How to Sell on ONDC: A Step-by-Step Guide for Small Sellers in Bihar

This guide is for small shop owners, home-based sellers and artisans in Bihar who want to sell on ONDC (Open Network for Digital Commerce) without depending on one big marketplace. You will learn how ONDC actually works, how to pick a seller app, what documents you need, what GST rules apply, how fees and delivery work, and the mistakes that waste time.

ONDC is not an app you download to shop. It is a government-backed open network, a common set of rules that lets many shopping apps talk to many seller apps. When you list your products through one seller app, buyers on several different buyer apps on the network can find and order them.

What is ONDC and how is it different from Amazon or Flipkart?

On a traditional marketplace, the same company runs the shop window, the seller dashboard, the payments and usually the delivery. You follow its rules and pay its commission.

ONDC splits these jobs between different players:

• Buyer apps are where customers search and order.
• Seller apps (officially called Seller Network Participants or SNPs) are where you list products, receive orders and see payments.
• Logistics partners pick up and deliver.
• ONDC sets the common protocol so all of them work together.

For a shopkeeper in Gaya or Bhagalpur, the practical meaning is simple: you manage one catalogue in one seller app, and it can be visible on multiple buyer apps. You are not locked into one platform's search ranking.

Who should sell on ONDC?

ONDC is worth trying if you fit one of these:

• A kirana, sweet shop, bakery or snacks brand that can deliver within the town
• A maker of packaged food, pickles, sattu, makhana or tilkut with proper labels and FSSAI registration
• An artisan selling Madhubani paintings, Sikki grass products, Bhagalpuri silk or handloom items
• A small manufacturer or wholesaler wanting orders from other towns
• A service business in categories the network supports in your area

It is less useful if your prices are not fixed, your stock changes every hour and you cannot update it, or you cannot pack and hand over orders quickly.

How to register on ONDC: step by step

You do not register on ONDC directly. You register with a seller app that is live on the network. The steps are broadly the same everywhere:

1. Choose a seller app. ONDC publishes a list of network participants on ondc.org. Compare two or three on fees, languages, delivery support and how easy the catalogue tool is on a phone.
2. Sign up with your mobile number and basic business details (shop name, address, category).
3. Complete KYC. Upload PAN, bank account details and, where the app asks, GSTIN, Udyam certificate, FSSAI licence for food, and address proof.
4. Set your service area. Decide the pin codes or distance you will serve and your opening hours.
5. Build your catalogue. Add product name, clear photo, MRP, selling price, unit (kg, pack, piece), stock and, where needed, HSN code and GST rate.
6. Choose delivery mode. Self-delivery, the app's logistics partner, or both.
7. Go live and test. Place a small test order from a buyer app with a friend's phone to check that the product shows correctly and the order reaches you.

Approval can take a few hours to a few days depending on the app and your documents.

Documents checklist

• PAN of the business or proprietor
• Aadhaar of the proprietor (for KYC)
• Current account or savings account in the business name, with cancelled cheque
• GSTIN if you have one (see the GST section below)
• Udyam registration, useful for government support schemes
• FSSAI registration or licence for any food product
• Shop photo and address proof

If you have not done Udyam yet, our Udyam registration guide walks you through the free process.

Is GST mandatory to sell on ONDC?

This is the question most sellers in Bihar ask, and the honest answer is: the law allows some sellers without GST, but many apps still ask for it.

According to ONDC's own tax guidance, since 1 October 2023 an unregistered seller can supply goods through an e-commerce operator if all these conditions hold:

• Turnover is below the GST registration threshold for the state
• Sales are only within the same state (intra-state)
• The seller has a PAN and has taken an enrolment number from the GST portal

So a home baker in Patna selling only to Patna customers may legally sell without a GSTIN. But if you want to ship to Delhi or Kolkata, you need GST registration. And each seller app decides its own onboarding rules, so confirm before you sign up.

If you are close to the threshold or want to sell outside Bihar, read our GST registration guide for small businesses in Bihar first.

TCS and TDS in one line each

• GST TCS: for GST-registered sellers, the e-commerce operator may collect a small tax at source on net sales, which you can claim back in your GST returns.
• Income tax TDS (194-O): the operator may deduct a small TDS on your sales, which shows in your Form 26AS and is adjusted in your income tax return.

Keep your monthly settlement reports so your accountant can match these.

What does it cost to sell on ONDC?

ONDC does not publish one fixed commission for all sellers. Your cost is usually made of:

• Seller app fee: a subscription, a per-order fee, a percentage, or a mix
• Buyer app share: a percentage agreed on the network for that order, shown in the order terms
• Delivery charge: if you use the app's logistics partner
• Payment gateway charge: sometimes included, sometimes separate

ONDC's pitch is that total costs are lower than on large marketplaces, and many sellers do find that. But the numbers change by app and category, so do your own maths. Suppose a Sasaram sweet shop sells a 1 kg box of khaja for ₹400. Add up every fee and delivery cost for that box and see what reaches your bank. If it is less than your margin, raise the online price slightly or set a minimum order value. Our guide on how to price products for a small business explains how to build these costs into your price.

Getting government support: the MSME TEAM initiative

The Ministry of MSME's Trade Enablement and Marketing (TEAM) initiative, run through NSIC, aims to help lakhs of micro and small enterprises get on ONDC between FY 2024-25 and FY 2026-27, with a focus on women-owned units. As per the official ONDC page on the MSME TEAM scheme, you need a valid Udyam registration, must not already be an ONDC seller, and incentives are for micro and small enterprises whose main activity is manufacturing or services. Registration happens through the TEAM portal on msmemart.com. Check current eligibility there before applying, because scheme details can change.

Delivery and logistics: what works in Bihar

Delivery is where most small sellers win or lose on ONDC.

• Hyperlocal (same town): For groceries, sweets and bakery in Patna, Muzaffarpur or Gaya, self-delivery by your own staff within 3-5 km is often cheapest and fastest. Set a clear radius.
• App logistics partners: Many seller apps can book a rider for pick-up. Availability is better in Patna than in smaller towns, so test it in your pin code.
• Inter-city shipping: For non-perishable items like handicrafts, sattu or makhana packs, courier partners through the seller app handle pick-up. Pack well, because returns due to damage cost you twice.

Always mark items as out of stock the moment they run out. Cancelling orders hurts your rating on the network.

Tips to get more orders on ONDC

1. Photos sell. Use daylight, a plain background and the actual product. Blurry photos are the top reason buyers scroll past.
2. Write names the way people search. "Sasaram khaja 500 g" works better than "Special item 1".
3. Keep prices consistent. If your ONDC price is much higher than your shop price, local buyers notice.
4. Accept digital payments smoothly. Most ONDC orders are prepaid. See our note on UPI and QR payments for small businesses for safe settlement habits.
5. Pack with your phone number and a thank-you note. Many first-time online buyers will call you directly next time.
6. Promote your ONDC listing on WhatsApp status and your Google profile. The WhatsApp Business guide for local shops shows how to share catalogue links.

Common mistakes to avoid

• Signing up on a seller app without reading its fee card and settlement cycle
• Listing 200 products on day one and then failing to update stock
• Ignoring GST: selling outside Bihar without a GSTIN
• Food items without FSSAI number and proper labels
• Not checking settlement reports against orders every week
• Treating ONDC as the only channel instead of one more channel

Order volumes on any open network vary by category and city, so do not stop selling offline or through WhatsApp while you test ONDC.

Next steps

Pick one seller app, list your 20 best-selling items with good photos, and run it for a month while tracking every order and fee. Meanwhile, make sure local customers can also find you when they search nearby: list your business free on Bihar Directory so buyers on the web and Android app can call you, WhatsApp you and see your offers. Hindi readers can read our ONDC guide in Hindi.

This is general information, not legal or tax advice. Confirm current fees and GST rules with your seller app, ondc.org and a qualified tax professional.