Blockchain holds the potential to revolutionize e-commerce. But how blockchain changing the e-commerce industry is an interesting tale to see.

Blockchain is slowly making its way into the current culture. Although originally created as a distributed public ledger to support Bitcoin, blockchain has now been accepted in various industries to revolutionize their systems.

blockchain in e-commerce

Blockchain actually holds many possibilities that potentially be applied to various sectors, and one of them is e-commerce. Blockchain technology has the future to transform e-commerce, enabling business owners to electronically and manually store and share digital data, such as product information and customer details, with maximum security. On top of that, blockchain lets sellers and buyers have a seamless experience while online shopping and selling.

 

Blockchain Applications in E-commerce

The adoption of blockchain into e-commerce offers advanced features as listed below:

 

Automation of Contracts

Blockchain technology introduces smart contract, which is a software program that automates operations based on predefined parameters. Smart contract helps to automate activities related to e-commerce. This system seemingly saves money because the seller does not need to hire employees to do the work that the computer system can automate. Furthermore, Smart contracts are capable of making inventory management more accessible, so online sellers can easily track their inventory.

 

Loyalty Programs and Offers

When online sellers use blockchain technology to run a business, they can instantly award loyalty points that customers can redeem once they reach the specified terms and conditions. Besides, these loyalty points could be used across multiple e-commerce platforms, usually in one company that supervises several online shopping sites. The rewards program will later support the e-commerce business in getting more repeat clients while growing engagement metrics.

 

Supply Chain Monitoring

It's no secret that nowadays, the online shopping experience is extremely disappointing. For example, when you buy something on Amazon or eBay, there is no guarantee you will receive the product, get the right product or will be delivered on time. Anyway, owing to the blockchain, the online shopping experience surely improved.

Online retailers can achieve their targeted business goals and you as a shopper, will get the exact product with the help of reliable supply and distribution chains. This is because supply chains allow customers and business owners to monitor which products are on their way and when products will arrive.

This system certainly helps sellers in evaluating products from suppliers. When business owners use blockchain technology to track inventory, they have the option to prohibit suppliers from exchanging packages and ensure that the process is transparent.

 

Influencer Outreach and Compensation

Influencers on social media not only present interesting content but are an important tool in developing e-commerce businesses. Using influencers to promote products, sellers can reach a broader target market.

Blockchain enables influencers today to be paid using digital tokens. In fact, business owners can use crypto wallets to pay influencers with virtual currencies like Bitcoin.

 

Filtering Review

Other than the things mentioned above, sellers are also able to use blockchain technology to validate customer reviews of their goods and services. We know that sometimes, it is hard to prove the authenticity of reviews on the internet. Actually, since reviews can be used to determine a brand's reputation, the use of blockchain to filter organic reviews is very important for sellers.

 

The Benefits of Blockchain Technology

Because of its ability to make online transactions more secure, blockchain is a win-win situation for both sellers and buyers. Apart from its security, blockchain additionally provides many other benefits. What are they?

 

Lower Transaction Costs

When e-commerce companies integrate blockchain into stock control, transaction processing, marketing content, and other management processes, they no longer need to spend money to pay IT workers to manage it. Moreover, when customers pay using Bitcoin or other altcoins, there will be no more admin fees that are usually charged by banks.

 

Vast Consumer Base

More than 100 million people worldwide use crypto. This proves that the system already has a broad consumer base. Customers in third-world countries may be able to shop online anytime and anywhere as long as they have internet access. Sellers and buyers no longer need an intermediary to handle their payments due to the peer-to-peer mechanism that cryptocurrencies offer.

Blockchain makes it easier for sellers located in small countries to enter the consumer base in developed markets which are usually inaccessible as a result of unmatched payment methods in certain regions.

 

Reduced Risk of Fraud

Not only are they struggling to keep up with market competition and increasing customer demand, but most online stores have to face the risk of cyberattacks too, resulting in consumer data leaks and millions of dollars in losses.

Fortunately, blockchain exists as a solution to minimize the risk of fraud. By leveraging distributed ledgers, this technology provides a super-tight level of security to protect consumers' personal information.

 

Protect Customers During a Transaction

One of the most common complaints when shopping online is the fear of not knowing who you are buying from. Is this person or company legit? Should I really trust them with my money? What will they do with my home address information?

These are all concerns that buyers worry about. Thankfully, blockchain makes the e-commerce system simpler, safer, and more trustworthy for both buyers and sellers.

Blockchain may be used to track physical assets like packages you buy online. Companies like Amazon, UPS, and FedEx have embraced this system to speed up and improve their transportation process.

 

EndNote

As blockchain is becoming one of the most inspiring technologies to develop, it is no wonder that e-commerce platforms are looking for ways to adopt it. For that reason, vendors from all over the world flock to e-commerce to commercialize their business.

The increasing use of blockchain proves that this cutting-edge technology is widely trusted as the basis for online payments and sales. With its variety of protocols, blockchain technology has been able to provide benefits to merchants and consumers. Aside from making e-commerce easier to use, it also reduces payment fees and is faster than traditional methods.

Even though it is still relatively new and in the early stages of adaptation, industry experts believe blockchain will grow to become an essential part of the financial and e-commerce ecosystem someday. 

 

Did you know? In addition to getting widely adopted in the e-commerce industry, Blockchain is also being utilized by music companies to solve the low transparency issues within the music industry and give artists a bigger control over their art.