ONDC Partners with iThink Logistics for MSMEs

E-commerce logistics aggregator, iThink Logistics, has joined forces with the Open Network for Digital Commerce (ONDC) to expand its reach and provide micro, small and medium enterprises (MSMEs) with cost-effective delivery solutions. This collaboration, announced in early April 2024, is a significant development for the Indian e-commerce landscape, aiming to empower MSMEs with greater autonomy and growth potential.

Leveling the Playing Field for MSMEs

By integrating with ONDC, iThink Logistics grants MSMEs access to a broader customer base beyond the limitations of established e-commerce marketplaces. ONDC’s open network structure dismantles silos and fosters a level playing field, allowing MSMEs to compete effectively against larger brands. This empowers them to tap into new markets and wider audiences, ultimately driving business growth and diversification.

Cost Optimization Through AI-Powered Logistics

One of the primary benefits for MSMEs through this partnership is the access to competitive shipping rates facilitated by iThink Logistics’ AI-powered courier aggregation platform. This empowers MSMEs to compare and choose the most cost-effective delivery options from a pool of multiple courier companies. Imagine a small business owner in Jaipur being able to find the most economical delivery partner for their handcrafted jewelry, reaching a wider audience in, say, Chennai, without the constraints of a single marketplace’s pricing structure. This newfound flexibility can lead to significant cost savings on shipping compared to traditional marketplace-driven models, ultimately boosting profit margins for MSMEs.

Enhanced Customer Experience: Trust and Transparency

The integration goes beyond just cost benefits. MSMEs can leverage iThink Logistics’ platform to offer real-time shipment tracking and improved delivery visibility to their customers. This enhanced transparency translates into a more trustworthy and reliable brand experience, fostering customer satisfaction and loyalty. Imagine a customer in Delhi who ordered spices from a family-run farm in Kerala being able to track the exact location of their package, fostering a sense of trust and encouraging repeat purchases.

A Symbiotic Partnership: Empowering MSMEs and Strengthening ONDC

Shireesh Joshi, CBO of ONDC, highlighted the importance of logistics in the e-commerce landscape and welcomed iThink Logistics to the network. He expressed confidence that this partnership would significantly enhance delivery options for MSMEs on the ONDC platform.

With a daily shipment volume exceeding 35,000, iThink Logistics brings its expertise and established network to the table. This collaboration with ONDC, which boasts over 2.3 lakh sellers and service providers including MSMEs, FPOs, SHGs, and social sector enterprises (as of December 2023), has the potential to revolutionize the Indian e-commerce landscape. By empowering MSMEs with open network logistics solutions, this partnership can foster a more competitive and inclusive digital marketplace that benefits both businesses and consumers.

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