ECommerce is a central part of the business. It plays a major role in building economies, both locally and internationally. Over the years, eCommerce has evolved to make business more customer-friendly, effective, and profitable for investors. And now, with the development of Blockchain, eCommerce can grow to greater heights.
This article discusses seven ways in which Blockchain has come to change eCommerce for both business owners and customers. Regardless of whether you are a supplier or manufacturer, you need to start exploring Blockchain.
1. Introduction of a Versatile Payment Method
For a long time, eCommerce has employed unreliable payment options to manage their businesses. It is either they have to pay huge transaction fees or risk business blacklisting when receiving large amounts of money or payments from a “high risk” region. This limitation has grounded many investors, and they cannot sell products abroad when banks limit the amount of money one can transfer to other countries.
With Blockchain, things are a lot easier and open. Using cryptocurrency as a payment option breaks the border barriers that exist between countries or regions. Customers can also pay any amount of money for their goods without worrying about the funds going through a “hold” by the payment processor. Payments on the Blockchain network allow customers to decide how much they are willing to pay for the transaction and thus the time it will take to complete the payment.
2. Security of Customer Data
eCommerce websites store customer data on their servers, either in raw form on a disk or as a database. Both methods are vulnerable to hacking. When you consider the giant eCommerce platforms with vendors and customers from all over the world, you can imagine the vast amount of data waiting to be compromised, including customer credit card information.
With Blockchain technology, systems become decentralized, and data moves into “blocks” that form “chains” once they go through verification. This kind of cryptography makes it hard for hackers to break into eCommerce systems to steal customer data when they shop on your eCommerce mobile app.
3. Opens Business Communication
Customers need open communication with vendors when they transact on eCommerce platforms. Most online platforms do not let customers communicate with their suppliers on their eCommerce site before making orders. This restriction makes transactions look a bit obscure, and customers always back off due to insecurities.
Blockchain technology makes communication easier. Direct channels enable customers and sellers to have uninterrupted conversations, making it easier and confidential. This freedom creates confidence, and customers can negotiate whatever products they need without breaking any communication “policies” on the eCommerce system.
4. It Speeds Up Business Transactions
Online fund transactions are not an easy process. This is especially when paying with your credit card. Although some credit card payments can be completed within a few seconds, some can take more than a week. These delays cause inconveniences with online transactions.
Blockchain helps to solve the problem with business delays. With cryptocurrency, people pay directly from their e-wallets to the business owner. Regardless of the amount, the payment goes through in a few minutes. This helps businesses to close their deals faster and conveniently.
5. Blockchain Resurrects Trust in Business
In recent years, eCommerce has suffered from spam and fake reviews. While some people receive incentives to talk good about other businesses, some damage people’s reputation by sharing negative reviews. Either way, fake reviews help to promote phony businesses while killing genuine eCommerce startups.
But thanks to Blockchain in eCommerce, you cannot create a fake account for posting a review on some products. The network will verify your wallet and authenticate you before you post anything. And you must have purchased the product without incentives. The review also has to go through a network verification process. After the verification, reviewers cannot edit the information. This improves authenticity and restores fairness in the eCommerce industry.
6. Lower Cost of Running Businesses
eCommerce owners spend lots of money to implement the security necessary to safeguard information and process payments. The costs are extreme, especially for businesses with a large number of customers and inventory. The more data you have to secure, the more you pay. Payment processors also take a percentage from your earnings to facilitate the service. At the end of the day, most of your income goes to third parties and slows business growth.
With a Blockchain platform, payments and data are protected. You do not need to pay recurring fees to continue using third party services. However, you would have to spend an upfront investment to hire Blockchain developers to create the platform for you. You may also have to pay the developer once in a while to maintain the platform or improve it. But you would save a lot of money from recurring charges. You can easily upscale your business or offer discounts for your customers.
7. Transparency in Supply Chain
Tracking of goods is essential in eCommerce. When you purchase a product from a company, you want to know when they will ship it, the method of shipping, the duration it will take, and where you could collect the item. Sometimes things happen in an obscure manner, and many items get lost in the process. This happens because some purchases are untraceable or unverifiable.
Blockchain for eCommerce helps businesses to make every step transparent. Customers can track their purchases, and the verification is stored on the Blockchain network. Since Blockchain does not allow altering of information in the blocks, you can be confident of transactions. Customers trust businesses that are transparent with their supply chain because they are sure of receiving their purchases.
eCommerce is a critical industry. It can bring an overwhelming experience to both the supplier and the customer. Many businesses have lost money due to fraud and customers have lost trust and money because of information theft. Blockchain protects both the seller and the buyer, making the business solid and more reliable. Building trust can see many businesses make higher profits from their eCommerce investments.