ONDC, Amazon’s SmartCommerce Services to Empower India’s Small Retailers

Amazon has announced a partnership with India’s Open Network for Digital Commerce (ONDC) on Friday, February 24. This teaming-up is aimed at providing small retailers and day-to-day buyers with Amazon’s SmartCommerce services. ONDC is a private non-profit company overseen by the government of India. Meanwhile, the SmartCommerce is an Amazon Web Services (AWS)-powered suite of software as a service (SaaS) product that enables MSMEs in India to build and scale their business.

This partnership marks Amazon’s first collaboration with the ONDC. The e-commerce giant will also provide its logistics service to small and medium business owners who aim to expand the sale of their products around the world.

“Amazon has a definite roadmap to being a part of the ONDC network and is taking its first step in coming in as the logistics partner in the ONDC network,” said T Koshy, MD & CEO of ONDC, in a prepared statement.

The partnership aims to make the engagement of Indian merchants with the e-commerce space smooth and seamless.

India, under its Make in India initiative, has been bullish on promoting homegrown brands around the world to compete with the likes of international labels across sectors.

Earlier this month, Narayan Rane, India’s minister of micro, small, and medium enterprises (MSMEs), announced that the ministry would work alongside Amazon to enhance production in the country and take quality goods to the people at an affordable price.

“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. We remain committed to be being a catalyst for India’s digitisation efforts throughout the economy,” said Manish Tiwary, Country Manager, India Consumer Business, Amazon India.

The e-commerce platform aims to digitise 10 million MSMEs by the year of 2025.

Back in January 2020, Amazon founder Jeff Bezos visited New Delhi to flag off the ‘Amazon Smbhav’ conclave.

At the time, Bezos had announced an investment of $1 billion (roughly Rs. 8,300 crore) focussed on providing digital onboarding for Indian merchants.