The government’s Open Network for Digital Commerce (ONDC) is implementing a new incentive scheme for buyer and seller apps, which places a limit of INR 100 per order on discounts. Effective from June 1 until June 28, the scheme aims to control the falling order volumes in the digital commerce space.
To avail of the INR 100 discount on ONDC, users must place a minimum order of INR 200 for food and beverage purchases, and INR 300 for other products, including shipping charges. The discount is applicable as long as it doesn’t exceed 50% of the total order value, including shipping charges.
Moreover, the ONDC has imposed restrictions on the number of discounted transactions. Buyers can use the discount for a maximum of five transactions per month, while buyer apps can offer up to 20 discounted offers per brand per day. If the number of discounted orders crosses 1,000 for a buyer app, the app can only claim incentives for up to 50% of the overall delivered orders in a week.
The move comes as ONDC is facing a decline in order volumes, with an average of around 9,000 orders per day, down 64% from its peak of 25,000 orders achieved earlier this month.
While ONDC has been positioned as a serious competitor to Zomato and Swiggy in India’s food delivery market, there have been significant price differences between products listed on these platforms and ONDC. However, with the introduction of the discount cap, the price gap is expected to narrow.
Additionally, ONDC has introduced an incentive regime to encourage seller app onboarding. Seller apps will receive incentives for onboarding merchants across various categories, including F&B, grocery, and health and wellness. Incentives range from INR 1,000 to INR 5,000 per seller, depending on the category and the number of eligible SKUs.
The new incentive scheme and discount cap aim to strike a balance between promoting the growth of the ONDC network and maintaining the competitiveness of the digital commerce market in India.
