Ecommerce has made unprecedented progress in the last few years, creating a massive roar in the digital world. It has transformed the conventional way of shopping and has led to persuade many people to purchase online.
It’s a new trend for shopping in the ongoing 21st century, pushing the brick-and-mortar shop model back. You can also have your e-commerce store by contacting an e-commerce development company in India.
Since technology has always facilitated the way for online ventures, Blockchain in e-commerce is one of them. Blockchain ensures different crucial features required in online commerce.
Now you must be thinking about what Blockchain is and how it helps e-commerce businesses to flourish exponentially. But before getting deep into it, let’s have a look at the following facts and figures.
- As per Statista, the global blockchain market is expected to be worth $39 billion in the year 2025.
- According to a report, 85% of consumers conduct online research prior to an online purchase.
- According to a source, 3 to 5% of the 38.5 billion e-commerce transactions per year-end in a dispute.
- A report stated, in 2017, online transactions in B2C sales were $2.3 trillion that is estimated to be $4.5 trillion by the end of 2021.
What is Blockchain?
Blockchain, also known as distributed ledger technology, is built around a P2P system that ensures the foolproof security of transferring data and money.
Blockchain combines transaction data in the form of blocks and later converts blocks into a chain. Since every block is saved into a different computer, it ensures the whole process’s security and reliability.
Benefits of Integrating Blockchain in Ecommerce
The e-commerce business is prospering worldwide where big eCommerce companies like Amazon, Flipkart, and Myntra contribute a lot to giving it a new dimension.
Competition is very high in this sector as even brick and mortar shop owners transition their business to an eCommerce store. Almost all eCommerce companies are offering the same products and services. Thus it becomes the need of the hour to stand out from the crowd.
Blockchain provides a solution to this actual problem with its inherent features invariably. It has the caliber to allow enterprises to conduct businesses online quickly and safely.
Below is a detailed analysis of how integrating blockchain into eCommerce would be promising.
1. Supply Chain Monitoring
Since there are so many procedures involved in supplying goods from producers to manufacturers and retailers to consumers, it becomes complicated to handle all the elements.
Applying blockchain here ensures the product traceability from its origin to the final reach, and if in the middle there is any mismatch related to the items, it traces immediately. Hence, you can overcome the stress of handling the supply chain efficiently.
While transacting the data and money, you focus on transparency and traceability since they are the most significant business parts.
Blockchain’s distributed ledger feature allows you to keep an eye on transactions of data and payments safely. None can tamper with the trades, and if one does, he will be caught red-handed.
3. Inventory Management
To check the list of your retail store is somewhat an inseparable part of the regulation of the eCommerce business. One can not deny the fact that this is relatively important for increasing the customer base.
Blockchain technology enables checking the retail store’s content list from time to time so that supply items don’t get stuck.
One of the most comprehensive features of blockchain technology is cost saving. Cryptocurrencies such as Bitcoin help reduce the cost as there are no charges levied on crypto transactions.
Moreover, you don’t need to hire IT support staff to look into inventory management, write product descriptions, and add images.
5. Removal of Intermediaries
Before the arrival of blockchain, the seller and the buyer had to go through several intermediaries to complete the transaction involving finance, banking, contacts, and retail.
Now, no more intermediaries are involved as blockchain has replaced the system with a decentralized ledger of chained records.
6. Reduce Frauds
Online fraud is one of the biggest challenges eCommerce websites face as fraudsters impersonate legal account holders, access usernames and passwords, and make purchases on their behalf.
Have a look at the following stats to configure the online scams taken place over time.
- According to a source, consumers lost 1.4 billion dollars due to online fraud in 2018.
- E-commerce businesses lose 3.94 billion dollars for every 1 dollar from a chargeback.
- 80% of traders file disputes for illegal chargebacks.
If eCommerce businesses integrate decentralized ledger technology to verify all the party accounts, they will eliminate fraud’s chances and transacting disputes to zero levels.
7. Easy to Access Receipts and Warranty
It’s impossible to keep paper receipts of purchase and warranty for a long duration, creating ambiguity to prove the authenticity of buying the product and availing warranty benefits.
Thanks to blockchain technology, you need not bother to store your receipts and warranty because it provides customers the convenience to keep the same as long as they require.
8. Boosting Up the Trade
Blockchain technology boosts trade and commerce beyond the imagination as it administers all the necessary equipment to increase the sale quickly.
Decentralized ledger technology of blockchain enables enterprises to effectively foster the business, from supply chain monitoring to inventory management and intermediaries’ removal to reduce fraud.
9. Maintain Genuine Reviews
Reviews are essential features of the product and services because customers prefer to go through the reviews before making an online purchase. So we can comprehend that the reputation of an enterprise relies on the authenticity of the reviews.
Blockchain technology ensures the reviews’ legitimacy and facilitates improving the relationship between customers and businesses.
Some Popular Brands Using Blockchain Technology
Several popular brands use blockchain technology to provide a better user experience, like easy and faster payments, traceability of products, and guarding their data at a similar time. And in return, they are cultivating high growths. Some of these are Walmart and Unilever.
Walmart: Walmart is an international retail brand having 11,443 stores and clubs in 26 countries that originated in America. It is using blockchain technology administered by IBM to monitor its food supply chain process.
Unilever: Unilever is a UK-based consumer goods company that provides food, coffee, beauty products, personnel care, etc. all across the world.
It has a clear vision of integrating blockchain to bring transparency and traceability to establish deforestation-free supply chain processes.
As discussed above, you must be aware now as to how integrating blockchain in the eCommerce sector is relatively significant. It’s not only an imperative requirement but also the mascot for your eCommerce business to develop exceptionally.
You can contact one of the topmost blockchain development companies in India to benefit from scintillating technology.
Blockchain and eCommerce: How Do They Make a Winning Combination? was originally published in DataDrivenInvestor on Medium, where people are continuing the conversation by highlighting and responding to this story.