The world of eCommerce continues to grow rapidly, with multiple online stores coming up every day. The technology provides individuals with an interface where they can purchase goods and services at the comfort of their living rooms. Since its initialization, a significant number of physical businesses shifted their services online in a bid to attract more clients. That is among the reasons why experts are projecting that the market value of the eCommerce industry will reach a whopping $6.4 trillion by the year 2023.
At the moment, various eCommerce trends are cropping up in a bid to enhance user experience. For instance, you can now use an eCommerce mobile app to access your favorite online store, therefore, easing the whole process. Another trend making headlines is the incorporation of blockchain as a method of payment. The merging of the two will see the interruption of the online trading platform significantly. But before looking at ways blockchain technology will revolutionize eCommerce, it is essential to answer the question, what is blockchain?
Blockchain is a distributed ledger that is unalterable and, therefore, secure. Many people consider it to be the most assuring and transparent way of trading online. Now that you understand what blockchain is, here are seven ways, it is revolutionizing the eCommerce industry.
1. It Is an Efficient Mode of Payment
The biggest problem facing online store owners at the moment is the lack of an efficient payment method. The existing methods are not only slow but also very costly and, therefore, inefficient. Blockchain, on the other hand, is fast. The payments reflect within the shortest time, and that makes it more reliable. The transaction fees are also less compared to various e-wallets. That makes it an incredible method of payment.
2. It Is Decentralizing the eCommerce Industry
Whenever you initiate payments using various e-wallets, your data usually remains online, particularly in the merchant’s database. That means the store owner can access it and alter the details or manipulate it in whatever way he or she deems fit. That is, however, not the same with cryptocurrencies. The technology allows every node to access the information. By doing so, it becomes hard for the store owner to make any changes. The creation of the rules also goes from a single individual to the community.
3. Product Tracking Is Becoming Easy
In the modern world, tracking a product by both the seller and the buyer is very crucial. That is because both parties get to know which department is dragging the supply process. With blockchain, store owners can keep track of the complete supply chain. That is from product conception to completion. To do so, they use tracking codes, which makes it easy to identify where it is on the supply chain. Buyers, on the other hand, get to keep up with the product delivery process.
4. It Is Making Transactions Secure
One of the main ways the distributed ledger is transforming eCommerce is by making transactions secure. The payment method not only masks the buyer’s payment information but also prevents any possible breaches. That is because the technology uses in-depth encryptions to make sure end to end transmission of payment is fully secure. Both parties can, therefore, transact freely without worrying about any existing loopholes. You should thus consider every risk eliminated.
5. The Technology Is Making Inventory Management Effortless
Every merchant has a distinct inventory management technique. It is, however, true that none of the methods make record keeping easier. That is because you can easily miss a few products and end up with false information. Thanks to distributed ledger technology, managing inventories just became easier. That is because you can now track a product and see whether it is in your stock list or not. The inclusion of the tracker code, on the other hand, notifies you as soon as an item leaves the warehouse.
6. eCommerce Businesses Are Becoming Paperless Due to Blockchain Technology
There are so many benefits of using blockchains with eCommerce. For instance, merchants get to go paperless, therefore, easing business management processes. What happens is that every transaction remains online, including shipping approvals. In case there is any data involved, all you have to do is place it on the blockchain. That is either manually or automatically. Once that happens, it becomes easy to compile the information online and initiate various processes with the help of blockchain tools. Otherwise, the process would be lengthy and costly to perform.
7. Blockchain Is Facilitating Customer Loyalty
As mentioned before, blockchain is one of the most transparent modes of payment. That is because everyone has access to data and not just the merchant. It means sellers can quickly gain customer loyalty, especially if you keep data consistent. The information works even better when dealing with products and services whose prices are high. You can also use the blockchain system to display product certifications and not just item prices. That is how you end up achieving customer loyalty.
The above information contains details of how blockchain is revolutionizing the eCommerce sector. The technology is not only streamlining the process of buying and selling goods online but also making it secure. At the moment, merchants can track items and efficiently manage the supply chain. They can also use technology to reduce operating costs and improve customer loyalty. The customers, on the other hand, also get to benefit by quickly accessing data and keeping track of their shipment. It is also important to note that the more people incorporate blockchain in their eCommerce platforms, the more the benefits they will experience.