Amazon has announced that it will integrate its logistics network (from pickup to delivery) and SmartCommerce services with the Open Network for Digital Commerce (ONDC), a private non-profit company established by the Department for Promotion of Industry and Internal Trade of Government of India.
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. This will be Amazon’s initial collaboration with ONDC as we continue to explore other potential opportunities for stronger integration between the two in future.
Amazon has consistently leveraged technology and innovation on behalf of Indian customers and sellers, and digitized over 4 million small businesses and kirana stores in India, providing access to cutting edge technology towards online selling. Today’s announcement will provide greater technology support to the seller community and further empower small businesses. It will also benefit crores of consumers with wider choices. The integration would mark a significant step towards the ONDC’s vision of democratizing e-commerce across India.
Speaking on the occasion, Manish Tiwary, Country Manager, India Consumer Business, Amazon India, said, “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 are excited about the opportunities to mobilise Amazon’s industry-leading infrastructure and technology, including logistics, and small business digitization tools, to help the ONDC accelerate its objectives. We remain committed to be being a catalyst for India’s digitization efforts throughout the economy.”
“We are happy that 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 which is a globally pioneering idea established with a view to democratise digital commerce in India, and we also hope that the buyer and seller platforms are onboarded as early as possible,” T Koshy, MD & CEO of ONDC commented.
Amazon’s journey in India:
· Over 11 lakh sellers with more than 50% coming from tier 2 cities and below.
· Plans to digitize 1 crore small businesses by 2025.
Delivering across 100% of serviceable pin codes.