How to Sell Products on ONDC in India: A Beginner’s Guide for Small Businesses

Running a small business in India is not always easy. You may have excellent products, reasonable prices, and loyal customers, but reaching people outside your local market can still be difficult. Opening more physical stores requires money, while selling through established online marketplaces often involves commissions, delivery arrangements, and other operating costs.

For shopkeepers, home-based entrepreneurs, manufacturers, and small business owners looking to expand online, ONDC (Open Network for Digital Commerce) offers another way to participate in India’s digital commerce ecosystem.

Unlike a traditional e-commerce marketplace, ONDC is an open network that allows compatible buyer and seller applications to connect. This can help small businesses make their products available to customers through participating shopping applications without depending entirely on one marketplace.

However, starting an online business involves more than uploading a few product pictures. You need to understand seller registration, required documents, product listings, pricing, delivery arrangements, payment settlement, and customer service.

This beginner-friendly guide explains how to sell products on ONDC in India, how seller onboarding works, what documents you may need, and how to prepare your business for online orders. Whether you own a small clothing shop, grocery store, or handmade products business, the following steps will help you understand where to begin.

What Is ONDC and How Does It Work?

ONDC stands for Open Network for Digital Commerce. It is an initiative established by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, Government of India.

Its purpose is to make digital commerce more open and accessible by enabling different shopping applications, seller platforms, and service providers to communicate through common network standards.

One important thing to understand is that ONDC is not a single shopping application or an online store. Instead, it is a network that connects different participants involved in online commerce.

In a conventional marketplace, sellers generally register on the marketplace’s own platform, and customers purchase products through that platform. ONDC works differently.

Under the ONDC model, a seller can join through a participating seller application. Customers using compatible buyer applications may then discover and purchase eligible products available through the network.

A Simple Example of How ONDC Works

Imagine that you own a small shop selling handmade bags in Jaipur. Your products are popular among local customers, but you want to reach more buyers without opening another store.

You register your business through an ONDC-connected seller application and upload your product catalogue, including photographs, descriptions, prices, and available stock.

A customer using a compatible shopping application searches for handmade bags. If your products match the search and meet the application’s discovery and delivery conditions, they may appear among the available options.

When the customer places an order, it reaches your seller application. You can then process the order and arrange delivery according to the fulfilment options available to your business.

This arrangement allows different participants to work together while giving sellers an additional online sales channel. However, product visibility, customer demand, available delivery locations, and actual sales can vary.

Who Can Sell Products on ONDC in India?

ONDC is designed to support a wide range of businesses, including smaller enterprises that may have limited experience with online selling.

Depending on the supported product categories, seller application’s eligibility requirements, and applicable regulations, the following businesses may be able to participate:

Local retailers: Small shops selling household essentials, clothing, accessories, and everyday products.
Grocery businesses: Neighbourhood stores offering packaged groceries and other permitted food products.
Handicraft sellers: Artisans producing handmade decorations, bags, pottery, and traditional products.
Small manufacturers: Businesses making their own goods and looking for additional distribution channels.
Home-based businesses: Entrepreneurs selling permitted products from home, subject to registration and other legal requirements.
Direct-to-consumer brands: Independent brands seeking to make their products available through multiple participating commerce applications.

Being a small business does not automatically disqualify you from joining. However, eligibility depends on the seller application, business documentation, product category, tax status, and relevant legal requirements.

For example, a business selling food products may need applicable food safety registration or licensing. Other regulated product categories may have their own documentation and labelling requirements.

Benefits of Selling on ONDC for Small Businesses

ONDC provides an alternative approach to digital commerce. For smaller businesses, its potential advantages include improved market access, more selling options, and greater flexibility in choosing service providers.

1. Opportunity to Reach More Customers

A physical store generally depends on customers visiting its location. Online selling can make products discoverable to people who may never have heard of the business.

Through ONDC, eligible product catalogues can become accessible across compatible buyer applications. Actual reach depends on supported categories, locations, application participation, and fulfilment arrangements.

2. More Options for Online Selling

Businesses often worry about becoming too dependent on one marketplace. Changes in commission structures, visibility, or platform policies may affect their operations.

ONDC’s open-network structure creates opportunities for sellers to work with different participating applications and service providers. It does not eliminate commercial agreements, but it may provide additional choices.

3. Potentially Competitive Selling Costs

ONDC aims to support a more competitive digital commerce environment. Depending on the service providers selected, sellers may find commercial arrangements that suit their business better than some traditional marketplace options.

However, selling through ONDC is not automatically free. Seller applications, buyer-side participants, payment services, and logistics providers may have applicable charges. Always check the complete fee structure before registering.

4. Opportunities for Local Brands and Artisans

Small manufacturers and local artisans sometimes struggle to reach customers beyond their immediate area. Digital catalogues can provide an additional way to present their products to potential buyers.

For example, a seller offering handmade home decorations may use online listings to explain the materials, dimensions, colours, and other product details that customers need before ordering.

Successful online selling still depends on product quality, pricing, reliable fulfilment, and customer satisfaction.

Documents Required to Register as an ONDC Seller

Before starting the registration process, prepare the basic documents and business information that a participating seller application may request.

The exact requirements can vary depending on your business structure, product category, tax status, and chosen seller application.

Document or Information	Purpose
PAN	Tax identification and business verification.
Business Name and Address	Identification of the seller and business location.
Bank Account Details	Receiving eligible payment settlements.
Mobile Number and Email	Account verification and business communication.
GSTIN or Applicable GST Enrolment Details	Tax verification according to the seller’s eligibility and legal requirements.
Product Information	Creating accurate online listings and catalogues.
Category-Specific Licences	Demonstrating compliance where product regulations require them.

Is GST Registration Mandatory for Selling on ONDC?

Not every seller is required to have a GST registration number in every situation. The answer depends on the type of business, annual turnover, supply location, and applicable GST provisions.

From 1 October 2023, eligible unregistered persons have been permitted to make certain intra-state supplies of goods through e-commerce operators, subject to prescribed conditions.

These conditions include applicable turnover limits, PAN requirements, obtaining the necessary GST portal enrolment number, and restrictions on inter-state supplies. Composition taxpayers also face specific conditions when selling through e-commerce operators.

Important: Small businesses should not assume that every type of online sale is allowed without GST registration. Before onboarding, confirm your tax eligibility through the official GST portal or a qualified tax professional.

ONDC also publishes tax guidance for network participants and sellers, including information about transactions involving unregistered and composition-scheme sellers.

How to Register and Start Selling on ONDC: Step-by-Step

For most small retailers, the practical way to get started is through a participating Seller Network Participant, commonly called a seller application or seller app.

You generally do not need to build an ONDC-integrated application yourself. Creating or operating an independent network participant application is a separate, more technical process.

Step 1: Visit the Official ONDC Website

Begin by visiting www.ondc.org, the official ONDC website.

Look for the section dedicated to sellers and brands. The website provides information about participating in the network and the roles played by different applications.

You can also explore the official Network Participants directory to understand which organisations support relevant product categories.

Remember that registering as an ordinary merchant is different from becoming a network participant. Most beginners should focus on finding a suitable existing seller application rather than applying to operate a new seller network platform.

Step 2: Choose a Suitable Seller Application

A seller application helps merchants connect their product catalogues to the ONDC network and manage important activities related to online orders.

Not every seller application supports every product category or business location. Before choosing one, check whether it serves your industry and offers the functions your business requires.

Compare the following factors:

Supported product categories and geographical areas.
Seller registration and verification requirements.
Applicable commissions, service fees, and other charges.
Product catalogue and stock management features.
Available logistics and delivery arrangements.
Payment settlement timelines and deductions.
Customer support, cancellation, return, and refund processes.

Choosing a seller application only because it advertises low fees may lead to problems if its delivery network or support services do not match your needs.

Step 3: Create Your Seller Account

After selecting a suitable application, follow its merchant registration process. The interface and exact steps may differ between providers.

You may be asked to provide your business name, contact details, store address, business type, tax information, and other verification documents.

Enter accurate information that matches your official business records. Incorrect bank details, inconsistent names, or incomplete tax information may delay verification or payment processing.

Review the seller agreement, privacy terms, applicable charges, and payment settlement policy before accepting them.

Step 4: Complete Business Verification

The seller application may review your submitted documents and verify whether your business meets its onboarding requirements.

Depending on the provider and product category, additional information may be requested before your account becomes eligible to list and sell products.

Keep your registration details, bank information, and applicable business licences ready for verification. Use the seller application’s official support channel if any requirement is unclear.

Once the necessary checks are completed, the next stage is preparing your product catalogue, setting prices, arranging fulfilment, and making your store ready to receive customer orders.

Step 5: Add Your Products to the ONDC Seller Catalogue

After your seller account has been verified, the next step is creating your online product catalogue. This is one of the most important parts of selling through ONDC because customers need accurate information before placing an order.

Your seller application will generally provide tools to add products, manage prices, and update availability. The exact interface and catalogue requirements depend on the application and product category.

A good product listing should include:

Product Title: Use a clear name describing exactly what you are selling.
Product Images: Upload sharp photographs showing the actual product from useful angles.
Description: Explain the material, dimensions, features, and other relevant details.
Selling Price: Display the correct price and applicable charges according to your seller application’s requirements.
Stock Availability: Keep the available quantity accurate to avoid accepting orders you cannot fulfil.
Product Variations: Mention available sizes, colours, quantities, or other options where applicable.
Required Product Information: Provide applicable manufacturer details, labels, and other legally required disclosures.

For example, instead of naming a product simply “Cotton Bag,” a more informative title would be “Reusable Cotton Shopping Bag – Medium Size, Blue.”

The second title helps customers understand the product without opening several listings. Clear descriptions can also reduce unnecessary questions, misunderstandings, and returns.

Step 6: Set Product Prices and Manage Inventory

Before publishing your catalogue, calculate how much each product costs your business. The selling price should account for purchasing or manufacturing costs, packaging, applicable platform charges, delivery arrangements, taxes, and the profit you want to earn.

A product that sells frequently is not necessarily profitable if the additional expenses are too high.

Inventory management is equally important. If your physical shop and online catalogue share the same stock, update product quantities whenever items are sold or received.

Practical tip: Start with a small selection of products that you can consistently keep in stock, package correctly, and deliver reliably. Expanding your catalogue gradually can make operations easier to manage.

Step 7: Arrange Packaging and Delivery

Once your products are ready, decide how orders will reach customers. Delivery availability depends on your seller application, geographical coverage, logistics arrangements, and the product category.

Some sellers may use supported logistics services available through their application, while others may have arrangements for managing fulfilment through approved providers.

Before accepting orders, confirm the following details:

Which customer locations can be served?
Who is responsible for collecting the parcel?
How are delivery charges calculated?
What packaging standards are required?
How will customers receive delivery updates?
Who handles failed deliveries and returned shipments?

Packaging should protect the product during normal transportation. Fragile goods may need protective cushioning, while clothing and other non-fragile items may require clean, secure, and weather-resistant packaging.

Accurate addresses, realistic dispatch times, and reliable packaging can help reduce avoidable delivery problems.

Step 8: Make Your Store Available for Customer Orders

After completing the required catalogue, pricing, inventory, and fulfilment settings, follow your seller application’s instructions to make the store operational.

Depending on the provider, your catalogue may need additional validation before it becomes discoverable through compatible buyer applications.

Once your store is active, review the listings to ensure that product information, prices, stock quantities, and serviceable locations are correct.

Remember: Being active on ONDC does not guarantee immediate visibility across every buyer application or a particular number of orders. Customer discovery depends on factors such as product availability, location, supported categories, and participating applications.

Step 9: Receive and Process Customer Orders

When a customer places an eligible order, the seller application facilitates the relevant order information and management process.

Merchants should regularly monitor their seller dashboard or authorised notifications to identify new orders, prepare available products, and meet agreed fulfilment timelines.

Check the order details carefully, including product variations, quantity, delivery instructions, and the applicable payment and fulfilment arrangements.

Prepare the correct items, use suitable packaging, and complete the handover or dispatch process according to your provider’s instructions.

Consistent order processing and clear communication are important for building customer trust.

Step 10: Track Payments, Settlements, and Returns

Receiving an order does not always mean the full selling price will immediately reach your bank account. Payment collection and settlement involve the arrangements established between relevant network participants and the seller.

Before starting, check how your selected seller application handles payment deductions, settlement reports, refunds, and any applicable charges.

ONDC provides a Reconciliation and Settlement Framework to support payment reconciliation between participating organisations. However, the actual payout experience and applicable timelines for an individual merchant depend on the provider’s operating arrangements.

Keep records of completed orders, invoices or bills, settlements, adjustments, and refunds. These records help with accounting and resolving payment discrepancies.

What Are the Charges for Selling on ONDC?

One common question among small business owners is whether selling on ONDC is free.

ONDC is an open commerce network, but using services offered by participating businesses may involve charges. There is no single universal merchant commission that applies identically to every seller application and transaction.

Depending on your service provider and selling arrangement, costs may include seller application fees, transaction-related charges, logistics expenses, packaging costs, payment-related deductions, and other applicable network or service charges.

ONDC’s network-level fee policies and commercial arrangements can also change over time. Sellers should review the current agreements and applicable fee disclosures instead of relying on an outdated percentage found online.

The official ONDC Network Participants directory is a useful starting point for identifying providers and comparing their offerings.

How Much Profit Can a Small Business Make on ONDC?

Your profit depends on your product margins, order volume, delivery costs, service charges, returns, and other business expenses.

Consider a simple example of a shopkeeper selling a household product for ₹500.

Particulars	Illustrative Amount
Product Selling Price	₹500
Product Purchase Cost	₹280
Packaging Cost	₹20
Seller and Transaction Charges	₹35
Seller-Borne Delivery Cost	₹50
Promotional Discount	₹15
Estimated Contribution	₹100

In this hypothetical example, the seller retains ₹100 after the listed direct expenses. This is a contribution towards profit, not necessarily the final net profit.

The calculation excludes applicable taxes, fixed operating expenses, potential returns, damaged goods, and other costs. The amounts are illustrative and do not represent official ONDC fees or guaranteed earnings.

Small businesses should calculate their own margins using the actual fee schedule provided by their chosen seller application.

How to Improve Your Chances of Getting More Orders on ONDC

Registering your business is only the beginning. Building a successful online store requires regular attention to product information, customer expectations, and operational reliability.

Use clear product photographs: Show the real item, its important features, and available variations.
Write accurate descriptions: Include useful specifications instead of exaggerated marketing claims.
Maintain accurate stock: Avoid unnecessary cancellations caused by unavailable products.
Set sustainable prices: Consider your complete costs rather than trying to offer the lowest price at any expense.
Dispatch orders reliably: Prepare products on time and follow agreed fulfilment procedures.
Respond to customer issues: Handle complaints and return requests through the appropriate official channels.
Review store performance: Monitor order completion, cancellations, returns, and actual profitability.

It is also useful to promote your store through legitimate business channels, such as your existing customer community or business website, where your seller application provides an appropriate store link.

Focus on providing dependable service instead of assuming that joining the network will automatically generate high sales.

Common Mistakes New ONDC Sellers Should Avoid

Beginners sometimes concentrate on registration while overlooking the operational details that influence customer satisfaction and profitability.

Some common mistakes include:

Choosing an unsuitable seller application: A provider may not support your product category, location, or preferred delivery arrangements.
Ignoring the complete fee structure: Delivery, packaging, service charges, and returns can reduce margins.
Uploading unclear product images: Poor photographs can make customers uncertain about what they are purchasing.
Providing incorrect stock quantities: Accepting orders for unavailable items may result in cancellations.
Overlooking tax requirements: Incorrect GST treatment or missing documentation can create compliance problems.
Failing to understand returns: Sellers should know how complaints, refunds, and reverse logistics are handled.
Expecting instant profits: Online selling usually requires continued improvements to pricing, operations, and customer service.

Taking time to understand these issues before launching can help small businesses avoid preventable financial and operational difficulties.

Frequently Asked Questions About Selling on ONDC

Can a small shopkeeper sell products on ONDC?

Yes. Small retailers may be able to sell through participating ONDC seller applications, provided their business, products, location, and documentation meet the relevant eligibility requirements.

Do I need a website to sell on ONDC?

Not necessarily. Many merchants can join through an existing seller application without developing their own e-commerce website. The application provides the necessary tools for supported seller operations.

Can I sell on ONDC without a GST number?

Certain eligible unregistered sellers can make permitted intra-state supplies through e-commerce operators, subject to conditions including turnover limits, PAN, and GST portal enrolment. Other sellers may need GST registration. Check your specific situation before starting.

Who delivers products ordered through ONDC?

Delivery is managed according to the fulfilment arrangements offered by the seller application and relevant logistics providers. Options and serviceable locations vary, so sellers should confirm delivery responsibility before accepting orders.

How long does ONDC seller registration take?

There is no universal registration timeline for all merchants. The process depends on the seller application, document verification, product category, and other applicable requirements.

Does ONDC guarantee sales after registration?

No. Joining ONDC provides an opportunity to participate in an open commerce network, but it does not guarantee product visibility, order volume, revenue, or profit.

Where can I find official information about ONDC?

Visit the official ONDC website for network information and participating organisations. Businesses can also consult the ONDC operational guidance and good practices resources for information about cataloguing, order management, packaging, customer support, and settlements.

Final Thoughts: Is ONDC Worth Exploring for Small Businesses in India?

ONDC provides an additional opportunity for small businesses in India to participate in digital commerce. By connecting different buyer applications, seller platforms, and service providers, the network offers an alternative to relying exclusively on a single online marketplace.

For local shopkeepers, artisans, manufacturers, and home-based entrepreneurs, the most practical approach is to begin with a suitable seller application, understand the registration requirements, and prepare accurate product listings.

Before accepting orders, calculate your complete selling costs, verify delivery arrangements, understand payment settlements, and ensure compliance with applicable laws.

Successful online selling is not simply about joining a new platform. It is about offering dependable products, transparent prices, reliable delivery, and good customer service.

If you are planning to take your small business online, start by exploring the official ONDC Network Participants directory, compare the services offered by suitable seller applications, and choose an arrangement that supports your products, location, and budget.

Take the first step carefully: verify your business requirements, review the costs, and build an online store that customers can trust.