India's e-commerce landscape is changing, and the Open Network for Digital Commerce (ONDC) is one of the initiatives attracting attention in 2026. Designed to make digital commerce more accessible, ONDC aims to connect buyers and sellers across different applications rather than keeping them confined to a single marketplace. For small businesses, this could create new opportunities. However, understanding how the network works is essential before deciding whether it is the right move.
What Is ONDC, and How Does It Work?
ONDC is an initiative supported by the Department for Promotion of Industry and Internal Trade (DPIIT). Unlike a conventional e-commerce marketplace, ONDC is an open network that enables different buyer applications, seller applications and service providers to interact.
For sellers, participation generally happens through a Seller Network Participant or seller application. These participants help onboard businesses, digitise product catalogues, coordinate payments and guide sellers through e-commerce operations. Products can then become discoverable through compatible buyer applications connected to the network. Source: ONDC.
The idea is to reduce dependence on closed digital ecosystems and give businesses more ways to reach potential customers. ONDC's official website highlights opportunities for sellers to access multiple commerce destinations and receive onboarding, catalogue and logistics support.
Is ONDC a Real Opportunity for Small Sellers?
The opportunity is meaningful, particularly for local retailers, independent brands, manufacturers and small businesses that have traditionally relied on physical stores or a limited customer base.
First, ONDC can expand digital discoverability. A local business may be able to make its catalogue available through participating buyer applications without building a separate integration with every application.
Second, it creates opportunities to explore customers beyond a seller's immediate neighbourhood. This can be valuable for businesses with products that appeal to customers across different cities.
Third, the network encourages greater participation in digital commerce. The Government of India's December 2025 communication described ONDC as a way to support fairer, more inclusive digital commerce for small businesses, local traders and MSMEs.
However, joining the network does not automatically generate orders. Product pricing, catalogue quality, delivery performance, customer reviews, competition and the buyer application's discovery mechanisms all affect results. Sellers should also understand the fees charged by their chosen service providers, payment and settlement arrangements, return policies and customer-support responsibilities before onboarding.
What Should Small Sellers Actually Do in 2026?
The smartest approach is to treat ONDC as a business channel to evaluate, not a guaranteed shortcut to success.
Start by identifying products with clear customer demand and calculating the real margin after product costs, packaging, logistics, applicable platform charges, returns and marketing. Prepare accurate product descriptions, good-quality photographs and realistic delivery timelines.
Next, compare seller applications based on onboarding support, pricing, service coverage, catalogue management and fulfilment capabilities. Ask how orders, cancellations, refunds and customer complaints will be handled.
Finally, track performance. Monitor orders, conversion rates, repeat purchases and net profit rather than judging success by registrations or catalogue listings alone. If the numbers work, gradually expand your catalogue and marketing efforts.
Where factori.com Fits Into This Opportunity
ONDC and factori.com address related but different parts of the online-selling journey. ONDC provides an open network connecting participating commerce applications. Meanwhile, factori.com offers an alternative route for entrepreneurs who want to establish their own branded online store.
Through retailing.factori.com, entrepreneurs can access a catalogue of products, create a storefront with their own domain, connect payment gateways and explore an inventory-light selling model. The platform describes its offering as enabling sellers to market products without purchasing inventory upfront, with fulfilment support provided through its ecosystem.
This approach is particularly relevant to people who want to focus on brand identity, social media marketing and customer relationships instead of managing warehouse stock. Entrepreneurs can explore product niches, create content and build a direct online presence.
Importantly, factori.com should not be assumed to be an ONDC-connected seller application unless that participation is independently confirmed. The two can be evaluated as distinct approaches: ONDC for accessing an open commerce network through a participating seller application, and factori.com for building a branded storefront.
Ready to explore your own online store? Visit retailing.factori.com to learn about its online retailing model.