eCommerce selling has been around for decades now and the evolution of the industry has been exemplary. Over the years, the concept of online selling has been deeply influenced by technological improvements. The latest among these technologies is blockchain, which spells new opportunities for the industry with its unmatched potential. From the elimination of middlemen to streamlining operations and reducing complexities at all levels, Blockchain e-Commerce has a lot to offer to help businesses resolve their challenges.
Plus, this technology is the foundation of cryptocurrency payments making it even more important. It would not be wrong to say that blockchain is poised to change the way transactions are made. Or get Cryptocurrency Wallet Development Services to set up secure transactions. With this, both traditional brick-and-mortar setups as well as eCommerce businesses should be ready for radical changes. We will be focusing on the impact that blockchain is going to have on eCommerce businesses shortly. But before that, we need to clear some important queries about Blockchain technology. These queries will help you to invest in eCommerce development services effectively.
What is eCommerce Blockchain?
The eCommerce store has a large volume of customer, inventory, and transaction data. These data require proper storage & management for effective results. Blockchain technology addresses this situation by combining transactions in the form of blocks and connecting every block in the form of a chain. Every block is saved on a separate computer thus making it secure, scalable & reliable. If you run a blockchain e-Commerce store try to integrate it with Blockchain technology for quality results.
How are Blockchain transactions verified?
Blockchain transactions have a proper process of verification. Each node in the Blockchain has a complete history of transactions. When a node knows about a new transaction, it performs multiple checks to make sure that the transaction is genuine. The first check is the signature validation if it is not valid the transaction is denied. It is quite impossible to forge the authenticity, as the transaction validation happens on every node. If you are new to Blockchain technology integration, simply get a Blockchain development company having the proper skills & experience for the integration work.
First Things First: Let’s understand the biggest blockchain e-Commerce challenges
Before exploring the potential that blockchain can unleash for the eCommerce industry, there is a need to understand the challenges and pain points it faces. eCommerce is a complex domain and starting here is a challenge in itself. Survival, sustenance, and growth are even more difficult.
Here are some key challenges that sellers in this domain have to face on a day-to-day basis as well as in the long run.
- The eCommerce market has always been highly competitive, with players of all sizes offering similar products and services. Moreover, more and more sellers are joining the bandwagon at a rapid pace. This includes new businesses as well as those transitioning from the brick-and-mortar model to this one. So companies have to embrace smarter business models and technologies to stay in the race, right from setting up exceptional blockchain e-commerce stores to streamlining the processes that are to be carried on as a part of the business.
- Besides the challenge of huge competition, another pain point of the sellers is that the traditional business model has middlemen who take away a hefty share of the earnings during the selling process. For instance, sellers have to pay transaction processing fees to facilitate payments to complete the transactions. You can consult eCommerce mobile app development for your help. These fees cut down the profits of the sellers to a considerable extent and result in lower revenues.
- Consumer data protection is another key concern for these businesses as they need to build the customer’s trust assuring them that their personal and financial details are completely safe. Furthermore, the implementation of data security regulations such as the General Data Protection Regulation (GDPR)has made data security a critical concern for online enterprises. For this reason, sellers usually have to invest heavily in data encryption and other measures to prevent hacking.
- Blockchain e-Commerce selling is a complex process as it involves an array of operations such as supply chain, logistics, payments, and more. Managing these operations and the intermediaries involved is another key challenge for the industry. From ensuring that the inventory is replenished at the right time, to streamlining the shipping and delivery functions, looking after customer relationships, and more, there are a lot of things that merchants need to manage.
As these challenges have been overwhelming the sellers since the very beginning of this mode of selling, they have been looking for one technology that is capable of handling them all. Fortunately, they have found a perfect answer in the blockchain technology. Being a decentralized system, it brings a host of benefits to the eCommerce domain. Let’s explore how this technology is going to change the face of your Magento eCommerce Store.
Ways to integrate blockchain into e-Commerce solutions
Here are some ways to integrate the blockchain with eCommerce stores.
Improve data security
Blockchain e-Commerce offers improved security for your users. The Blockchain is an incredible security to maintain databases. Because it follows DLT technology to secure the user’s data. Also, the blockchain can avoid data breaches in the data centers. So, another it offers to eCommerce stores is secure transactions. Your transaction will be secure from the receiver to the sender’s end. So, if there is any data loss the integration of blockchain can done through blockchain. You can integrate the unique identification to enhance security operations.
Reduce shipping costs
Integrate the latest technology to keep the additional costs at bay. So, you can do real-time tracking, cargo data visibility, and quick receipts. You can get blockchain e-Commerce help to save money on shipping. So, for the blockchain technology to monitor shipments and packages. So, the online retailers can offer seamless tracking of orders. This will ensure transparency with order fulfillment. Also, distributed ledger technology helps businesses to promote a seamless shopping experience.
Transparent supply chains
The integration of Blockchain technology solutions can help you streamline your supply chains. These issues are evident across the industries to hide away the supply chains and inventories. So, to make the process much transparent you need to integrate blockchain technology. So, blockchain technology helps to implement the decentralization of data logs to help with monitoring. And it makes the distributor, retailer, and user aware of the process. Witch blockchain e-Commerce can improve user satisfaction and brand loyalty.
Speedy transaction & checkouts
With blockchain technology, you don’t have to worry about transactions and checkouts. Because the latest technology understands user patience and behavior. So, with blockchain, it will take just a few minutes to make the transaction and checkout a quick process. Blockchain technology can help to manage store clients and satisfy users. Get an eCommerce web development company for your help. So, it increases online shopping popularity for quick checkouts. And blockchain helps to make the transactions even more secure with different users.
Ensure product delivery
It can increase online purchases and deliveries to indicate seamless transparency. So, with blockchain technology solutions you get timely delivery and high engagement. Online buyers look for easy and quick deliveries. So, with blockchain, you can easily track, order, and pay in real time. Blockchain enhances user interactions and streamlines omnichannel engagement. With eCommerce solutions, blockchain can easily implement decentralized data validation.
Accessible receipts & warranties
Warranties and guarantees remain the soft spot for users. So, keeping this in mind blockchain e-Commerce offers accessibility. Although it doesn’t keep guarantees on the products. So, it helps to offer to offer warranties for different items that perfectly serve the prices. The users can focus on their interests same as manufacturers.
Blockchain Will Be The Driving Force For eCommerce In Future
Despite the positive impact that the eCommerce industry has had on the global economy. And things have not been very bright for the sellers in the domain as it has been ridden with challenges since its inception. All these years, it has been looking for a secure technological backbone that can support it well enough. And address the diverse challenges that it faces. Fortunately, Blockchain technology is ready to give it the same today.
Let’s have a perspective of the road ahead as this technology makes its way into this segment:
Enhanced Operational Efficiency
With its decentralized model, Blockchain e-Commerce is capable of streamlining operations and driving efficiency into them. Smart contracts are used to regulate the intermediaries such as logistics and payment processing partners. The technology facilitates integration with various management systems and streamlines the overall workflow as well.
As blockchain provides a series of uneditable recorded data, visualization across the supply chains is enhanced manifold. Get a Digital transformation company in India for more assistance. The feature also provides consumers with complete information on the origin, components, and processing of the products they are purchasing. Blockchain facilitates a decentralized database that gives stores complete ownership of their digital assets including digital storefronts, product photos and videos, and reviews.
Trust and transparency in payments
Despite the vast array of blockchain e-commerce payment solutions, these are far from perfect. Another significant advantage of blockchain e-Commerce is that it brings transparency to transactions, which fosters the trust of the buyers. Every transaction is recorded in a shared ledger and cannot be modified by anyone.
They offer high security, radical visibility, and faster processing speed, along with traceability through the decentralized system. Being country and currency-agnostic, cryptocurrencies will lower the transaction costs for international eCommerce stores. The technology is poised to disrupt the existing payment methods with the advantages that it offers over and above them.
Cost-Effectiveness
Bitcoin is perhaps the most well-known use case for this technology. Blockchain e-Commerce sellers can rely on Bitcoin and a host of other cryptocurrencies to avail of cost-effective digital payment solutions. Since there are no payment processes involved in a crypto transaction, the currency can be accepted by sellers at zero processing fees.
Furthermore, blockchain facilitates the decentralization of marketplaces and the inherent costs go down automatically. This translates into better rates for online retailers while the prices are lower for the customers as the savings are passed to them. Overall, the technology serves cost-effectiveness for both, sellers as well as buyers.
Dependable Data Security
Consumer data of an eCommerce store, whether centralized or stored in the cloud, always remains a vulnerable point as it can easily fall prey to weak encryption. Even the most well-encrypted systems can get hacked, bearing in mind the tips and tricks that modern hackers use these days.
Blockchain technology provides a decentralized ecosystem, which is practically impossible to hack from a single point of entry. Adopting blockchain-based systems will enable sellers to prevent hackers from breaking into them and getting access to sensitive customer information and databases. At the same time, it ensures that the business complies with the data security regulations.
With so many benefits, it is highly important to build an eCommerce store integrated with Blockchain technology. But before we do the conclusion, check some important frequently asked questions.
Conclusion
Seeing the extensive benefits of blockchain e-Commerce, it becomes imperative for businesses to embrace it to achieve expansive growth. Or you can consult Blockchain Enterprise Development Services for more assistance. Not only this, Blockchain can reduce your dependence on paper-based legacy systems and open you up to smarter crypto contracts too.
Having the right technology partner is a must if you are looking to explore this futuristic technology. And to take your eCommerce business to the next level. At OrangeMantra, we build advanced eCommerce solutions that leverage the power of Blockchain to open unlimited opportunities for your business.
Frequently Asked Questions
How does blockchain apply to eCommerce?
eCommerce sellers can use blockchain-powered bitcoins and a variety of other cryptocurrencies to access low-cost digital payment solutions. Blockchain reduces transaction and processing fees by eliminating middlemen and intermediaries from the payment process, allowing retailers to be more cost-effective.
What is the future of blockchain in e-Commerce?
The incorporation of blockchain technology has enormous potential for altering the landscape of online purchasing. Blockchain has the ability to increase customer and merchant trust by improving eCommerce transaction security, transparency, and speed.
How does blockchain affect accessibility and traceability in e-Commerce?
Blockchain technology has proven useful in eCommerce transactions, notably in effective supply chain management. It enables businesses to track and trace products from their origin to the final user, resulting in an immutable and visible audit trail.
How may blockchain benefit digital marketing?
It provides a transparent, secure, and efficient approach to digital marketing by minimizing activities that do not provide value. Blockchain combats click fraud by establishing a trustworthy digital marketing environment, prohibiting ad click manipulation, and ensuring campaign data accuracy.
How is the blockchain monitored?
This is commonly accomplished by utilizing a blockchain explorer, which listens to events and provides a visual representation of the number of transactions received, queued, processed, and finally aggregated into a new block.
