How will blockchain technology change the e-commerce retail industry in the coming years?
Blockchain technology is undoubtedly a revolutionary technology designed to store transactional data, which is not limited to financial activities but applies to any distinct action that requires an indisputable record, such as actions related to payments or order fulfillment.
Currently, most e-commerce sites such as Alibaba, Unilever, eBay, etc. are working on implementing blockchain technology. Blockchain is the latest technology that is set to be the next big thing in the future of the e-commerce industry.
As the e-commerce industry is the fastest growing industry, many issues have emerged in today’s e-commerce business model. Most of these issues are related to payments, supply chain management, data security, transparent market, retailer satisfaction, efficient management system, and consumer satisfaction.
It is expected that in the near future, blockchain technology will help solve all these issues and have a potential impact on the e-commerce sector.
In this article, we explore how blockchain can solve problems in e-commerce and how it will transform the e-commerce industry.
Blockchain in e-commerce
Blockchain technology is transforming E-commerce It is revolutionizing the industry by offering low-cost financial transactions, high security standards, and an overall great customer experience. Here are some practical ways how blockchain technology is changing the e-commerce industry.
1. Alternative Payment Methods
Before the advent of blockchain-powered currencies, sharing and receiving money was never that easy. Today, cryptocurrencies are commonly adopted as an alternative currency, and shoppers can pay with Bitcoin just as they can with PayPal, Stripe, or any other payment processor.
Bitcoin offers a variety of benefits to both customers and merchants over traditional currencies, allowing customers to share and receive money as quickly as sharing a QR code.
Some blockchain projects such as Request Network and ECoinmerce are moving forward with the aim of building a blockchain-based marketplace with fast and secure transactions for any e-commerce business model.
Request Network implements blockchain technology into the financial transaction side of the e-commerce industry by providing cost-effective financial transactions, high security standards, and an overall superior customer experience.
2. Faster transactions
Blockchain transactions operate on a single main network and do not require any third party involvement. The speed of online transactions is controlled by the network speed and the rate at which new blocks are formed.
Additionally, because blockchain technology spans multiple systems, business owners can reduce costs associated with IT support, administrative tasks, and more.
Also, cryptocurrencies like Bitcoin, Bitcoin Cash, Litecoin and other digital currencies are significantly cheaper than traditional currencies, therefore reducing transaction costs can provide significant savings to customers and shopkeepers.
3. Improved order fulfillment
One of the main benefits of incorporating blockchain technology into your business is E-commerce platform Each block in the blockchain links to the previous one, creating a visible sequence of events that closely mirrors the process of fulfilling an order.
For example, when a customer places an order on a blockchain-powered e-commerce site, at each step of the ordering process, a new block is added to the chain along with the time required to perform that particular action.
When a customer orders something through blockchain-powered e-commerce, as soon as they select the product and enter the shipping information, the marketplace generates a block as a proof of work.
Similarly, after each step is completed, a block is automatically generated that validates the entire order fulfillment process.
Blockchain technology has other benefits too: It reduces disputes over payments and other order details, and while it's reported that only 1-3% of e-commerce transactions worldwide face payment or order disputes, blockchain's public record could reduce this number even further.
4. Supply Chain Management
Blockchain technology not only makes all order fulfillment and transactions traceable more securely and transparently, but also brings endless possibilities to the entire e-commerce supply chain.
A blockchain-based e-commerce platform will record every transaction, every time a single product is transferred, meaning that blockchain-powered e-commerce sites can easily create a permanent history of every product, from production to sale.
The introduction of blockchain technology into the world of e-commerce will drastically reduce the time delays, added costs, and human errors that disrupt transactions today.
The introduction of blockchain technology in the supply chain will ensure transparency of the data recorded, which will be beneficial for retailers, e-commerce platforms and customers as it will ensure that any changes in quantity or quality are tracked.
5. Efficient operation
of Blockchain Technology Retailers can store all information in the cloud, eliminating the need for administrative work. Additionally, the logging process is digitized, making it easier for retailers to access the information they need without relying on other partners.
Blockchain technology makes operations more efficient: retailers can access all product-related information in one place, which improves both communication and business processes.
6. Increased trust
Blockchain promotes transparency due to its decentralized nature. Customers and retailers can access information about shipment tracking at any time. Retailers can know where their inventory is at any time, which is especially useful in the e-commerce industry. It also helps retailers determine when goods will arrive and if their vendors are supplying the correct products.
Moreover, the information stored on the blockchain cannot be tampered with by third parties, which makes the virtual network unhackable. The adoption of blockchain technology in e-commerce not only reduces the rate of cybercrime, but also builds trust between shoppers and retailers through transparency.
Blockchain is the future of e-commerce
Blockchain will change the future of e-commerce. Major companies such as Amazon and eBay have already started investing in blockchain technology.
Blockchain technology eliminates the middleman and third party organizations from the business model. The application of blockchain technology in the e-commerce model can significantly reduce the time consumed in the overall process, from inventory management, ordering, delivery operations, and other e-commerce related functions. We expect blockchain technology to penetrate the entire e-commerce industry very soon.
Author Profile:
Sundas Noor I'm a digital content producer working at Cubix.Co., Ltd.Software development company in Washington DC. Writing about digital marketing, blockchain development, game development, and artificial intelligence.
