How does blockchain define the future of ecommerce?
The evolution of ecommerce has been phenomenal and very rapid in recent years as opposed to the previous decade. Technological improvements have been the driving force behind the concept of online sales. The newest improvement in the ecommerce field has been blockchain and it has the potential to unlock a new revolutionary digital future. It has been streamlining operations within the company which has, in turn, simplified the business process of the company and there has been a growth in blockchain providers which has also eliminated middlemen.
Employing blockchain in the ecommerce field will lead to new changes as it will eliminate all the drawbacks of the ecommerce field.
The problems faced by ecommerce which can be solved by using blockchain include:-
- Businesses have to ultimately work on being relevant in today’s world. This is because there are several ecommerce platforms which have similar products. To stay at the top, the companies have to look at new technology and business strategies.
- The selling procedure of traditional businessmen includes the presence of middlemen who eat away a major chunk of money during the selling procedure.
- The consumer data which is input to the system of the company has to be protected and secure. The company is usually trusted by the consumer to protect their financial and personal details.
- The process of ecommerce is complex and it involves supply chain, logistics, payments, customer grievances, feedback, and satisfaction. The top blockchain companies in India have the power to automate and solve these problems through distributed ledger systems.
The ecommerce domain has seen its ups and downs even though the ecommerce industry has left a positive impact on the global economy. This is because there are a stagnant number of challenges that are present in the ecommerce industry since it has begun. A secure technology that supports and stabilizes the industry is crucial and blockchain can bring all the challenges of the ecommerce industry on a hold.
- Operational efficiency is enhanced
The streamlining of operations has become easier and possible due to the presence of decentralization of business processes in the blockchain model. The intermediaries in the ecommerce process such as payment processing partners and logistics can be easily managed with the help of smart contacts. Blockchain has the ability to integrate itself with the numerous management teams in the company which easily streamlines the workflow.
- Saving money
Cost effective digital solutions can be created through the use of cryptocurrencies such as bitcoin. The problem of payment services or handling charges is completely eliminated as there is no payment process constituted in a crypto-transaction.
- Transparency is maintained
The trust between the company and the consumer is maintained due to the use of transparent transactions in the blockchain. The distributed ledger system enables tracing of the payment and it also makes the IPO of the company available to everyone. Thus a system of mutual trust is created, which includes radical visibility, faster processing speed, high security, and traceability.
Thus, blockchain can be considered as a boon to the ecommerce industry.