What are ONDC's commission rates compared to Amazon?

ONDC charges a network fee of approximately 1–3%. The ONDC buyer app (where the customer is) charges an additional fee of typically 2–5%. Total effective commission: 3–8% depending on category and buyer app. Amazon's referral fees range from 5–15% plus FBA fees if you use their fulfilment. ONDC's cost structure is materially lower, particularly for thin-margin MSME sellers.

What categories work best on ONDC?

ONDC's strongest categories are currently: food & beverage (restaurants, tiffin services, packaged food), grocery, pharmaceutical, and hyperlocal services (home services, beauty). Electronics and fashion are growing but Amazon/Flipkart still have significantly more buyer traffic in these categories. Check the ONDC network's category-level GMV data for the most current picture.

How does IBEAN help MSMEs with ONDC or marketplace selling?

IBEAN's advisory covers: marketplace channel strategy (ONDC vs Amazon vs Flipkart vs Meesho — which to prioritise for your category and margin structure), catalogue optimisation, pricing strategy for multi-channel selling, returns management frameworks, and working capital planning for marketplace business models where payment cycles and return reserves significantly affect cash flow.

Comparison Guide

ONDC vs Amazon and Flipkart India

For Indian MSME sellers: open network vs closed marketplace — commission rates, customer reach, category fit, and which to prioritise.

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The short answer

Amazon and Flipkart offer larger customer reach now; ONDC offers lower commissions and a government-backed MSME-friendly structure. For most categories, start on Amazon/Flipkart for reach, then add ONDC as the network matures — particularly if you sell food, grocery, pharma, or hyperlocal services where ONDC is already strong.

Side-by-side comparison

Dimension	ONDC Network	Amazon / Flipkart
Structure	Open protocol network — sellers connect via any ONDC-enabled app	Closed marketplace — Amazon.in or Flipkart.com platform
Commission rates	1–3% (network fee) + buyer app fee (typically 2–5%)	Amazon: 5–15% referral fee + FBA fees if applicable; Flipkart: similar
Logistics	Seller-managed or ONDC logistics partners; hyper-local delivery focus	FBA (Fulfilled by Amazon) — Amazon handles warehousing and delivery for a fee
Customer reach	Growing — Paytm, Meesho, PhonePe, SnapBizz apps on ONDC network	Massive — Amazon 150M+ users; Flipkart 100M+ users
Brand visibility	Better for branded sellers — discovery is less brand-suppressing than Amazon	Amazon suppresses brand; heavy competition from Amazon private label
MSME support	Designed for MSMEs; Udyam integration; government MSME priority	MSME registration gives access to some programmes; not structurally MSME-first
Category strength	Food & beverage, grocery, pharma, hyperlocal; growing in fashion, electronics	Electronics, fashion, books, consumer goods — large catalogue depth
Returns management	Varies by buyer app; less standardised	Standardised returns process; high return rates in fashion (25–40%)

Frequently asked questions

Frequently Asked Questions

Frequently asked questions

5 Questions

ONDC (Open Network for Digital Commerce) is a government-backed open protocol that allows any e-commerce buyer app (like Paytm, Meesho, PhonePe) and seller app to interoperate. Unlike Amazon or Flipkart, ONDC is not a marketplace — it is a network. Sellers list on an ONDC seller app; buyers discover them through any ONDC buyer app. This creates a more competitive, open ecosystem with lower commission rates than closed marketplaces.

For most MSMEs, the answer is both — but start with Amazon or Flipkart for immediate customer reach, and add ONDC as the network matures. ONDC is particularly strong for: food & beverage, grocery, pharma, and hyperlocal services where neighbourhood delivery is the competitive advantage. Amazon is stronger for electronics, fashion, books, and consumer goods where national reach matters more than locality.

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Planning your D2C or marketplace strategy?

IBEAN advises Indian MSMEs on channel strategy for online selling — which platforms suit your category, margin structure, and growth stage.

ONDC seller guide