The Government-backed Open Network for Digital Commerce (ONDC) will begin levying a transaction fee of INR 1.5 for every successful order exceeding INR 250 starting January 1, 2025.
This decision comes as the network seeks to recover operational costs while maintaining its commitment to its not-for-profit mission.
Fee Structure and Application
According to a notification issued by ONDC, the fee will be applicable to seller network participants (SNPs), including integrated and managed sellers, logistics service providers, and financial entities such as lenders, insurers, and mutual fund providers operating on the platform.
Key points of the fee structure:
- Fee Applicability: Only on successful transactions above INR 250, excluding orders that are returned, refunded, or canceled.
- Exemptions: Transactions below the threshold or canceled before fulfillment.
- Collection Process: SNPs must report chargeable transactions by the 7th of each month, with invoices issued by ONDC by the 15th. Payments must be cleared within 10 calendar days via bank transfers to ONDC’s designated account.
Sustainable Operations and Future Investments
ONDC stated that the new fee will help sustain and enhance its digital infrastructure while supporting further innovation.
“The fee will ensure that ONDC can continue providing reliable infrastructure services to the Network ecosystem, while adhering to its not-for-profit principles, and also make further investment into the ecosystem for sustained growth and innovation.” the notification explained.
Rapid Growth of ONDC
The decision to introduce transaction fees follows a period of rapid expansion for ONDC, which recorded 14 million transactions in October 2024, representing a staggering 200% year-on-year growth from 4.5 million transactions in October 2023.
In November 2024, the platform processed 14.5 million transactions, further highlighting its scaling success.
With over 6.38 lakh sellers and service providers across 609 cities, ONDC is emerging as a significant player in India’s e-commerce ecosystem.
