Blockchain technology, without a doubt, has emerged as the most disruptive technology in the past decade or so. Before blockchain, the world had never seen technology this powerful and the results of blockchain can be seen in the financial industry.
Recently, blockchain technology has been integrated into sectors other than financial services including the energy sector, logistics, supply chain management, gaming, healthcare, and even gambling. All of these and many other sectors are enjoying the benefits of blockchain in a massive way. However, the sector where blockchain can create a huge impact is the ecommerce industry. The ecommerce industry has completely transformed the way we used to shop before. Today, shopping is not only convenient but affordable as well. The variety we get on online stores is exemplary and it is not easy to find in physical shops. According to an estimate, the global online retail market is expected to surpass a record amount of $4.5 billion by 2020.
The large market share is owned by the ecommerce giants in the likes of Alibaba, Amazon, eBay, AliExpress, just to name a few and this is the reason why the problems associated with ecommerce industry have started to emerge. Most of these problems relate to supply chain, data security, payments, management systems, market transparency, and satisfied customers. The way ecommerce industry is progressing, it is not possible for it to address these issues in the blink of an eye and this is the reason why we need to implement a technology that has all the answers to these problems. The only possible solution that seems quite promising is the blockchain technology. If you are wondering how this technology will address the different issues faced by the ecommerce industry and completely transform it in the coming years, here I have highlighted a few points.
Since blockchain technology was originally introduced for the financial sector, payments remain a top contender for this technology that can be greatly improved for the e-commerce sectors. Currently, the payment solutions for the international ecommerce is far from being perfect and a lot of traders, as well as customers, are seeking ways to achieve a greater level of transparency and security in this channel. Even PayPal, Payoneer, and Skrill need some reworking to ensure that the payments are highly secured. Blockchain technology is not only secure but more cost effective as other channels as well. There is no individual transaction fee which makes it a feasible option for making the payments securely. Some blockchain ecommerce projects including ECoinmerce and Request Network have an aim to create a blockchain based marketplace using secure and fast transactions for any ecommerce business model.
A major problem with ecommerce stores is the way data is stored and used. A large number of customers use ecommerce platforms and that means a very large amount of data. This data is collected directly from retailers registered on the platform and the customers shopping from the stores online. This data is stored on centralized servers where it is vulnerable to online scammers and criminals. In the recent past, there have been many cyber attacks and a huge amount of data has been stolen. By implementing blockchain in ecommerce industry, not only cyber attacks can be minimized but precious data can be protected once and for all. The evidence of security of blockchain is quite evident in the financial sector so, you can completely rely on this technology.
Supply Chain Management
Supply Chain Management is by far the most important factor of ecommerce industry. The issues with this sector can only be addressed and solved using blockchain technology. Some blockchain projects like VeChain aspire to create the visualization of the supply chain process. The data validated on the blockchain network cannot be corrupted allowing the ecommerce supply chain management to flourish progressively. The blockchain network can provide an incorruptible and transparent supply chain where the consumers will be able to see the order flow of the products that they buy which will boost the customer trust.
With these solutions followed by a lot more, ecommerce industry will shape up quite nicely using blockchain technology. The ecommerce giants like Amazon, Alibaba, and eBay are already looking to use and implement this technology in their core operations to win the trust of their customers and provide a secure environment to the registered vendors. Small ecommerce stores must also look to make use of this technology to give a massive boost to their rankings and earn substantial amounts of profits as well. The future looks quite bright and we are optimistic that more developments will follow soon making shopping further convenient for customers at large.