ONDC Postpones Network Fee Roll Out for Second Time
In a recent development, the Open Network for Digital Commerce (ONDC) has once again postponed the implementation of its network infrastructure development and services fee for seller apps. The fee, which was initially set to be rolled out on January 1, has been delayed until July 1, 2025. This is the second time that the roll-out has been postponed, with the first delay occurring in January 2025.
The fee in question is a ₹1.50 charge on seller apps for every successful transaction where the total transaction value exceeds ₹250. This fee was intended to cover the costs of developing and maintaining the ONDC network infrastructure, as well as providing services to its network participants.
However, following feedback from its network participants, ONDC has decided to delay the implementation of the fee. This decision was made in response to concerns raised by stakeholders, who requested more time to adjust their processes and prepare for the introduction of the fee.
The postponement of the fee roll-out is a significant development for the e-commerce industry in India, where the ONDC is poised to play a major role in the country’s digital commerce landscape. The ONDC is a government-backed initiative aimed at promoting digital commerce and reducing the dominance of e-commerce giants like Amazon and Flipkart.
The ONDC network is designed to allow multiple applications and services to interoperate seamlessly, providing a level playing field for all participants. The network is expected to enable small and medium-sized enterprises (SMEs) to compete more effectively with larger companies, and to promote digital payments and online transactions.
The delay in the fee roll-out is likely to provide relief to e-commerce sellers and merchants, who were concerned about the potential impact of the fee on their businesses. The fee was seen as a significant additional cost for sellers, who were already grappling with the challenges of operating in a highly competitive and rapidly changing market.
The postponement of the fee roll-out is also seen as a positive development for the ONDC, which is still in the process of developing its network infrastructure and services. The delay will give the organization more time to work with its network participants to address their concerns and ensure a smooth transition to the new fee structure.
The ONDC’s decision to delay the fee roll-out is a testament to its commitment to listening to the concerns of its stakeholders and ensuring that its initiatives are implemented in a way that benefits all participants. The organization’s willingness to adapt to changing circumstances and to prioritize the needs of its network participants is likely to be seen as a major positive by the e-commerce industry in India.
In conclusion, the postponement of the ONDC’s network fee roll-out is a significant development for the e-commerce industry in India. The delay will provide relief to e-commerce sellers and merchants, and will give the ONDC more time to work with its network participants to ensure a smooth transition to the new fee structure. The ONDC’s commitment to listening to the concerns of its stakeholders and prioritizing the needs of its network participants is likely to be a major positive for the industry, and will help to promote digital commerce and economic growth in India.
Source:
https://startupnews.fyi/2025/05/03/ondc-delays-levying-network-fee-again-on-stakeholder-feedback/
