Blinkit delivers groceries in 10 minutes. Zepto promises the same. Swiggy Instamart is available in hundreds of cities. And your regular customers are starting to order online instead of walking into your store.
It’s a real challenge today for kirana shop owners and supermarket operators across India. The quick-commerce boom has changed how urban and even semi-urban customers buy groceries and daily essentials.
But here’s a fair question: Can your kirana store or supermarket compete in this digital-first retail environment?
The honest answer is – it depends. But there is a government-backed initiative that is giving independent retailers a fighting chance online. It’s called ONDC India, and if you haven’t heard of it yet, this guide will help you understand exactly what it is, how it works, and whether it makes sense for your business.
What is ONDC India?
Think of it like the UPI of digital commerce. Just like UPI allows you to send money from a PhonePe account to a Google Pay account, ONDC allows a customer on one app to discover and buy from a seller registered on a completely different app – all on the same network.
What ONDC is NOT!
- Before going further, it’s important to clarify what ONDC is not:
- ONDC is not a shopping app like Amazon or Flipkart
- ONDC is not a government marketplace you log in to
- ONDC is not a delivery service managed by the government
- ONDC is not exclusive to large businesses
ONDC is a protocol – a set of shared rules that connects buyers and sellers across different apps and platforms. Your store joins through an approved Seller Network Participant (SNP), not through a government portal.
Why Was ONDC Created?
India’s digital commerce has been dominated by a handful of large platforms. Sellers on these platforms often face:
- High commission rates (sometimes 15-30%)
- Limited control over pricing and visibility
- Algorithm-based discovery that favours large sellers
- Strict return policies and dispute processes
ONDC was designed to break this dependency.
Traditional Marketplace vs. ONDC
| Feature | Traditional Marketplace | ONDC |
|---|---|---|
|
Who controls discovery? |
The platform’s algorithm |
Open – any buyer app can show your products |
|
Commission fees |
High (15-30% typically) |
Lower, varies by network participant |
|
Seller lock-in |
Yes – your store exists on that platform only |
No – one registration reaches multiple buyer apps |
|
Who owns customer data? |
The platform |
More control stays with the seller |
|
Entry barriers |
Moderate to high |
Designed to be more accessible |
|
Small seller visibility |
Limited – large sellers often dominate |
Built to level it |
How ONDC Works for a Kirana Shop
Here’s the full workflow in simple steps:
- Step 1 – Seller Registration: Sign up through an approved ONDC Seller Network Participant (SNP) – such as Paytm, Mystore, eSamudaay, or other registered partners. This is your entry point into the ONDC network.
- Step 2 – Product Listing: Your products, along with pricing, descriptions, and stock availability, are listed on the network through your SNP’s interface or integrated billing software for retail shop management.
- Step 3 – Order Discovery: Customers using ONDC-enabled buyer apps can search for and discover your products. They don’t need to be on the same app you’re on.
- Step 4 – Order Confirmation: When a customer places an order, you receive a notification through your seller app or integrated system. You confirm availability and begin processing.
- Step 5 – Delivery: You can use your own delivery staff, a third-party logistics provider registered on the ONDC network, or, in some areas, India Post’s delivery services.
ONDC Seller Registration Process
Eligibility
- Any Indian individual, proprietor, partnership, or company
- Must have a valid business
- GST registration is required for most sellers
Documents Typically Required for ONDC Seller Registration
| Document | Details |
|---|---|
|
GST Certificate |
Valid GSTIN number |
|
PAN Card |
Of the business or proprietor |
|
Bank Account Details |
Active current or savings account |
|
Business Address Proof |
Utility bill, rental agreement, or ownership document |
|
Product/Category Details |
The categories you intend to sell |
|
FSSAI License |
Required if selling packaged food products |
ONDC Seller Registration Partners
You do not register with ONDC directly. You register through an approved Seller Network Participant (SNP). Some known SNPs include:
- Paytm for Business
- Mystore
- eSamudaay
- Pincode (by PhonePe)
- Several state-level and sector-specific onboarding partners
Note: Always verify the current list of approved SNPs at the official ONDC website (ondc.org) as the ecosystem is evolving.
Benefits of ONDC for Kirana and Supermarket Owners
More Online Visibility
When you join ONDC, your products become discoverable across multiple buyer apps simultaneously. A customer using any ONDC-connected app can find your store – without you needing a separate presence on each platform.
Wider Customer Reach
A small grocery store in Pune or a supermarket in Coimbatore can now receive orders from customers in their locality who prefer online shopping but want to support local businesses. ONDC is designed to enable hyperlocal commerce.
Reduced Marketplace Dependency
If you’re currently selling on a large e-commerce platform, you know how much commission you’re paying. ONDC is designed with lower and more transparent fee structures through SNPs -reducing the cut taken from each order.
Better Business Control
On traditional marketplaces, you have limited say in how your products are displayed or priced. On ONDC, you retain more control over your catalog, pricing, and customer interaction.
Potential Cost Benefits
While ONDC isn’t free, the structure is generally designed to be more affordable than traditional marketplace commissions – especially for small and medium retailers.
The ONDC food delivery ecosystem includes:
- Grocery and daily essentials -The category most relevant to kirana shops and supermarkets
- Fresh produce and perishables – Being handled through specialized seller participants
- Ready-to-eat and restaurant food – Restaurants and cloud kitchens can also join
For grocery retailers, the hyperlocal delivery model is the most practical entry point. You fulfil orders for customers within a defined delivery radius – like how quick-commerce works, but with you retaining more margin and control.
ONDC’s food delivery opportunity is particularly relevant for:
- Supermarkets and grocery chains with existing delivery staff
- Kirana shops near residential areas with loyal customer bases
- Stores that already have WhatsApp ordering in place and want a structured digital channel
This is significant for:
- Rural retailers looking to reach customers beyond their town
- Sellers in tier-2 and tier-3 cities where private courier density is lower
- Categories like packaged groceries, FMCG products, and non-perishables that can tolerate standard delivery timelines
India Post’s ONDC integration means that a general store in a small town in Rajasthan or a grocery supplier in rural Maharashtra now has a government-backed logistics option to carry out online orders.
While India Post may not be suitable for fresh grocery or same-day delivery, it is a meaningful addition for retailers selling packaged products to a wider geographic market.
Challenges Retailers Should Know Before Joining ONDC
Joining ONDC is not a plug-and-play shortcut to online sales. Here’s what to realistically expect:
1. Inventory Management Becomes Critical
When you go online, your physical inventory must match your digital listing. If a product shows as available on ONDC but you’re out of stock, you’ll face order cancellations and negative reviews. Real-time inventory tracking is essential.
2. Product Catalogue Management
Setting up and maintaining a digital catalogue – with accurate product names, images, descriptions, weights, and prices, takes time. For a store with 500+ SKUs, this is a significant initial effort.
3. Delivery Operations
You need a reliable delivery model. Some stores use their own delivery boys; others depend on third-party logistics. Either way, you need a system. ONDC doesn’t automatically provide last-mile delivery.
4. Customer Expectations
Online customers expect order confirmation quickly, accurate ETAs, and prompt customer support. Managing this alongside your physical store operations requires planning.
5. Competition
Other retailers in your area may also be on ONDC. Your pricing, product range, and delivery speed will determine whether customers choose you. Simply being on the network isn’t enough.
Why Billing Software Becomes Important for ONDC Success
| Operational Need | Without Billing Software | With Billing Software |
|---|---|---|
|
Inventory sync |
Manual, high risk of errors |
Automatic – real-time or near-real-time |
|
GST invoicing |
Manual calculation, prone to errors |
Auto-generated, GST-compliant bills |
|
Order processing |
Handled separately per channel |
Unified view across offline and online |
|
Customer records |
Scattered or not maintained |
Centralized, accessible |
|
Omnichannel selling |
Difficult to manage |
Streamlined under one system |
Modern billing software for retail shops, especially those designed for the Indian market, can integrate with ONDC seller platforms to ensure your catalogue stays current, your stock levels are accurate, and your invoicing is always compliant.
Retailers who invest in the right billing and inventory software before or immediately after joining ONDC tend to manage the transition more smoothly than those who attempt to run everything on paper or in spreadsheets.
Is ONDC Right for Your Retail Business?
| Business Type | Should Join ONDC? | Why |
|---|---|---|
|
Small Kirana Shop (under 200 SKUs) |
Yes, with preparation |
Low catalogue complexity; serves local demand; can start small with a limited product range |
|
Small Kirana Shop (under 200 SKUs) |
Yes |
Good balance of scale and manageability; can benefit from hyperlocal delivery orders |
|
Supermarket (500+ SKUs) |
Yes – prioritize it |
High catalogue depth is an advantage; operational readiness is critical |
|
Grocery / FMCG Distribution Chain |
Strongly yes |
Can reach multiple buyer apps without separate platform listings |
|
Specialty Retail Store (non-grocery) |
Evaluate case by case |
Depends on category demand on ONDC buyer apps |
Future of ONDC in India
Key trends shaping the future of ONDC:
- Government push for digital inclusion – ONDC is a policy priority with continued funding and regulatory backing
- Growing buyer app ecosystem – As more consumer apps integrate ONDC, the buyer base available to your store will grow automatically
- Hyperlocal commerce expansion – Tier-2 and tier-3 cities are the next frontier; ONDC’s model is well-suited for local retail
- Integration with financial services – ONDC plans to eventually integrate credit and insurance for retailers
- Omnichannel retail as the standard -The line between physical and digital retail is blurring rapidly
For kirana store owners and supermarkets, the message is clear: digital commerce is not going away. The question is which path into digital commerce fits your business. ONDC is one of the most accessible and retailer-friendly options available in India right now.
Conclusion
ONDC is a genuine opportunity for Indian retailers – from the smallest kirana shop to mid-size supermarkets – to participate in digital commerce without surrendering margins or customer relationships to large platforms.
But it’s important to be realistic. ONDC is not a guaranteed growth engine. Simply registering on the network will not automatically bring you customers. What it gives you is access – access to a growing digital buyer base, a more level playing field, and the infrastructure to compete online on your own terms.
To make the most of that access, you need:
- Accurate, up-to-date digital product catalogue
- Reliable delivery capability
- Good billing and inventory software to manage both offline and online sales
- Willingness to respond promptly to online orders and customer queries
If your store is operations-ready – or it’s in the path towards it – ONDC is worth exploring seriously. Start with a small product range, get comfortable with the process, and scale as you gain confidence.
The digital customer is already there. The question is whether your store is ready to serve them?
Frequently Asked Questions About ONDC India for Retailers
1. What is ONDC India?
ONDC stands for Open Network for Digital Commerce. It is a government-backed initiative by DPIIT under the Ministry of Commerce that creates an open, interoperable network for digital commerce in India. It allows buyers and sellers on different apps to transact with each other – like how UPI works across different banking and payment apps.
2. How can a kirana shop join ONDC?
A kirana shop can join ONDC by registering with an approved Seller Network Participant (SNP) such as Paytm for Business, Mystore, eSamudaay, or Pincode by PhonePe. You do not register directly with ONDC. The SNP handles your onboarding, catalogue setup, and integration with the network.
3. What documents are required for ONDC seller registration?
Typically required documents include: GST certificate (GSTIN), PAN card (business or proprietor), bank account details, business address proof, and FSSAI license if selling packaged food products. Requirements may vary slightly across different Seller Network Participants.
4. Does ONDC support grocery delivery?
Yes. Grocery and daily essentials are one of the primary categories supported on ONDC. Kirana shops and supermarkets can list grocery products and serve local delivery orders through the network, making ONDC directly relevant to grocery retailers looking for an alternative to quick-commerce platforms.
5. Is GST mandatory for ONDC sellers?
Yes, GST registration is generally required for ONDC seller registration, especially for sellers above the GST turnover threshold. Having a valid GSTIN is strongly recommended before attempting to register as an ONDC seller through any Seller Network Participant.
6. Can supermarkets benefit from ONDC?
Yes. Supermarkets are well-positioned to benefit from ONDC due to their wider product range, existing operational infrastructure, and ability to serve both immediate and scheduled online orders. With proper billing software and delivery operations, a supermarket can use ONDC to serve digital customers without the high commissions of traditional marketplaces.
7. Which billing software is useful for ONDC retailers?
Billing software designed for Indian retail, with features like real-time inventory management, GST-compliant invoicing, multi-channel order management, and integration support, is most useful for ONDC retailers. The key requirement is that the software keeps your physical store inventory in sync with your ONDC digital catalogue to prevent stock discrepancies and order cancellations.
8. Is ONDC available in small towns and rural areas?
ONDC is designed for nationwide coverage, and its integration with India Post for logistics specifically addresses last-mile delivery in smaller towns and rural areas. However, buyer app adoption in these areas is still growing, so actual order volume in tier-3 and rural areas may be lower initially.
