The most exciting aspect of blockchain technology in e-commerce is that it benefits both retailers and buyers. It provides simple solutions to cyber threats and financial security issues. It also saves money on inventory management and payment processing, as explained further below.
Cost Cutting
E-commerce businesses can easily combine inventory management, payment processing, product descriptions, and images with other business activities using blockchains. In exchange, they save money on maintaining the systems that facilitate these activities and on hiring IT support staff to maintain the systems. Cryptocurrencies like Bitcoin reduce the fees that banks charge for facilitating transactions.
Transactions are completed quickly.
Customers of e-commerce sites can make quick online payments using blockchain technologies such as Waves. Unlike in the past, when buyers had to wait several hours or even days to make payments, blockchains now provide them with the convenience they require when shopping online. In this case, after making the necessary payments, they can have their products shipped.
Cybersecurity Risks
Most online retailers face challenges in keeping up with their competitors and rising customer expectations. Aside from these challenges, they face the risk of losing customer data and millions of dollars due to cyber attacks. Blockchain technology is ideal for addressing these issues that online retailers face. In the form of distributed ledgers, the technology provides the highest level of security for e-commerce database management systems.
Easy Access to Receipts and Warranties
Blockchain technology also helps store receipts and warranties, removing the risk of losing them and allowing customers to retrieve them anytime and prove warranty coverage. Customers, retailers, and manufacturers can all access the data and easily validate proof of ownership.
Create Authentic Reviews
It is simple to generate genuine product and service reviews for innovative blockchain applications. At the moment, we can only assume that the reviews we see on the internet are genuine. In reality, many of these reviews are written by the sellers as a form of marketing. Blockchain technology can aid in the verification of reviews.
Retailer Loyalty Programs and Personal Offers
It would be fantastic if customers could share their shopping history with a variety of supermarket brands and benefit from personalized offers, or if they could use loyalty programs across retailers to choose where to redeem their rewards. Blockchain technology can accomplish this by storing the customer’s purchase history and points and distributing them to the companies of the customer’s choosing.
Together, blockchain and e-commerce can open up a slew of new business opportunities that promote trust, transparency, and cost savings. It does, however, pose risks to organizations that are unable to provide value to their customers. If a company wants to stay relevant in the future, now is the time to investigate all of the possibilities that blockchain has to offer the e-commerce industry.