The world has changed drastically in recent years because of technology; we can now do everything, including buying products off computer screens without even seeing them physically in person.

The Internet has enabled e-commerce to become a $4.89 trillion global market in 2021, with an expected growth of up 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, which is why it 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.

1. Improved automation & business processes

With blockchain, companies can automate steps in the order verification process. For example, with this technology, 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

2. Easier access to global markets

Blockchain allows businesses to quickly launch new markets by simplifying the process of establishing local banking relationships and payment 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 e-commerce solutions so businesses can increase global sales without making substantial changes to their current systems.

3. Better inventory management and order tracking

Industry leaders with various responsibilities in large value networks such as IBM, Maersk, Carrefour, and Walmart are all looking at how blockchain may improve transparency, reduce 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, which can be very slow and inefficient to process. Blockchain technology could reduce the time it takes for goods to travel from one country to another from days down to mere hours. 

The eCommerce giant Amazon has a blockchain-based authenticator to verify the authenticity of customer items. Walmart has already started using blockchain to track the origin of mangoes as they are transported from Mexico to the United States.

4. Increased security for stores and customers

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, which 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, so 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, and even if they did it would be easy to detect and fix.

5. Decreased processing fees

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 that usually gets involved when making payments online. 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. 

6. 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

7. Verified Reviews

One major problem that plagues ecommerce and hurts customers is fake reviews. People tend to rely on what other buyers have to say, but when those buyers are often paid or bots, which 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.

8. 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!

9. 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

10. 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.  

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