How Blockchain is Transforming E-Commerce?
Be prepared for another transformation with the use of blockchain technology. Learn how blockchain is already causing a revolution in e-сommerce.
E-Commerce has been around for decades, and it has gone through a stunning transformation. Technological advancements have heavily influenced the concept of online selling in recent years.
All selling technologies have readily integrated Blockchain, which spells new chances for the sector because of its unrivaled potential.
"According to a recent research report, the worldwide blockchain market is expected to increase from USD 3.0 billion in 2020 to USD 39.7 billion by 2025."
E-commerce giants like Walmart and Amazon are already harnessing the power of Blockchain to improve the security, speed, and scalability of their online business.
Blockchain in E-Commerce
The eCommerce industry has transformed how we shop and live, and Blockchain is on its way to doing the same. By developing a decentralized economy, the introduction of blockchain technology in the eCommerce industry will spark a dramatic transformation.
When it comes to eCommerce stores, there is a lot of client transaction data and inventory. This data must be appropriately managed and stored to achieve valuable results. Blockchain technology addresses this scenario by grouping transactions in the form of blocks and connecting each block in the form of a chain.
E-Commerce Blockchain – the Benefits
Blockchain is beneficial to both companies and shoppers since it improves the security of online financial transactions. However, it also has a plethora of other advantages.
For internet retailers, data breaches and fraudulent transactions are essential risks.
According to Price Waterhouse Coopers' annual Global Economic Crime and Fraud Survey - "47 percent of organizations experienced fraud in the previous 24 months, resulting in a total loss of $42 billion."
Blockchain technology allows several trusted parties to verify a person's identity and delivers the highest level of security for customer databases and CRM systems.
Easier, Faster Transactions
There is no payment processing or pending transaction delays because blockchain transactions are almost immediate and do not go via traditional institutions. Customers benefit from faster order fulfillment because purchases can be made quickly.
Greater Access for Global Customers
Clients in developing countries do not have access to a reliable financial system. Blockchain and cryptocurrencies enable them to avoid the banking middleman, allowing access to many eCommerce sellers. Furthermore, it will enable forward-thinking brands to enter new and emerging markets.
Blockchain technology enables retailers to combine services such as payment processing, inventory management, product descriptions, and so on, allowing them to spend less money on purchasing and maintaining separate systems.
Furthermore, because cryptocurrencies such as Bitcoin can be sent quickly peer-to-peer, there is no need to use financial systems. This reduces bank fees for issuing or obtaining funds and credit card company fees for processing payments.
Efficient Business Processes
Blockchains can store more than simply transactional data. They can keep smart contracts, which can automate processes like automatic payments and inventory management based on predefined rules and if-then statements.
Blockchain can also store digital records such as customer receipts and warranty information, making it easier to validate ownership and warranty information while reducing the need for paper records.
6 ways Blockchain is transforming eCommerce
Blockchain has many supporters in the retail and eCommerce industries. Blockchain is a decentralized, shared database that allows easy detection of any changes made. It provides high transparency and reliability.
As a result, forward-thinking eCommerce organizations use it to boost business efficiency, speed payment operations, and, most crucially, secure data security. Alibaba, a worldwide e-commerce corporation, implements Blockchain in its cross-border logistical processes.
This is one of the most critical issues existing eCommerce platforms are dealing with. Yes, several large merchants are being accused of transparency because of recent backlash, As Amazon, a large eCommerce corporation, was recently in the news for abruptly deleting a merchant's page without explanation.
As a result, blockchain technology in the eCommerce marketplace will be beneficial since it will create a decentralized environment in which any wrongdoings on the merchant or business can be effectively monitored.
Furthermore, a transparent eCommerce marketplace makes it easier to complete transactions efficiently.
Walmart and Unilever recently released a statement on current blockchain developments, indicating that they are now looking to the footing in blockchain-based offerings.
Online buyers would benefit significantly from implementing blockchain technology in the supply chain because they will be able to trace their order status at any time.
Furthermore, like Blockchain, customers will track goods from factory to merchant, bringing transparency to the market. Simultaneously, because retailers will be able to keep track of their inventory, they will produce more accurate sales estimates, undoubtedly making their jobs easier.
Alibaba's "T" mall, an eCommerce platform, will be able to track orders in Luxury Pavilion using Alibaba Cloud's Blockchain technology which is a live example of introducing blockchain technology to shipment tracking.
Blockchain's DLT, or Distributed Ledger Technology, provides excellent security for online database platforms, and this security aspect makes it ideal for deployment in eCommerce.
Also, nearly no security breaches in blockchain-powered networks have been reported. Bitcoin-like currencies function similarly to cash in that they do not necessitate the disclosure of sensitive information by the consumer.
Furthermore, the consumer or client authorizes a transfer from their personal "wallet" to the recipient. As a result, the only differentiating piece of data associated with each user's wallet is a randomly generated unique identity.