Many techs, app, online business running and cross platform mobile app development companies have started to think of Blockchain as the future of digital transactions.
So, where the technology has made a name for itself in the crypto realm, it is now gaining critical acclaim in the eCommerce world as well.
The application of blockchain technology in ecommerce is quickly gaining momentum. Businesses nowadays are increasingly adapting to this technology to foster safe and seamless financial transactions.
Furthermore, the ledger technology used in blockchains is currently helping the eCommerce industry solve business problems.
There's so much to expect from blockchains technology in the eCommerce sector and digital experts rightly believe the technology will establish strong pillars of customer trust and loyalty.
Therefore, today I'm going to tell you what eCommerce has achieved until now – what are the benefits of this technology, and where we are headed!
So, are you an entrepreneur willing to capitalize on the revolutionary aspects of blockchain in ecommerce tech?
Well then, without any further ado – let's start unveiling!
Blockchain in eCommerce: The Dynamic Duo
Blockchain tech and eCommerce tech both are closely related to financial transactions.
Today's headless ecommerce technology is fully capable of handling user-related activities such as payment processing, product searching and purchasing, and even customer care.
The most unique and common blockchain technologies used in the eCommerce world are Ethereum and Bitcoin.
Both the technologies serve different purposes when it comes to the eCommerce world!
Ethereum provides a platform for eCommerce websites that enable them to manage their own blockchains. Similarly, Bitcoin, the pioneer cryptocurrency allows easy payments.
Benefits of Deploying Blockchain in eCommerce
The benefits of blockchain for eCommerce can literally have an entire article of its own.
And that's because the technology can solve some of the most concerning problems of the eCommerce industry, i.e., cyber threats, financial security.
Because of these aspects, I believe that the benefits of blockchain in eCommerce should have an article of its own.
Still, however, I will list some of the advantages of blockchain tech in eCommerce related to retailers and buyers.
1. A Cost-Cutting Solution
Cost is the most critical concern of any business, digital or physical, and blockchain resolves this issue efficiently.
Blockchain tech can be integrated with inventory management, payment processing, product descriptions, and other business activities.
Therefore, businesses get the opportunity to spend less on maintaining systems or hiring IT staff.
Additionally, Cryptocurrency like Bitcoin doesn't charge you a transaction fee, unlike banks, so that's another cost-reducing aspect.
2. Ensuring Optimal Security
While managing thousands of customers, eCommerce stores rarely get time to focus on their security aspects.
The rising demands of the customers and super-tough competition are probably some of the most obvious reasons why eCommerce businesses experience difficulties while ensuring optimal security.
This is the reason why countless eCommerce brands have ended up losing all their customer data and millions of dollars.
Having low security means that you're actually inviting cyber-criminals to attack!
So, how does blockchain solves this problem?
The integration of blockchain with the ledger technology enables it to provide the highest level of security.
Therefore, it is critical for online eCommerce businesses to leverage blockchain to solve the security challenge.
3. Seamless Transactions
We all know that blockchain can foster seamless transactions online, but how does it do it?
Blockchain is a vast domain, and with technologies such as Waves or Stellar, the technology can make fast payments.
In the past, buyers used to spend hours and hours making payments. With the inception of blockchain, buyers got the convenience they need when shopping online.
4. Fostering A Culture Of Trade In 3rd World Countries
It is quite remarkable that blockchain technology has given 3rd world countries a chance to step into the world of online trade.
Come to think of it, the whole point of this blog is to educate the entrepreneurial community, specifically the eCommerce entrepreneurs, on the benefits of leveraging blockchain technology.
The same goes underneath this heading, as the peer-to-peer system of Bitcoin has enabled countries to eliminate the requirement of a middleman to trade.
Moreover, online retailers can take advantage of the consumer markets in 3rd world countries through these technologies.
Blockchain In eCommerce: 6 Revolutionary Aspects
Blockchain like AI is super-important for delivering a robust experience to the customer.
If you want to know how AI is changing the eCommerce industry, check out this article.
Anyways, blockchain and eCommerce businesses have formed an alliance.
This alliance led to the creation of an economic ecosystem that is viable and feasible for both parties – customers and online sellers.
For example, an online store leveraging ledger technology to strengthen its business processes has opened itself to several opportunities to engage its customers.
So, here are some possibilities that blockchain technology has introduced in the eCommerce industry:
1. Automated Contracts
Automated or smart contracts are capable of digitizing certain operational activities involved in an eCommerce business.
Another standout capability of blockchain is that it automates eCommerce-related processes.
Therefore, through automation, eCommerce businesses achieve a reduced cost of operation.
Additionally, smart contracts also foster efficient inventory management leading entrepreneurs to take control of their inventory.
2. Seamless Access To Receipts and Warranties
One of the challenges that customers face while buying online is that they lose paper receipts.
The aspect proved to be more than just frustrating as online buyers felt apprehensive about what they'll do if the product they're buying malfunctioned. How would they be able to prove the warranty of it?
With the introduction of blockchain in ecommerce, this challenge was solved as well!
The blockchain technology-enabled online retailers and customers leverage the convenience of storing receipts and warranties of the product they've bought, hence replicating a physical store like Walmart. Plus, the decentralized ledger transactions stay fraud-free and electronically recorded for decades.
Therefore, the trust level of countless online buyers increased drastically, and more and more purchases were observed.
3. Content Creators Got Paid
Content is perhaps the most integral part of an eCommerce store.
I mean, how can you get familiar with a product if you don't have any information on it?
Therefore, it is important to create content that intrigued the users into buying from an eCommerce business.
So, how exactly did blockchain get content creators paid?
Well, each time a content creator creates a post for an eCommerce site, they get digital tokens, courtesy of blockchains.
To pay the creators, eCommerce entrepreneurs can use their digital wallets.
But, then how do the content creators convert this currency to their preferred currency?
Digital wallets can do this for them as well.
4. Personalized Offers & Loyalty Programs
Want to keep your customers coming back for more? Yes, of course, that's what an online shopping business all about.
Personalized offers and loyalty programs can be the best way to do that!
How? Well, you can pay a certain amount (digital currency/points) to the customers once they've surpassed the specific spending benchmark.
How will online sellers pay these points to the customers?
Through blockchain technology, of course!
Furthermore, loyalty programs or personalized offers can also be used to attract customers and retain an existing one and ensure repetitive sales.
5. Reliable Supply Chain
The supply chain is yet another integral aspect of an eCommerce store.
How can an eCommerce store meet the demands of its customers if it lacks supplies, stocks, or inventory?
This aspect has also been taken care of by blockchain technology.
When operators use blockchain to monitor the supply chain, they're transparent with the available supplies and shortages.
Therefore, they can prevent vendors/suppliers from replacing or eliminate the demand for certain products.
6. Authentic Reviews
The reputation of an SME or an enterprise-level business relies on how legitimate (and good) their reviews are!
Therefore, it has become super-imperative that you get authentic reviews for your product, service, or business.
Luckily, blockchain technology is smart enough to verify legit reviews of a product or service.
Although this aspect is not yet fully applied or even functional in some cases – it will surely be a thing in the utopian future of the eCommerce business!
Conclusion
That was one long list of the advantages and benefits of blockchain technology!
The point is that you now have a clear vision in mind that to thrive in the digital world today – you need to integrate blockchain technology into your eCommerce store.
Because the world is turning to headless commerce with mobile apps and software solutions, especially after the novel coronavirus, a digital store with blockchain backing it up can become a revenue-generating machine like Amazon!
Lastly, besides being faster, safer, or cheaper, blockchain in ecommerce will facilitate major business activities making it convenient for entrepreneurs.
Therefore, leveraging this technology to make finances more transparent and secure may be the best way to ensure scalability and growth.
