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AMAZON JOINS ONDC FOR ITS LOGISTICS AND E-COMMERCE OFFERINGS

"Put the customer first, Invent, be patient and wait for the word of mouth to do its magic."


On 24th February 2023: Amazon in Bangalore announced its intention to integrate its logistics network (from pickup to delivery) and SmartCommerce services with the Open Network for Digital Commerce (ONDC), a private, not-for-profit company set up by the Department for Promotion of Industry and Internal Trade of Government of India.

The company in a statement said that SmartCommerce is an AWS-powered suite of SaaS products that enables MSMEs in India to build and scale their business through digital media, and will have enablers for onboarding into the ONDC network.

This will mark the U.S. multinational's initial collaboration with ONDC as they continue to explore other potential opportunities for stronger integration between the two companies in the future.


Amazon has consistently leveraged technology and innovation for Indian customers and sellers, digitizing over 4 million small businesses and kirana stores in India by providing access to cutting-edge technology for online sales, and deriving great support to Indian Trade Initiatives like the 'Make in India' by providing craftsmen and artisans with a better base to trade.

This announcement will provide greater technological support to the seller community and further empower small businesses. Consumers will also benefit from greater choice.

The integration would mark a significant step towards ONDC's vision of democratizing e-commerce across India while creating more employment opportunities for our growing economy too.


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 being a catalyst for India’s digitization efforts throughout the economy.”


Further, T Koshy, MD & CEO, of ONDC commented “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 to democratise digital commerce in India, and we also hope that the buyer and seller platforms are onboarded as early as possible”.


DO YOU KNOW?

  • Amazon is to invest US$ 1 billion to help digitize SMBs in India, install Digital Haats in collaboration with MSMEs and maximise their business efficiency through their specialized power cloud technology Amazon Web Services (AWS)

  • Amazon aims to contribute to the growth of the ‘Make in India’ initiative and use its digital footprints to create US$10 billion in Indian exports by 2025.

  • Amazon plans to create one million jobs in India by 2025.





BY-

Mohak Bansal


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