How Blockchain will Transform e-commerce businesses and what are the top advantages of blockchain for e-commerce?

E-commerce has changed the way of traditional buying systems all over the world. And in all aspects, it proves extremely fruitful in covid days when people refuse to go out for shopping.

So, E-commerce became the most evolving industry in the last decade. Now, blockchain technology can bring new variants in the same field for seamless and transparent functionalities of businesses. So, currently, it’s time to sprinkle some tech crunches to innovate the field and to sustain customer interests. Many sectors like Healthcare, Education, Finance, Real estate have already implied this blockchain technology and reap its benefits.

You may wonder that E-commerce can be the most beneficial with blockchain technology? But how? Let’s explore.

1. Supply chain Management

The most significant process for any eCommerce company is supply chain management. Blockchain is extremely useful in managing supply chain tasks. To create a digital identity of products, tracking the products, recordkeeping entries, and secure from forgery activities.

(a)Tracking the supplied goods

Blockchain technology will be extensively useful to trace the product location. Once the products are patched with RFID tags and embedded sensors, blockchain technology helps to find the location of the products specifically. In addition, it helps to identify any anomalies in the system.

(b)Saves cost and time

Apart from the flexibility and seamless supply chain process, it diminishes the processing costs. The extra cost incurred by the company to intermediaries will be removed. Besides, finding anomalies in the system is a difficult and time taking task. Blockchain automatically avoids the odds from the standards and it discloses all the details of the transactions.

2. Payment methods

As of now, the e-commerce industry receives retail payments in cash or with credit or debit cards because It is the customers’ preferred medium of exchange. Blockchain technology accepts payments in cryptocurrencies and this currency provides multiple benefits to customers as well as the owner.

(a)Decentralised Model

The global economy may collapse due to various reasons but cryptocurrencies are not affected by the central economy. It is an individual decentralised medium of exchange without the inclusion of intermediaries.

(b)Upcoming payment system

Crypto payment is an upcoming payment method just like Google pay and PayPal. Shortly, e-commerce companies will generate a new payment option for crypto. So people can pay companies in crypto. These payments are highly secured compared to any traditional method of payment.

3. Facilitates transactions

Blockchain technology facilitates numerous transactions without any hassle. It provides flexibility to manage huge records with transparency daily. Moreover, anyone from anywhere can check any record at any time. See, how flexible the whole system could be for the e-commerce industry.

(a)Transparency in identification

Blockchain is a decentralised model where a unique digital identity is created. Now, The transaction members’ names are not disclosed to anyone. Still, these transactions are visible to all and anyone can check the previous records of transactions. Here, digital identity carries significant value and it is the recognized identity. This aids in securing transactions.

(b)Smart contracts

Blockchain-enabled smart contracts. For instance, The customer can place an order on certain conditions like on specific dates, times, places and others. The e-commerce store will automatically execute the order based on conditions.

(c)Fast transactions

In traditional payment methods, International transactions take a longer duration while payment in crypto occurs within minutes. So, transactions per second (tps) is faster and still, it is on the edge of improvement.

(d)Unhackable system

We can say this is a prominent advantage for the e-commerce industry. As the online transactions take place based on trust. This system saves contracts in a blocked format so even on public network hackers won’t be able to hack the data.

4. Warehouse management

Keeping the warehouse revamped is a significant task for e-commerce companies. To manage the required stock level, to find the specific goods from huge warehouses, which goods are required to be ordered and many more advantages associated with the application of blockchain technology.

5. Crypto wallet safety

Transactions in cryptocurrencies are safer than cash. Anyone can transfer his crypto wallet to the receiver. The only difference is the randomly generated unique identifier attached to the Wallet. So, it provides premium security on a decentralised model. Customers are not required to apply their passwords in front of others. They are just required to use public transaction keys and private transaction keys. There won’t be any chance of stealing customers’ crucial data while dealing with e-commerce companies.

6. Digital identity

It aids in identifying fake reviews. Fake reviews are creating fake impressions of the companies in front of the world. And which promote the companies falsely. To stop this blockchain technology digital identity creates a unique digital identity of a person. So there won’t be any chance of fake reviews as the reviews are stored in a blocked format and the digital identity of a real person is identified. So, there won’t be any chance of fake reviews and people who deliberately want to diminish the company’s reputation.

7. Personalized offers, gifts and discounts

Due to a unique digital identity, blockchain technology helps to offer personalized offers for special customers. Some premium customers need to be taken care of, so it helps to maintain the legitimate customers and inspire them to order again with offers and discounts.

So, by now you have gathered enough knowledge of how blockchain technology can boost the e-commerce industry. For any help, or to make an e-commerce app with blockchain contact us.