5 Ways Blockchain Technology can Change your E-commerce Business
The E-commerce marketplace continues to evolve. E-commerce is easy, requires fewer resources and the best part is that it is lucrative. What is the next evolution in this sector? Imagine eCommerce and blockchain coming together. From e-commerce payment processors to shipping, blockchain technology can bring many significant changes in eCommerce. Banking, Cybersecurity, Supply Chain Management, Healthcare and Governments are the top five users of the blockchain.
The number of industries considering blockchain is increasing. E-commerce has not only changed the way people shop but also the way people live. Blockchain technology is going to establish a decentralized economy. Let’s see the 5 ways this technology will transform e-commerce.
E-commerce Payment Methods
In the beginning, cryptocurrencies like Bitcoin, Ripple and Etherum utilized this technology. If you have a blockchain-powered decentralized payment gateway, you can use this gateway to accept payments in cryptocurrencies. Bitcoin and other cryptocurrencies are better alternatives to fiat currencies. As blockchain is a decentralized technology, it is easy to implement. The following are the advantages of using cryptocurrencies for payments.
- It is decentralized. There is nobody that regulates blockchain.
- It is safe as the identity of the person making a payment is not revealed.
- Blockchain provides you with the freedom of transactions.
- Using blockchain for payments is easy to implement and use.
- A transaction is completed within minutes.
- It reduces the risk of fraud.
Supply Chain Management
This is an important element of the e-commerce business. You can solve many problems in supply chain management by implementing blockchain. Record keeping, tracking products and there are many other key activities in the supply chain management that can be improved with the implementation of blockchain.
A centralized database is not efficient enough. Being a decentralized technology, blockchain can make these activities more efficient, fast and secure. Embedded sensors and RFID tags make provenance tracking and record-keeping easy and fast. You can eliminate intermediaries. This not only reduces cost but also the risk of fraud. You can avoid unnecessary expenditure on inventory management.
Big retailers have been on the receiving end of backlash due to lack of transparency. This serious concern deserves attention. For example, Amazon disabled merchants’ pages with no explanation. You are establishing a decentralized environment by implementing blockchain in e-commerce. It is easy to monitor any wrongdoings. Transactions are efficient and frictionless.
Blockchain utilizes distributed ledger technology. This technology offers the best possible security when it comes to online databases. This is another good reason for implementing blockchain in e-commerce. Data available so far shows that there are negligible security breaches associated with blockchain-powered networks. Personally identifiable information is not exhibited in cryptocurrencies.
Transactions using Bitcoin, Etherium and other cryptocurrencies don’t require sensitive data from the consumer. The consumer gets a wallet and uses it to make authorized transfers. There is no risk of losing customer data. So, blockchain is the best way to address security challenges.
Reviews and Personal Offers
Reviews affect the number of sales, reputation and overall image of a business. Both customers and businesses rely on reviews. However, fake reviews are not good for the image of your business. Fake reviews can also promote a fraudulent business. You need legitimate, good reviews. When used correctly, blockchain can verify reviews. In a blockchain, data is stored in blocks. Each block is verified by each computer in the network. So, no one can alter the data.
You can use blockchain technology to issue reward points. This allows you to achieve more deals and customer satisfaction as you can offer personalized offers and discounts. You can retain existing customers and attract new customers.