Amazon to integrate its logistics and SmartCommerce offerings on ONDC

This will be Amazon's first collaboration with ONDC; firm says it will continue to explore scope for stronger integration between the two in the future

E-commerce giant Amazon on Friday said that it will integrate its logistics network – from pickup to delivery – and SmartCommerce services with the Open Network for Digital Commerce (ONDC), a non-profit company set up by the Department for Promotion of Industry and Internal Trade (DPIIT) of the Government of India.

This will be Amazon’s initial collaboration with ONDC and the company says it will continue to explore other opportunities for stronger integration between the two in the future.

SmartCommerce is an AWS-powered suite of SaaS products that enables MSMEs in India to build and scale their business across digital mediums and will have enablers for onboarding to the ONDC network.

“Amazon’s vision and commitment for India is closely aligned with ONDC’s objectives of digitally enabling small businesses, and providing convenience and choice to customers across the country,” said Manish Tiwary, Country Manager, India Consumer Business, Amazon India.

Through the integration, sellers on the ONDC platform will be able to access Amazon’s logistics and SmartCommerce offerings. However, Amazon is yet to integrate its buyer and seller platforms to the Network.

“Amazon is also looking to integrate its seller and buyer platforms onto ONDC but since the Network does not offer a plug and play solution, the company is trying to find ways to make it happen,” said a source close to the company. “The ONDC offers a wider choice of offerings to customers and Amazon wants to be present on the platform.”

Amazon has joined the likes of Snapdeal and Meesho, becoming the latest e-commerce firm to hop on the ONDC bandwagon. Flipkart Group-owned logistics provider, eKart, is also a part of ONDC.

The e-commerce giant has over 1.1 million sellers on its platform, with more than 50 per cent from tier-2 and smaller cities. The firm, which delivers across 100 per cent serviceable pincodes, plans to digitise 10 million small businesses by 2025.

ONDC is currently being beta tested in 15 cities. The platform was first piloted in Lucknow, Delhi, Bhopal, Coimbatore and Shillong.

“We are happy that Amazon has a definite roadmap to becoming a part of the ONDC network and is taking its first step in coming in as the logistics partner in the ONDC network which is a globally pioneering idea established with a view to democratise digital commerce in India. We also hope that the buyer and seller platforms are onboarded as early as possible,” said T Koshy, MD and CEO of ONDC.

The Network has onboarded more than 18,000 merchants across product categories from over 150 cities and towns in India, its CEO T Koshy revealed. It is targeting 5,000 transactions a day by the end of March from 200 currently.

Some of the companies currently operating on ONDC include Dehlivery, Shiprocket, Meesho, Dunzo, Paytm and PhonePe.