How Will Blockchain Revolutionize the eCommerce Industry?
Reading Time: 5 minutes The eCommerce marketplace has evolved since its inception. From keeping an eye out for trends to evolving with time, the marketplace has indeed transformed with time.
Every single time a new technology has come into existence, the eCommerce industry has adopted it successfully and tuned it to match their own needs.
The eCommerce industry has reinvented itself through mobile app payments, cashless gateways, and experiential solutions.
However, Blockchain is thoroughly redefining the marketplace and transforming the experiences. Here, we will take you through the different ways in which the marketplace can be redefined through the eCommerce solutions, and how it will improve the mobile app development and app solutions.
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Table of Contents
1. Payments within Marketplaces
The first level of transformation will occur within the payment systems for the marketplaces. This is an important part of the eCommerce solution, without which the marketplace cannot thrive and enhance the user’s experience.
Blockchain offers implementation of tech-powered currencies such as bitcoin, ethereum, and ripple. It offers an alternative solution to the digital payment solution, which is not just powerful but also decentralized, making it an excellent opportunity for marketplace businesses.
There is an obvious advantage of using cryptocurrencies over traditional payments.
- It is decentralized and there is no central authority who will be controlling the buyer and the seller. As a result, there is no chance that the third party is involved in the transactions or there is a possibility of manipulation. In fact, government and banking authorities also cannot inflate or devalue the currencies. The Blockchain currency would not collapse owing to socioeconomic or political conditions.
- The technology is based on identity protection, which means the identities of the parties involved in the transaction are not revealed, even though the transactions are quite transparent and visible to all involved.
- When you involve Blockchain into the transactions, you also initiate ease of use and usability within the solution. you don’t even need to include third parties into your solution, which means there are absolute comfort and convenience involved in the solution.
Apart from this, Blockchain facilitates faster, easier, and fraudless transactions, which are all things that need to be considered when you are dealing with eCommerce marketplaces. As a result, you should ideally consider this transaction for effective and transparent transactions and efficient solutions.
The inconvenience caused by fraud can lead to lowering the reputation of marketplaces. As a result, it is important for eCommerce stores to prevent fraud. It is not possible given the vulnerability of the industry and the transactions involved. As a result, it has become important for the industry to adopt Blockchain and improve opportunities.
2. Boost Supply Chain Experiences
The second most important part of the eCommerce industry is supply chain management. From managing the logistics to ensuring that the deliveries happen on time, everything is a pressing concern for marketplaces that deal in on-schedule and high-demand deliveries.
However managing the supply chain effectively needs support and help from all quarters, including logistics distribution. Here, we will talk about how Blockchain can support the supply chain needs posed by the marketplaces, and help them overcome all the challenges efficiently.
- The first use case for the supply chain to be in the form of provenance tracking and record keeping. You can easily seek the information for a particular product using the RFID tags as well as sensors attached to it. this way, you will know the exact time of inception for the product and know whether the expiry date mentioned on the product is right or not. You can track it from manufacturing to distribution, and you will also know if any manipulation was done on the product while it was in transit. Apart from this, you can even check for certain discrepancies within the supply chain.
- The second major aspect where Blockchain can help with the eCommerce supply chain is making it more cost-effective and efficient. A lot of the costs involved in the supply chain are owing to the administrative procedures and the intensive processes. However, these can be tackled if frauds are reduced within the supply chain and the issue of duplication of the data is handled effectively. You should even be able to handle payments and manage the transactions within the marketplaces with cryptocurrency for minimal cost. This way, you will be able to effectively reduce the cost and increase the effectiveness of the supply chain.
- Inventory management is key to maintaining a well defined and channelized supply chain. It is when the inventory is stocked up and you are aware of what inventory is available that you can channelize the distribution on time. Blockchain will ensure that you don’t need extra resources to manage inventory, and your system is updated when a particular item goes out of stock. In fact, the technology will manage and even process the inventory needs as required, so that your backend is defined and the database is constantly updated. This way, there will be minimal time involved in communication, and the supply chain will be seamless.
3. Boosts Marketplace Transparency
In a marketplace that is monitored without Blockchain, you will see that there is less transparency, which has led to many issues. For instance, if a merchant’s page goes missing or there are no contact details of the supplier or there is no way you can get through to a supplier, it leads to experience issues.
However, Blockchain technology aims to solve these issues arising out of a lack of transparency. In fact, they are attempting to increase transparency and make it known to everyone involved why a particular transaction did not occur or why a particular supplier is not involved in the marketplace.
It will connect every consumer with the supplier and make all the manipulations and transformations known to one and all. As a result, you will always be in the know as to why a particular thing happened, or why it got delayed.
This will also reduce the frictions that seem to exist within the marketplaces, and make the transactions more effortless, convenient, and hassle-free.
4. Increases Transaction Security
Blockchain follows the distributed ledger technology, which is why it is one of the safest technologies and quite effective too. The increased security enjoyed by the online platforms can be extended to the eCommerce platform too using Blockchain. In fact, with the Blockchain defined currencies, you won’t be able to use the identity or know the person’s data, which makes transactions cashless, transparent, and secure.
The prevention of data breach and the efficiency of transactions increases the worth of blockchain within the eCommerce marketplaces. In fact, this will also minimize the threats and effectively build trust within the system, thus engaging in better and promising marketplace solutions.
Summing Up
Blockchain will redefine marketplace solutions, and boost the effectiveness of the eCommerce industry. Under this technology, the industry will thrive and become more profitable.
The technology caters to the cashless transaction needs of the marketplace, ensuring better engagement, and reduced frauds. This will help build the reputation of the brand, and increase the consumer’s trust in the marketplace. The transparency will help engage the customers better and involve them in the solutions.
Blockchain at the core of eCommerce solutions will build the brand and increase the ROI for the business.
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Co-Authored With
Happy Patel is a digital marketing executive at Space-O technologies, an android app development company. She loves to write informative articles and share her knowledge through content marketing. She is an avid reader and likes to read about the latest trends and news in the mobile app industry.
