CONSUMER AWARENESS AND ADOPTION OF OPEN NETWORK FOR DIGITAL COMMERCE (ONDC)

Abstract

The rapid expansion of e-commerce in India has brought significant changes to the retail sector, with major platforms like Amazon and Flipkart dominating the market. However, this platform-centric model has created barriers for small and medium businesses, restricting their participation due to high listing fees, commission rates, and limited access to consumers. In response, the Government of India launched the Open Network for Digital Commerce (ONDC), a decentralized and open-source framework that aims to democratize e-commerce. ONDC allows buyers and sellers to interact across platforms, creating a level playing field for businesses of all sizes.
This project explores the awareness, perceptions, and adoption potential of ONDC among consumers in Coimbatore, a prominent commercial hub in South India. The study seeks to assess the readiness of consumers to transition from traditional e-commerce platforms to an open network. It also identifies the key barriers and motivations influencing consumer behavior, such as awareness levels, trust, ease of use, and the perceived benefits of using ONDC.
The research employs a mixed-method approach, combining quantitative surveys and qualitative discussions. Statistical tools such as correlation and regression analysis were used to analyze relationships between demographic factors and awareness levels. The study also examines the role of consumer attitudes toward decentralized commerce models, contrasting them with the trust and convenience associated with established platforms.
Findings indicate that awareness of ONDC remains low among respondents, particularly amongolder consumers and those in rural areas. Younger, tech-savvy individuals and frequent online shoppers are more likely to recognize the benefits of ONDC. Barriers such as limited knowledge, concerns about security, and lack of user-friendly interfaces were highlighted as key challenges. On the other hand, the study reveals significant interest in ONDC's promise of transparency, lower costs, and support for local businesses, suggesting a strong potential for adoption if these issues are addressed.
This study contributes to the growing body of research on decentralized commerce and consumer behavior, offering valuable perspectives for the successful implementation of ONDC in India. It underscores the need for inclusive digital transformation strategies that prioritize both consumer and seller engagement. As ONDC evolves, its potential to disrupt the current e-commerce ecosystem and foster equitable growth across India's diverse markets is significant, making it a key driver for the nation's digital economy.