, step by step
The process is the same whether you run a daily-needs store, a restaurant or a home food business. You do not apply to the network directly; your seller app onboards you.
Choose a seller app
Compare approved seller apps on fees, categories, language support and settlement time.
Complete KYC
Upload PAN, bank details, address proof and licences such as GSTIN or FSSAI where required.
Build your catalogue
Add products with clear photos, prices, stock and pack sizes.
Set delivery
Choose network logistics, your own delivery staff or customer pickup.
Go live and test
Place a small test order from a buyer app to check the flow.
Track settlements
Reconcile payouts against orders every week.
Documents you will usually need
Requirements vary by seller app and by what you sell, but most ask for the items below.
- PAN of the business or proprietor
- Bank account details for settlement (cancelled cheque or statement)
- GSTIN, where your business is required to register for GST
- FSSAI registration or licence for food and grocery sellers
- Shop address proof and a working phone number
- Product photos, prices and stock levels
- Udyam registration, if you have one (useful for MSME schemes)
Costs, commissions and payments
There is no single fee. Each seller app sets its own commission or subscription, and buyer apps and logistics partners may take a share of the order value. Total charges vary widely by category and app, so compare a few apps using the same sample order.
Payments are usually collected by the buyer app and settled to you through the seller app after delivery, minus agreed fees. Many customers pay by UPI. Our explainer on UPI's new rules for shopkeepers covers the merchant fee changes NPCI has announced.
Delivery and returns on the network
Delivery is often the hardest part for a small shop. You can:
- Use a logistics partner on the network, booked through your seller app.
- Deliver nearby orders with your own staff, which suits groceries and food.
- Work with a local courier and delivery service for parcels to other cities.
Agree return and cancellation rules in advance, and make sure your catalogue states them. Complaints are handled first by the app the customer used, then by the seller app and you, under the network's grievance process.
Is it worth it for your business?
The network makes most sense if you already have stock, a reliable phone line and someone to pack orders quickly. It gives you reach across several buyer apps at once, and you set your own prices.
It is less useful if your products are bulky, fragile or highly seasonal, or if you cannot respond to orders within the time the buyer app promises. Many small sellers start with a few best-selling items before listing the whole shop.
Common mistakes to avoid
- Listing items you do not have in stock, which leads to cancellations and lower visibility.
- Using unclear photos or missing pack sizes.
- Ignoring settlement reports until money goes missing.
- Signing up with an app you have not checked against the official participant list.
If you are not yet registered as a business, start with our guide to how to register a business in India. For product photos and promotion, digital marketing agencies in your city can help.
Final word
The open network gives a small seller a way to take online orders without handing everything to one marketplace. The steps are straightforward: pick a seller app from the official list, complete KYC, publish a clean catalogue and settle delivery. Start with a few products, measure what sells, and make sure local customers can also find you by listing your business on IndiaYP.
Frequently asked questions
What is ONDC in simple words?
It is the Open Network for Digital Commerce, a government-backed set of open rules that lets different shopping apps exchange orders. A customer can order on one buyer app from a seller who listed through a different seller app. It is not a shopping app itself, and it does not own the customer or the seller relationship.
Who owns the Open Network for Digital Commerce?
It is a not-for-profit company incorporated under Section 8 of the Companies Act on 31 December 2021, with backing from DPIIT, the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry. Banks and financial institutions are among its shareholders. It sets the rules and approves participants but does not run a marketplace.
How many sellers are on the open network?
In a written reply to the Lok Sabha, the Minister of State for Commerce and Industry said more than 1.16 lakh retail sellers were live from over 630 cities and towns as of 9 December 2025. Earlier figures that included service providers were higher. Check the official site or recent PIB releases for the latest count.
How do I register as a seller?
You join through an approved seller app rather than applying to the network directly. Choose a seller app, complete its KYC with PAN, bank details and any licences such as GSTIN or FSSAI, upload your catalogue and set delivery options. Once approved, your products can appear across connected buyer apps.
Is GST mandatory to sell on the open network?
It depends on your business. GST registration rules are based on turnover, the type of goods or services and whether you supply across states, and some e-commerce rules apply. Many seller apps ask for a GSTIN, but requirements differ. Ask the seller app and check with a chartered accountant before you start selling online.
How much commission do sellers pay?
There is no single rate. Each seller app sets its own commission or subscription, and buyer apps and logistics partners may also take a share of the order value. Fees differ by category and app. Compare at least two or three apps using the same sample order before you decide, and ask for the full fee breakdown in writing.
Can a kirana store sell groceries on the network?
Yes. Groceries were among the first categories in the 2022 pilot, and many kirana stores sell through seller apps today. A November 2026 report said a pilot called DigiDukaan had connected more than 21,000 kirana stores with brands in three cities. You will need an FSSAI registration and a reliable way to deliver nearby orders.
Who delivers orders for small sellers?
You can book a logistics partner connected to the network through your seller app, deliver nearby orders with your own staff, or use a local courier for parcels. Many grocery and food sellers deliver within their neighbourhood themselves. Agree delivery times and charges in advance so that the buyer app's promised times are realistic.
Which cities is the open network available in?
The pilot started in April 2022 in Delhi NCR, Bengaluru, Bhopal, Shillong and Coimbatore. According to the government's December 2025 Lok Sabha reply, retail sellers were live from over 630 cities and towns. Availability for a particular buyer depends on whether a seller and delivery option serve their area.
Is the open network better than selling on a marketplace?
Neither is always better. The open network lets you appear on several buyer apps through one seller app and keep control of prices, but traffic varies by app and category. Marketplaces bring large audiences but set their own rules and fees. Many small sellers try both and compare orders, returns and net payouts.
Source: IndiaYP
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IndiaYP Editorial
The IndiaYP team writes practical guides and news for business owners and customers across India's states, cities and localities.
