The world has changed drastically in recent years thanks to ecommerce. We now do our shopping online without ever seeing the products in person.
The Internet has enabled e-commerce to become a $4.89 trillion global market in 2021. It’s expected to grow to 639tn US dollars by 2024!
Blockchain is disrupting several industries, from finance to ecommerce. Distributed ledger technology has proven itself as a safe and secure way of storing digital data. This comes as no surprise that eCommerce could benefit from integrating such technology.
Here are a few examples of how ecommerce can benefit from Blockchain Technology.
Improved automation & business processes
With blockchain, companies can automate steps in the order verification process. For example, sellers can automatically generate purchase orders based on certain-set conditions and receive a confirmation when the buyer receives, reviews, and approves it. This reduces time and costs in verifying orders and carrying out business processes
Easier access to global markets
Blockchain helps businesses enter new markets by simplifying payment processes and gateways across borders. It also allows buyers to make more secure payments in additional currencies, which can generate demand in new markets. Moreover, blockchain integrates with existing ecommerce solutions. Businesses can increase global sales without making substantial changes to their current systems.
Better inventory management and order tracking for Ecommerce Stores
Industry leaders like IBM, Maersk, Carrefour, and Walmart are looking at how blockchain may improve transparency, reduce the time to process transactions, track logistics globally and eliminate paperwork in an industry that is rife with fraud and suffers from significant inefficiencies.
This is where the technology really starts to show its benefits for eCommerce. When products need to be shipped from one place to another they’re often accompanied by a lengthy paper trail. Blockchain could reduce the time it takes for goods to travel from one country to another.
The eCommerce giant Amazon has a blockchain-based authenticator to verify the authenticity of customer items. And Walmart has already started using blockchain to track the origin of products.
Increased security for stores and customers for Ecommerce Stores
Blockchain uses advanced cryptography to protect digital records and identity information against hacking or tampering. This is especially useful for e-commerce websites that require credit card information and other sensitive data. With blockchain, customers’ information stays private while businesses can rest assured their network is secure.
The parties on the blockchain must reach a consensus before a transaction is considered complete. This makes it a far more secure and efficient mechanism for e-commerce than existing payment gateways. Blockchain’s immutable ledger means that the data stored within the network is public and verifiable by all parties involved. No one can claim they didn’t receive the product once it’s been shipped off. The opportunity for hackers to successfully launch a blockchain attack is very slim. Even if they did it would be easy to detect and fix.
Decreased processing fees for Ecommerce Stores
Blockchain acts as an efficient alternative to existing systems by substantially reducing costs related to database management, verification and validation, payment processing, and reconciliation. As more companies adopt blockchain, they can expect to see significant savings compared with their current solutions.
Blockchain technology reduces transaction fees by cutting out the middleman. This will benefit both individuals and businesses, as they can save time and money on executing their e-commerce strategies. Simply put, blockchain offers the opportunity to spend less on transaction fees and other administrative costs.
More seamless, efficient transactions
E-commerce businesses spend significant resources reconciling payments between buyers and sellers across multiple networks; but with blockchain, this is no longer necessary as the technology provides a secure digital ledger that records all transactions transparently and immutably. While blockchain does not eliminate the need for manual processes, it significantly reduces the resources that e-commerce businesses dedicate to processing transactions
One major problem that plagues ecommerce and hurts customers is fake reviews. People tend to rely on what other buyers have to say. But often, many of those buyers are paid or bots. This can trick people into buying poor products.
Blockchain has the ability to create an authentic and verifiable trail for every website purchase, ensuring that buyers can rest assured they’re getting what’s advertised.
Ecommerce Order Transparency
How do you know if a business is ethical? The transparency of their records can help in this decision. Blockchain provides an open history on every purchase, which gives customers more confidence that they’re making the right choice when buying from an e-com store!
Verifying the origin of goods and raw materials
More often than not, popular retailers like Nike, Zara, H&M, and Adidas are linked to child labor scandals. Since blockchain can be used to track and verify the origin of goods, it’s possible to help prevent this prevalent issue that 260 million children go through.
More enticing rewards and referrals programs
E-commerce businesses gain the ability to easily provide rewards and referral programs for customers by leveraging blockchain’s immutable ledger and smart contracts. These enable businesses to reward customers with points that can be redeemed for discounts, cash, and other benefits – and these programs can also be completed faster than traditional models because there is no need for third-party verification
The Future of E-commerce is Blockchain
It will be interesting to witness the ongoing evolution of blockchain and how it could shape up ecommerce and improve the user shopping experience. From small online businesses all the way up to big retailers, there are endless possibilities with blockchain that should excite everyone involved in retail.
Just as the internet revolutionized how people do business, blockchain technology will change buying and selling forever from the internet of information to the internet of value.
We are dedicated to empowering people’s freedom to create greater outcomes, giving them control over how they own and collaborate worldwide. The core foundation for Peerplays success in 2023 relies primarily on the release and promotion of mechanisms incorporating decentralized ID, gamification, and ‘handshake’ like onboarding that is easily accessible to people who use smartphones. At Peerplays, we are on a mission to revolutionize the world of blockchain technology and empower individuals with the freedom to take control of their digital lives. To achieve this ambitious goal, we are constantly on the lookout for the most talented individuals who share our passion for innovation and our commitment to decentralization. If you believe in the transformative potential of blockchain technology and are eager to contribute your skills and expertise to this groundbreaking project, we want to hear from you.