How Blockchain Technology Can Transform E-commerce Industry in 2020 ?
Blockchain is the most adaptable technology that every industry inherits for their development. According to the recent statistical report, the global market is expected to have a surge of more than 400% due to blockchain technology by 2021.
In this article, let us look at the use-cases of blockchain in the Ecommerce Industry.
What is eCommerce?
Electronic + commerce = E-commerce .
The process of buying and selling goods/services through online mediums or the internet or an electronic medium is known as "E-commerce". This pays the way for people to do business anytime anywhere with no obstacles in distance and time.
The working of e-commerce business is as same as retail stores, which can be broadly broken down into three main work processes :
1. Placing and Receiving of Orders
The first step of e-commerce business is that consumers place their orders on the eCommerce portal or platform and the respective seller be notified by the placed orders.
2. Processing the Orders
After receiving the order notification, the seller starts processing the details of the order and completes the process and make it ready for delivery.
3. Process of Shipping
Finally, the products are delivered to the consumer on time with the help of logistics components.
These explain the overall working of the e-commerce business processes in a simple manner.
Advantages of eCommerce Business
The main benefits of e-commerce business over offline/retail business includes :
1. Flexibility in Business
2. Easy reach of global audience within a short time.
3. Quick Identification of the target audience.
4. Most cost-effective Compared to conventional business.
5. Gaining new customers with the help of business Visibility in search engines.
Challenges in the Ecommerce Industry
Here listed are the most important pain points of the Survival, sustenance, and growth of the e-commerce industry.
1. Difficulty in Streamlining the Processes
One of the highly competitive business in market is managing E-commerce platform for all kind of businesses . Every second the seller on the internet increases without a gap and there becomes essential to transforming the new and old business into the next level. Thus making those businesses smarter with the implementation of different models and technologies becomes more tedious.
Thus streamlining the processes of all these e-commerce business models is becoming one of the biggest challenges in the e-commerce industry.
2. Presence of Middle Man
In the E-commerce business, every process such as placing orders and processing the payments are made online. This involves the presence of middle man in the process of making payments and they collect a huge amount of share of the earnings during the selling process.
This process of profit-sharing with third parties reduces the seller's overall revenue, which is the most important pain point in the E-commerce industry.
3. Data Theft
Every e-commerce businesses collect their customer's data through an online medium. The protection of those personal data from hackers is a very biggest problem that every e-commerce business faces.
Thus, building a trust assuring e-commerce platform for the global customer is the main goal of every online seller.
4. General Data Protection Regulation (GDPR)
General Data Protection Regulation (GDPR) has made data security a regular concern for all e-commerce enterprises. So, every seller who usually has to spend more and more amount financially in the data encryption and also other activities to prevent the data hacks from hackers.
5. Tedious Operation Maintenance
E-commerce business also involves many operations such as supply chain, manufacturing, logistics, payment and so on which is more complex in managing. Thus, every e-commerce sellers face this challenge of managing the whole process.
Maintaining a proper and transparent streamlining medium that connects the overall operations of the e-commerce industry is a major challenge.
These are the major challenges that are being rolled in the e-commerce industry for more years.
Blockchain In Ecommerce
Blockchain Technology is a versatile technology that can be implemented in the process of e-commerce to diminish the challenges prevailing in the e-commerce industry over the decades.
Blockchain will be an ever-ready technology that aims to be the backbone of the e-commerce industry to face every above-addressed challenge.
E-commerce Blockchain is nothing but an e-commerce platform that incorporates blockchain technology for the effective results of all data processing and management. E-commerce is not easy as you think and it involves a large volume of customers, maintaining their data and inventories and more.
Thus blockchain can form these process in different blocks which are connected by a chain which makes the whole e-commerce process more scalable, reliable, secure and fast as well.
Benefits of Blockchain in Ecommerce
Now, let us look at the core benefits of implementing blockchain technology in the e-commerce industry.
1. A Revamped Payment Method
When Blockchain, decentralized technology is being implemented in e-commerce, the payment transactions are stored on a decentralized ledger which makes payments more secure.
This blockchain technology also introduces another payment method, cryptocurrencies an alternative to traditional currencies.
Some of the most notable advantages of payment methods made in e-commerce when blockchain is used are :
(i) Use of Decentralized Ledger and digital currency
(ii) High Protection over the transaction.
(iii) Possible of Cross-border transactions.
(iv) Reducing the frauds while making payments.
(v) Faster and an easy transaction method.
2. Highly Transparent E-commerce Environment
As every retailer and also e-commerce merchants face the lack of transparency in their business which makes the worst growth of their business in the market. Even Amazon, the greatest e-commerce platform decided to disable a merchant's page without a proper explanation.
With the implementation of blockchain technology, all the fraudulence and wrongdoing activities by any business or merchant can be efficiently monitored as it is a decentralized technology.
Thus blockchain can provide a transparent eCommerce marketplace for easy transaction and delivery of goods.
3. Increased Security
This distributed ledger technology boosts the security of the online database of personal details of consumers as well as the transaction details. When blockchain-powered e-commerce platform increases in rate, the amount of security breaches reduces.
Another notable blockchain offers for eCommerce businesses is the acceptance of digital currency payments.
4. Enhanced Supply Chain Management
Supply chain management in any e-commerce business is a critical part that faces a lot of problems. Thus implementation of blockchain technology in the supply chain management of e-commerce can solve many issues.
This blockchain technology can be utilized to solve many supply chain problems such as record tracking, transaction keeping, easy monitoring and more.
This use of blockchain in the supply chain can
( i ) Reduce Cost
( ii ) Easy Inventory Management
(iii ) Accurate provenance tracking and more.
Look at the below image which lists the possible use-cases of blockchain for eCommerce.
Unlike other technologies, blockchain technology is still in the infancy stage of development and there are many developers who constantly work to make it perfect.A prediction is made by the World Economic Forum that this blockchain technology will boost the world's trade by $1 trillion within the next 10 years.
Ecommerce Marketplace is being revolutionized by the applications of Blockchain and yet to be revolutionized. Thus in the future, blockchain technology will be the best backbone of the global e-commerce marketplace.
If you are an e-commerce merchant who wants to add transparency in your business, consult with our blockchain experts to know the possible way to implement blockchain technology in your e-commerce store. We,Bitdeal - Leading Blockchain Development Company providing world-class blockchain solutions for various industry verticals.
Let us all step together to the blockchain-based e-commerce world !!