Introduction
When it comes to the world of online shopping, cyberattacks, data thefts, stiff competition, and rising user expectations are a harsh reality. A new eCommerce start-up may find it hard to sustain, forget profit from online sales. Blockchain is one such technology that boasts of being a one-stop solution to various troubles of online selling that businesses face. As e-commerce thrives on transactions. Blockchain facilitates these transactions through speed and ease. A distributed ledger that lets digital assets to be saved in secured format to be shared and used later, blockchain can transform the shopping experience for an eCommerce shopper.
Why Blockchain for E-commerce?
All businesses struggle to raise profit margins on their sales, and blockchain can be a saviour when it comes to cost reduction. Using blockchain technology e-commerce businesses can leverage in terms of payment processing, inventory management and even supply chain management, which inturn reduces expenses on staff and maintenance software and hardware systems.
Blockchain works with Distributed ledger technology (DLT) to ensure the most sophisticated and secure ecosystem for data storage. It can help eCommerce businesses avert losses from data theft, which often run in the millions. Since blockchain technology easily integrates with new ecosystems, functions and partners, it helps eCommerce businesses avail novel growth opportunities.
Types of Blockchain for E-commerce
For eCommerce, four popular types of blockchains are commonly used.
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Bitcoin
The very first cryptocurrency ever, bitcoin is widely traded by mainstream businesses. Several eCommerce businesses now accept Bitcoin in terms of payments. Adding Bitcoin as one of the payment options on your eCommerce store makes it viable for the huge cryptocurrency market to access it.
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Ethereum
Ethereum is a cryptocurrency framework that is hosted on the Ethereum network. This network also hosts multiple other cryptocurrencies. This particular blockchain is a popular choice for eCommerce businesses interested in smart contracts.
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IBM
While IBM doesn’t by itself offer any cryptocurrency, it does offer a suitable platform for larger eCommerce blockchains.
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Custom
If you are looking for flexible blockchain solutions, you can hire open cart developer or hire Magento developer, depending on the platform you use. A professional eCommerce expert can be cost-effective in the long run and help you leverage all the benefits of blockchain technology.
How Can Ecommerce Businesses Use Blockchain?
As the eCommerce world is transitioning and adapting to blockchain trends, here are fruitful ways businesses can integrate it into their systems:
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Supply Chain Management
As the eCommerce world is transitioning and adapting to blockchain trends, here are fruitful ways businesses can integrate it into their systems:
Supply Chain Management
Ecommerce stores sustain solely on reliable supply chains. Stockists need to know the movement of the stock through the pipeline and predict the availability of the finished products while ensuring quality produce.
Blockchain helps e-commerce ventures to steer clear of supply chain fraud by ensuring no products are substituted without notice, guaranteeing complete transparency.
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Database Management
All online shoppers count on detailed images and product descriptions to make purchases through eCommerce stores. However, online businesses incur heavy expenses to make good quality images and descriptions available to their customers.
Businesses can seek help from an eCommerce expert to use blockchain technology to facilitate information sharing between suppliers, online portals and content creators and thus ease data management expenses.
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Inventory Management
Continuous and efficient inventory management defines how good an eCommerce business is with serving its customers. Inventory management allows a realistic picture of items that can be sold currently and shortly.
Hire Magento developer to help you manage inventory items, decrement them when necessary. This can help you order replacement stock in time and serve customers better. Automation with blockchain ensures minimal chances of items going out of stock and also prevents overstocking of produce.
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Smart Contracts
Smart contracts are compact computer programs. They are easily stored on the blockchain, in a secure manner. They help automate tasks, complying with preset rules.Blockchain-powered smart contracts streamline eCommerce related processes automatically and create scope for staff to focus on core functions and customer relations management. For example, it’s simple to automate smart contracts with loyalty reward programs and personalised discount offers etc.
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Secure Ecosystem
Distributed ledger technology that makes the foundation of blockchain works towards securing payments. Blockchain shoppers can pay directly instead of paying to a bank or a financial institution or other similar intermediaries. With on-point monitoring of all financial transactions, blockchain rules out any chances of financial scams.
In the End
Ecommerce has seen an unprecedented surge recently, especially given the socially distant lifestyle that the year 2020 brought upon us. It would not be wrong to claim that blockchain is slowly becoming the backbone of the eCommerce industry. In fact, the way it is growing blockchain will soon become the defacto technology for financial transactions world over, given the convenience it offers.
Blockchain can be the missing piece for your eCommerce puzzle. As an online business aiming towards success, you must hire opencart developer or hire Magento developer to integrate blockchain into your eCommerce portal. A professional developer can help you configure your business needs precisely and use blockchain to meet those missing links. A highly secure, decentralised ledger system like blockchain can be an indispensable resource for eCommerce businesses looking to offer state-of-the-art shopping experience to its customers.
Want to know if blockchain technology can benefit your eCommerce start-up? Sign up for a free consultation with our eCommerce expert today.
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