By leveraging transparent, trustworthy, and specific use cases, blockchain has so far been disrupting a number of industries and changing how organizations conduct their daily operations.
The e-Commerce industry, however, never stands static. Global retail e-commerce sales were estimated by Statista to be over 4.9 trillion dollars in 2021. In the subsequent four years, this amount is anticipated to rise by 50%, reaching $7.4 trillion by 2025.
As a result of this quick expansion, dominant companies like Amazon, Alibaba, and eBay have arisen in the market.
What new technology can be developed, then, to help the e-commerce industry run more efficiently?
The answer is blockchain development technology.
Therefore, let’s explore how blockchain can impact the e-Commerce industry.
Blockchain in E-Commerce
A distributed ledger known as a blockchain is one in which data (or blocks) are connected in a chain. The fact that the data is available to and controlled by numerous people makes it dependable because inconsistencies may be quickly found.
Although blockchain has long been associated with cryptocurrencies, more and more companies are starting to see its actual potential. By 2026, the corporate value-add of blockchain will be greater than $360 billion, predicts Gartner.
Key Characteristics of Blockchain Include:
- Blockchain allows transparency and consensus-based trust without the need for a centralised authority.
- The decentralised ecosystem offers a strong foundation that is virtually unhackable.
- Bypassing the necessity for middlemen, it enables consumers to interact directly with businesses or other consumers.
- Blockchain has the potential to transform knowledge into immutable assets, facilitating more precise data management.
- It can save expenditures for enterprises by up to 90%.
E-commerce transaction speed and safety are improved by blockchain technology. Digital assets may be shared and automatically secured using blockchain technology. Additionally, this system can handle user behaviors including online payments, product searches, purchases, and customer assistance.
Blockchain e-commerce systems offer opportunities beyond just making online purchases.
Larger-scale applications for the technology include:
- Supply chain management
- Inventory control
- Marketing techniques and data security
- Better customer experience
- Recognising fake product reviews, etc.
You may learn more about each of these applications in detail in the next sections of the essay.
Key Advantages of Blockchain in E-Commerce
Blockchain technology works well in e-commerce because both buyers and sellers profit from it. The technology is user-friendly, provides straightforward countermeasures to online dangers, and strengthens money security. As we’ll cover letters, it also saves money when processing payments and managing inventory.
1. Saving Money
Companies that engage in e-commerce can simply connect other business operations with inventory control, payment systems, product descriptions, and pictures. They can save money by lowering the cost of maintaining the systems that support these activities and by paying for IT support staff. Additionally, thanks to cryptocurrencies, banks now charge less to process transactions.
2. Increased Safety
Many internet firms find it difficult to stay competitive and increase customer demand. Additionally, they are susceptible to cyber attacks, which can cost them money and consumer data.
Blockchain technology can be used to alleviate these problems for online vendors. Distributed ledger technology provides the highest level of security for e-commerce data warehouses.
3. More Rapid Transactions
Online payments on e-commerce websites can be made rapidly thanks to blockchain technology like Waves. Blockchains now give customers the online flexibility they require, in contrast to conventional payment methods where customers had to wait hours or even days to complete transactions.
4. Enhancements to Business Processes
Blockchains can store more than just transactional data; they can also store smart contracts, which use predefined rules and if-then statements to automate tasks like recurring payments and inventory control.
Consider putting a deposit using a blockchain-based cryptocurrency to purchase a Rolex, for instance. The receipt you get is kept in a digital contract.
If the watch doesn’t arrive by the scheduled delivery date, the blockchain will return your deposit. The retailer ships the watch to you. In contrast, the blockchain delivers the retailer your complete payment if you are successful in purchasing the watch.
Blockchain can store digital records like customer invoices and warranty claims, which makes it more simpler to confirm ownership and the validity of warranties while also minimizing the amount of paper records.
5. Access to Global Consumer
Customers frequently do not receive security systems from banks in developing nations. Blockchain technology and cryptocurrencies allow them to avoid financial middlemen, opening up access to a wider range of e-Commerce sellers. Additionally, by utilizing blockchain and cryptocurrency technology, forward-thinking businesses may access new emerging markets.
6. Rewarding Interactive Customer Experience with Referrals
Blockchain enables businesses to simply create referral programmes, cashback incentives, and prizes that can be used on a variety of websites and affiliate brands. Companies can also compensate influencers or content producers with cryptocurrency that can be converted into their own money later on.
Recent Real Case Studies in Blockchain-Based E-Commerce
Here are a few examples of actual projects that show how blockchain affects e-Commerce in the real world:
Amazon has gone even farther, even though this isn’t a blockchain project, by advising businesses to use Amazon Web Services (AWS) as a BAAS solution with pre-made blockchain templates.
Businesses can now use managed blockchains from AWS built on the well-liked Ethereum and Hyperledger platforms.
Consequently, it’s not hard to picture Amazon embracing cryptocurrencies in their online store, which would be a huge step forward for e-Commerce.
Metafactory is set up as a DAO and offers designers a platform to produce, ship, and distribute their products through the partners of the platform.
Its objective is to eliminate pricing inefficiencies while also uniting designers, businesses, and purchasers into a unified community.
It would be an intriguing social experiment to do MetaFactory given the significance of storytelling in today’s fashion industry.
Although the platform is still in its early stages, if they play their cards right, Shopify may have some competition.
3. Honeywell Aerospace
With more than $1 billion in components, Honeywell Aerospace has an airplane resale division.
When selling refurbished aviation parts online, complex paperwork that takes months to complete must be filed with the FAA.
The process has been dramatically simplified, which has allowed the company to significantly reduce its document management costs.
Blockchain could be a winner given how dependent B2B e-Commerce is on very complex supply chain activities that are also incredibly wasteful.
Conclusion: E-Commerce Has Already Embraced Blockchain Technology!
E-commerce and blockchain technology both offer enticing transparency, stability, and financial advantages. Businesses that can’t offer their customers value run a number of hazards. Despite these benefits, businesses must adopt blockchain because of its special advantages for e-commerce if they want to succeed in the long run.
Blockchain development consulting may be a wonderful choice for suppliers who want to adopt a transparent business strategy and effectively handle customer data. Additionally, it ensures the security of cryptocurrency transactions and lessens the need for paper-based manual processes.
Also Read: The Incredible Diversity of the Telecom Workforce?