Well, to put it into simple words, the impact of the blockchain will be tremendous and in the right way. The online retailers have considerably transformed how we live. We can order products and services and pay for them just with the click of a button. These online sales are set to reach another milestone by the year 2020. As of now, eCommerce giants like Amazon, eBay, and Alibaba constitute over 50% of the market. The issues that mostly crop up relate to data security, supply chain management, transparency, client satisfaction, and efficiency of management systems. In such a scenario, people are drawn towards the blockchain technology because it can potentially overcome all these issues. Discussed below is the impact of blockchain on the eCommerce industry.
Payments
Though numerous online tools and apps available, none of them are useful in securing and preventing online data frauds that commonly take place. What happens is that the payment modes ask for a substantially high processing fee. Besides that, the retailers also charge a high sales commission. This implies that customers often end up paying more than what needs to be paid for products and services. However, with the use of blockchain technology for payments, making online payments has become easy and secure. There is no need to pay high transaction fee anymore.
Supply chain management
The supply chain management is one of the most crucial factors for the hassle-free functioning of eCommerce retailers. There typically seems to be no other options besides utilizing blockchain technology as far as the supply chain goes. Blockchain analysis shows that the blockchain platforms help to design visuals for the supply chain process, which renders it utterly incorruptible. The information that is placed on the network created by blockchain is not prone to corruption at all. Needless to mention, it offers a transparent process in which the flow of orders is entirely smooth. This boosts the trust of the retailer, which in turn increases sales and profits for the sellers.
Data security
Data security is another significant issue that is adversely impacting the eCommerce industry. How the data is stored is a primary concern for buyers as well as sellers. In case you are not aware, these platforms contain many sources of sensitive data. When clients and retailers register on these sites, that data can get out in the open at any point. This can have many severe implications for the market and also for the online retailer. The centralized servers on which the data is stored are prone to hacking. There are many retailers out there who have suffered due to issues of online piracy. When blockchain technology is used, these threats are minimized by a significant margin. Since the blockchain platforms are decentralized, the risks of hacking and other malware are avoided. The client data is decentralized, which means the codes cannot be hacked.
Transparency
Transparency in the marketplace is one of the most significant issues which is omnipresent in the eCommerce industry. You will come across numerous complaints on forums concerning eCommerce stores. The thing with these eCommerce stores is that they sometimes cut all ties with the merchant, disable their webpage, and offer no explanation about it. This obstructs the communication between sellers and buyers who were earlier using the website in good faith. By making use of blockchain platforms, there is a higher level of privacy in the market. The buyers and sellers are entirely aware of what goes on behind their backs. It helps to carry out transactions through secure mediums between sellers and buyers.
Conclusions
It is safe to assume that the blockchain the impact of blockchain technology on the eCommerce technology will be definite. The eCommerce sector is likely to gain immense benefits from the blockchain technology. The chances are high that eCommerce stores will be able to offer excellent customer experience to both buyers and sellers.
Author Bio
Hi, this is Sujit. I am a blogger and crypto enthusiast. I work for Cryptoknowmics which is known for the best ongoing initial coin offering listing and ongoing initial exchange offering listing. I like to find and share new information across the web. You can follow me on Twitter and Linkedin too.
