ONDC Network Policy Genesis
Introduction
The ONDC network policy origination came from the thought that, E-commerce has traditionally been operated under the platform model, where a central entity controls the entire value chain, including customer acquisition, buyer experience management, vendor onboarding, order-flow management, fulfillment and logistics, payment collection, and grievance redressal. In contrast, the ONDC Network adopts a decentralized model, unbundling various e-commerce functions such that distinct entities can perform these functions. The simplified graphic below illustrates the governance structure on the ONDC Network
Legal Relationships on the ONDC Network:
In an individual transaction on the ONDC Network, the buyer and seller are bound by the terms outlined in the sale, and the title for the goods is transferred from the seller to the buyer through the invoice. Key legal relationships include:
- Buyer and Seller: Bound by the terms of the sale, with the title transfer of goods or services provided through the invoice.
- Buyer and Buyer App: A persistent legal relationship exists between the buyer and their Buyer App, established when the buyer agrees to the terms while signing up on the Buyer App.
- Seller and Seller App: A persistent legal relationship exists between the seller and their Seller App, established when the seller signs up on the Seller App.
- Buyer App and Seller App: A legal relationship is established through the Transaction-level Contract to facilitate the specific transaction between the buyer and seller.
- Buyer App and Seller App with ONDC: They only have a persistent legal relationship with ONDC through the Network Participant Agreement and ONDC Network Policy.
