ONDC revamps incentive structure shedding discounts
By MYBRANDBOOK
The government-backed, Open Network For Digital Commerce (ONDC) has announced a revamped incentive programme, ending the first phase of its discounting schemes effective May 31. The platform's Incentive Program 2.0 will come into effect on June 1, the network will offer two kinds of incentives—one for seller network participants for onboarding quality sellers, and the other for boosting transactions to be rolled out through buyer network participants.
Confirming the broader plan for the second phase of the network’s incentive programme, ONDC Chief Business Officer Shireesh Joshi said, “The primary purpose (of the incentives) was for people to understand that unbundled commerce works. It was never about the price. At no point do we expect the floodgates to open for incentives–not now, not ever. We will maintain some stimulus, while at the same time, we don’t want to make it the reason for business to happen.”
ONDC’s decision to moderate its incentives programme follows shortly after Commerce and Industry Minister Piyush Goyal made it clear that the government was not in favour of incentivising orders placed on the network to compete with other consumer internet apps.
Buyer-side apps such as Paytm and Phonepe-backed Pincode will now be able to tweak the incentives based on time of the day, day of the week, and other levers. Also, ONDC has capped the minimum order value to Rs 200 for food and beverages, and Rs 300 for all other categories, including shipping charges. This was missing in the previous incentive structure. But among the most significant changes is a cap on the maximum incentive per order to Rs 100, whereas the earlier structure allowed potential discounts of up to Rs 125 per order. This earlier scheme was as per the first phase of the incentive programme that had come into effect on March 7 as an amendment to the initial January 30 notification.
Another huge rollback on discounts is that a buyer will now be eligible for incentives only on a maximum of five orders per month. This is in sharp contrast to the previous incentive structure, under which a buyer could avail of a discount of Rs 50 on each of three orders per day on any ONDC buyer app. Under the previous programme, ONDC had also allowed seller apps to offer free delivery of up to Rs 75 that they could later get reimbursed.
The new scheme does not mention any incentive to facilitate free deliveries by seller apps. The discount on delivery charges will now likely have to be claimed by buyer-side apps as part of the Rs 100 maximum discount per order.
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
Alpha Max offers high end solutions in the network space to en
The vision at Alpha Max is to attain quality as the trademark and create a
Autodesk continually pushing the boundaries in the Design and
Autodesk’s vision is of a better world designed and made for all. It inte
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
DIGISOL SYSTEMS LTD.
GLOBUS INFOCOM LTD.
QUICK HEAL TECHNOLOGIES PVT. LTD.
NETWEB TECHNOLOGIES INDIA LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Icons Of India : Arundhati Bhattacharya
Arundhati Bhattacharya serves as the Chairperson and CEO of Salesforce...
Icons Of India : Anil Agarwal
Anil Agarwal, the Founder and Chairman of Vedanta Resources Ltd., is r...
ICONS OF INDIA : VIJAY SHEKHAR SHARMA
Vijay Shekhar Sharma is an Indian technology entrepreneur and multimil...
PARTNER SPEAKERS
PSU
HPCL - Hindustan Petroleum Corporation Ltd.
HPCL is an integrated oil and gas company involved in refining, market...
STPI - Software Technology Parks of India
STPI promotes and facilitates the growth of the IT and ITES industry i...
C-DAC - Centre for Development of Advanced Computing
C-DAC is uniquely positioned in the field of advanced computing...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - RAVI KUMAR S, CEO- Cognizant
Ravi Kumar S, appointed as CEO of Cognizant in January 2023, sets the ...
Indian Tech Talent Excelling The Tech World - NEAL MOHAN, CEO - Youtube
Neal Mohan, the CEO of YouTube, has a bold vision for the platform’s...
Indian Tech Talent Excelling The Tech World - JAY CHAUDHRY, CEO – Zscaler
Jay Chaudhry, an Indian-American technology entrepreneur, is the CEO a...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
