Amazon on Friday announced that it will integrate its logistics network (from pickup to delivery) and SmartCommerce services with the government's Open Network for Digital Commerce (ONDC) platform.
This will be Amazon's initial collaboration with ONDC as the company continues to explore other potential opportunities for stronger integration between the two in the future.
"We are excited about the opportunities to mobilize 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 being a catalyst for India's digitization efforts throughout the economy," Manish Tiwary, Country Manager, India Consumer Business, Amazon India, said in a statement.
Moreover, the company said that the integration will provide greater technical support to the seller community and further empower small businesses, also it will benefit crores of consumers with wider choices.
The integration would be a significant step towards the ONDC's goal of democratizing e-commerce nationwide.
"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, said in a statement.
Amazon has consistently leveraged technology and innovation on behalf of Indian customers and sellers, and has digitized over 4 million small businesses and kirana stores in India, giving them access to cutting-edge technology for online selling, the company mentioned.
The e-commerce giant has over 11 lakh sellers with more than 50 percent coming from tier 2 cities and below in the country.
The company also plans to digitize 1 crore small businesses by 2025.
ONDC, a Ministry of Commerce initiative, will enable sellers to tap this massive market by offering an equitable and secure platform that integrates multiple sellers, buyers, and logistics players.
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