Technology has disrupted many businesses during the past decade and a half and brought about major shift in how they behave and what customers think about them.
People started to move towards internet-based shopping, services, and communication when web technology was created. This helped them accomplish more in a shorter time.
With time, businesses began to understand the changing needs of their customers and continued to explore the technology to find new ways to make life easier and more secure for them.
Ever since its inception, blockchain has disrupted many sectors. It is expected that eCommerce, which is well-known for its convenience and accessibility, will be transformed into highly secure and easily accessible by blockchain technology.
Blockchain spending worldwide is expected to increase from $1.5Bn in 2018, to $11.7Bn by 2022. To increase reliability for online customers, the retail sector will likely incorporate Blockchain.
According to some estimates, 95% of all purchases will be made via the eCommerce channel by 2040. It is important to make it secure.
This article explains how Blockchain is redefining eCommerce.
Benefits Of Blockchain For E-commerce
1. Fraud Detection
In 2018, there were 1.4M credit card frauds reported. Banks lost nearly $1.48Bn worldwide as a result. It was a large sum and it didn’t stop there. These frauds are most often caused by eCommerce payment gateways. This allows cards to be used and there is no way to tell if the gateway has been compromised.
It is difficult to identify the fraudster and this is something that banks and eCommerce websites have to pay. A chargeback is the most common way to make money online using fraudulent methods.
After receiving the product, the customer may request a refund from the bank. Consumers can also request a chargeback without any fraudulent intent. It is almost like getting a full refund from the bank. The merchant is unaware of this.
This is responsible for almost 80% of online fraud.
If you choose the Blockchain-dominated payment portals with smart contracts, there is no chance of losing your money.
Only certain conditions will be met by banks before they release the refund. If the transaction was completed online, users won’t be able to reverse it immediately.
2. Efficient Inventory Management
Inventory management is the second most common area in which eCommerce businesses fail. Let’s look at a simple example.
A website is showing a product that the user is interested in. The website notifies the user about the unavailability of the product as soon they click to buy it.
This scenario could lead to the customer changing loyalties and the site can potentially lose a sale.
Why does it happen? This is because you don’t know how much inventory you have and aren’t able to manage all products on your website. You may find that the product you offer is not trending anymore or that you are experiencing stock outs.
Blockchain is a great way to manage inventory efficiently. It will maintain all records related to the product, so it can keep track of whether or not the item is still in demand.
A blockchain-based inventory database will allow you to track all items and give you complete visibility into the distribution channel right from distributors to retailers.
You will be able to see if the product has been stocked and if you need to restock it immediately. Or, if you can just let it go. You can track the shipment that is being sent from the distributor.
3. It Makes Database Secure
An eCommerce business requires lots of data. You aren’t just adding customer details and payment methods. You also need to add the details of the supplier, their banking details, and logistics details.
As a result, the database becomes massive and includes huge amounts of data, ranging from business-related data to customer-related information.
This data management includes handling data storage and retrieval in real-time. It is a costly expense for eCommerce businesses.
This is why Blockchain technology is so important. It not only makes database handling more efficient but also saves money.
All your important data will be marked through a private network. This makes it easy and secure.
There will be more transparency to ensure data security and facilitate data migration. The Blockchain-enabled database allows you to scale easily.
4. It Will Allow You To Have More Real Reviews
Sometimes, reviews posted on websites are fake. Many eCommerce companies pay for paid reviews. They ask people to review their products in exchange for a price.
When a product is purchased by a user, they get disappointed as the product is not something that reviewes talked about.
Blockchain-enabled eCommerce companies will make sure that no fake reviews are posted and only genuine reviews will be displayed.
Before posting a review, they will verify that the user has posted it and validate it. Only those who have reviewed the product and have some words to say about it will be allowed to write reviews.
If customers have purchased the product but not yet shared their experiences, eCommerce site owners may offer incentives to encourage them to share their reviews.
These incentives would be sent to their wallets, or something similar.
5. Delivery And Logistics Will Be Simplified
Many eCommerce businesses work hard to streamline their logistics and improve efficiency. They often have problems tracking their shipment or keeping track of the goods they’ve received from the distributor.
This can lead to delays in the retail sector, which can cause dissatisfaction that ultimately ruins the experience.
Blockchain technology can make logistics and delivery more efficient and smarter. All parties involved in logistics and delivery can see information about the goods’ transit using the decentralized technology.
After the shipment leaves its deck, each party can update the information and any other details. The system is smarter and more accessible because it allows real-time tracking, which cannot easily be altered.
6. SImplified Operations
There can be a lot of delays in eCommerce operations. It is a busy place, with many activities, including adding inventory, selling it, preparing invoices and emailing them.
It is common for larger businesses to have a lot of frontend and backend activity. There are also millions of transactions.
Different operations at the enterprise level appear to be closing in milliseconds. This makes it hard for the human eye and leads to inefficiencies.
Blockchain can improve transparency and efficiency in the system. Blockchain-enabled companies can be more efficient and secure by reducing overall costs.
7. Receipts and Warranties
Many eCommerce websites send out their receipts and warranties along with the product. Users find it difficult to manage and maintain these warranties. Even eCommerce sites cannot locate the warranty.
Blockchain technology allows you to save receipts and warranties in secure blocks. This ensures the security of your certificates. They are easily accessible. These details can be accessed by both the customer and the retailer.
Blockchain will revolutionize the eCommerce industry. It will also help retailers improve their game plans. It will create the ideal environment for customer-retailer interaction, and it will increase transparency in the entire system.
Combining other technologies and strategizing effectively will increase your business ROI, and customer engagement. As a result, your business will be smarter and easier to manage. Get started on making your business blockchain-ready.