E-commerce is an ever-growing market that has full growth potential. With the industry’s changing patterns, E-commerce should stay open to upcoming emerging trends to pace up quickly with the constantly changing market and industry.
Blockchain is one such technology that is bringing industries into the future. The impact of blockchain on the E-commerce industry will revolutionize the industry and assist in overcoming various short and long-term challenges.
Upon integrating blockchain, Ecommerce businesses can transform themselves in various ways. Trading on blockchain-based E-commerce platforms adds new dimensions to the industry. It has the tendency to offer a more secure and efficient way to buy and sell products & conduct transactions.
Let’s find the benefits of blockchain in the E-commerce sector:
1. User Data Protection
Data security is a significant consideration for both shoppers and sellers when it comes to online purchasing. However, several high-profile data breaches in recent years have put millions of people’s personal information at risk.
Blockchain technology is one remedy for this issue. Blockchain is a decentralized public ledger that can monitor the movement of assets online. Buyers and sellers can commute data safely without being concerned about identity theft.
Several diverse industries, including e-commerce, have already adopted this technology. Retailers can utilize the blockchain to protect customer data against theft and unauthorized usage.
2. Fraud prevention
Blockchain can be used to follow a product’s journey through the supply chain and confirm its validity. Systems for e-commerce are created to safeguard user data and stop fraud. But even with these systems, fraud can still happen. Fraudulent transactions are one way that fraud can happen in an e-commerce system.
Scammers can set up fraudulent transactions to steal money or merchandise from consumers. Another issue with e-commerce fraud is phishing. In a phishing scam, con artists attempt to get consumers’ personal information, such as login passwords or bank account details. Once the user inputs their login information, their information is sent to thieves for use in fraudulent activities.
3. Faster E-Commerce Checkout
Blockchain technology can manage and store client payment information, accelerating and securing the checkout process.
Online sellers are responding overwhelmingly to e-commerce marketplaces. Millions of products are added every year to satisfy consumer demand. Almost all nations will see an increase in the size of the global online retail market. The popularity of e-commerce and the rising desire for quicker checkout procedures are the main drivers of this increase.
4. Lower Shipping Expenses
Blockchain technology has the ability to trace shipments and packages, which can help the e-commerce industry save money on shipping. Online retailers may benefit financially from this.
Shipping businesses may trace shipments from the point of origin to the point of destination more precisely and effectively with a distributed ledger, which lowers costs for buyers and sellers.
The e-commerce sector could be significantly impacted by this, as one of the biggest barriers to online shopping is the delivery cost. Blockchain technology may potentially be used to develop new e-commerce platforms that do not rely on conventional delivery techniques.
5. Secure And Effective Payment
With blockchain technology, online retailers may benefit from a more secure and effective payment method. Transactions can be tracked and recorded transparently using distributed ledger technology, eliminating the need for third-party verification.
Reducing processing times and improving data accuracy might make it simpler for enterprises to carry out transactions and manage records.
6. Easy Tracking
Earlier E-commerce industry faces problems with tracking, due to which companies tend to use third-party delivery services. The third-party firms ease the process and ensure the products arrive on time and in good shape. However, this whole process appears a little tricky and costly; thus, blockchain is lending a helping hand in solving this problem.
With Blockchain, tracking down packages is a lot easier. E-commerce companies can track their shipments from beginning to end and save time and cost by transforming their businesses into the blockchain.
7. Transparent and Efficient System
Blockchain technology offers transparency in carrying out various E-commerce operations. All the information about customers can be easily accessed without compromising security. It incorporates minimal chances of fraud and identity theft which are quite common in an ordinary E-commerce website.
This transparent and efficient system of blockchain lets the customers buy items easily and in a secure way.
8. Easy Returns and Refunds
Blockchain technology could change how people shop online by making it easier for them to return items and get their money back. At the moment, e-commerce platforms are complicated, and customers have to go through several steps to request for return or refund.
However, blockchain ensures an easy and clear method of refunds and returns. The easy-to-follow process makes it easier for both consumers and businesses to understand and use the feature effectively.
9. Eliminate the need for Middlemen
Since blockchain is decentralized and based on smart contracts, thus, it eliminates the requirement of third parties or middlemen. All the transactions can be carried out between the buyers and sellers directly. Blockchain in E-commerce ensures secure and safe transactions without any central authority.
What is the future of blockchain technology?
The prospect of blockchain technology is immense in the E-commerce industry. It is definitely the next big thing in the upcoming E-commerce industry due to its number of offerings described above.
With blockchain, the way of conducting business and shopping experience among users gets doubled. Blockchain has the power to transform how we exchange value and do transactions with its decentralized network.
Let’s get into some statistics to know the future of blockchain technology:
- In 2024, companies are expected to spend almost $19 billion on blockchain technology.
- The global blockchain technology market is expected to rise from 2022 to 2030 with a CAGR of 85.9%
- 90% of U.S., Canadian and European banks have started exploring blockchain technology.
- The U.S. contributed over 36% of worldwide spending on blockchain technology from 2017 to 2022.
- Of the world’s top 100 publicly traded companies, approximately 81 use blockchain technology.
- 77% of business executives believe it will be disadvantageous for their company if they do not adopt blockchain technology.
These statistics clearly define how bigger is the potential of blockchain technology. Incorporating it in your E-commerce business could bring more profits in terms of eliminating intermediaries and processes, cutting down costs, providing more security, etc.
You can contact any eminent Blockchain E-Commerce Development Company with extensive experience and thorough knowledge of the technology to build a blockchain-based E-commerce platform.
Types of Blockchain used in the E-commerce industry
Ethereum is the most popular used blockchain network that came into existence in 2014. It is a decentralized platform with thousands of computers; therefore, it enables the audience to connect with each other easily. The main aim of Ethereum is to decentralize the internet, making the information accessible to every user and owner along with full security features. Ethereum also has its native currency called “Ether” to carry out transactions and enable trading seamlessly.
Bitcoins are quite popular till now due to their decentralized form of currency. Bitcoin was the first of its kind that eliminated the interference of central entities. Earlier, individuals did transactions only by visiting banks and through intermediaries. However, the advent of bitcoin changed the scenario by enabling the audience to conduct transactions digitally without needing a central authority. Being decentralized, all the records of transactions are kept safe and can be accessed by everyone.
In 2012, Ripple labs developed the Ripple network, which is a blockchain-based network. It offers a payment network solution via RippleNet (a patented payment network) with the motive of sending money over the network with the speed of the message (information). Irrespective of providing peer-to-peer connections, it connects banks, digital assets exchanges, and payment providers to enable real-time payment and minimum transaction fees.
Blockchain is an emerging technology that has the capability of transforming businesses. Based on DLT, it keeps records of every transaction processed in the blockchain network. There is no deny in the fact that it enhances the system operations without compromising the security features.
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