Online retail sales have witnessed an astronomical increase over the recent years. E-commerce today is the engine of the global economy which surely requires a secure backbone and most advanced technology rather than the security-risk prone technologies of yesterday.
According to a recent study, there will be a substantial growth in the number of online shoppers, estimated up to 2 billion by 2020. Despite the positive impact of the industry on the global economy, it is facing challenges since its inception. The momentous in the business will give rise to several pain points like management of the logistics and supply-chain, payment to vendors, customers are more prone to risky transactions as well as the risk of counterfeit products.
Blockchain technology is a perfect answer to all the e-commerce woes bringing a host of benefits like reducing the operational cost, increased customer trust and security, sparking a long-lasting relationship between partners and customers. It is the new buzzword of the year redefining the future of the e-commerce industry with its unmatched potential.
Blockchain technology is based on a decentralized model offering transformative ability to streamline all the processes including supply-chain, logistics, payments, product authenticity trustable configurations of agents’ network. Many giant players in the e-commerce business are already investing heavily in blockchain as they see an opportunity to maintain secure digital records and improve the quality of the stuff that enters the product lifecycle of their brands.
Following are the six major ways blockchain technology can bring the disruption in the industry:
One of the most apparent advantages of blockchain is that it offers transparency in the transactions as they are recorded in a shared ledger which cannot be altered by anyone. This offers faster processing speed, radical visibility, security and traceability through a decentralized system.
Cost-effectiveness and Trust
Based on the blockchain, owners can accept crypto currencies with zero fees. This cost-effectiveness concept promotes unconventional online payment methods and eliminates the middlemen that charge a cut in exchange for security and guarantee of all the transactions. Blockchain provides a similar level of security features. This fosters trust in the customers.
Steering Data Security Overhaul
The Blockchain is a highly secure decentralized digital ledger system that prevents important data of the customers from getting stolen. It allows retailers to create better, frictionless solutions for keeping in touch with their customers. The data in the technology is distributed across every blockchain in the entire network which cannot be modified by anyone. This nature of the decentralized but connected network makes it much more secure.
Ensuring product quality and preventing fraud
The open environment of the blockchain ensures product quality and authenticity at all steps of the supply chain to prevent fraud. It helps to verify the goods before they hit the shelves and reach potential customers.
Improving operational efficiency
Blockchain demonstrates the abilities to streamline the operational processes and driving efficiency. It helps in regulating the intermediaries like logistics, supply chain as well as payment processing partners. The technology integrates well with the management systems.
Solving the problems of direct payments
The most significant use of the blockchain technology is to restructure the payment process into peer-to-peer model offering security and simplicity in mind. It eliminates the risk of third parties and only three entities are involved – buyer, seller, and the marketplace.
From the elimination of the middlemen to streamlining of the processes as well as reducing the complexities of the retail sector at all levels, blockchain technology will play a significant role in shaping this industry for the future. It’s time you embrace this unbeatable technology of the future to reach greater heights!