There was a time when no one used to believe the true value of cryptocurrencies. Whereas, if you look at the current situation, the Crypto industry has completely changed the finance and business sectors as well. Integrating with different sectors in the market and providing efficient services, blockchain technology has a wide scope to grow in the future.
Not to mention it is already attracting a lot of businesses and certain companies due to the added benefits of using it. And eCommerce industry is one of those sectors that will have a huge effect on initializing blockchain technology in the business model. But how it will be able to manage the enormous amount of user data? how it will work with eCommerce? Let’s dive into details!
E-commerce + Crypto How?
No doubt eCommerce has become an essential part of our lives. Hence, it is difficult for most people to imagine eCommerce directly working with the crytpo industry. A lot of companies are already accepting crytpo as payments and making the transactions more convenient. But increasing the number of payment methods does not mean that eCommerce is working relatively with crypto.
Implementing eCommerce business models on blockchains is now possible. As each transaction is stored securely on the ledger. eCommerce business owners can shift the entire shipping and consumer management work on the preferred blockchain ledger. However, choosing the right blockchain from a business perspective is a rather difficult decision. So it is highly recommended to consult an expert that is familiar with terms like Cryptocurrency tracker.
Major Benefits Of Utilizing Blockchains
Upgrading a system that is already working efficiently requires a lot of work and pre-planning at the same time. In this case, if a company decides to shift to blockchain technology for communicating with its consumers and related services, there should be advantages to do so. Despite the fact that the update can affect the company’s value in the market, it is still worth it. Let’s go through some major benefits of utilizing blockchains for an eCommerce business.
1. Affordable fee structure
We pay a minimum fee every time we place an order via credit card or debit card. No doubt payment gateways make a significant income from these transaction fees while behaving as a flexible checkout option to increase consumer engagement. The extra fees cost a lot when startups place orders in large amounts. Hence, shifting to crypto payments is much more affordable and convenient at the same time.
With platforms like Gemini launching crypto-based credit cards, a lot of people are taking interest in the service. Not to mention you get up to 8% rewards every time you spend using the credit card. In addition, there are no annual fees to keep your service alive, and the transaction fees are going to be comparatively lower when you pay for the orders using cryptocurrencies or crypto credit cards.
2. Secure environment
One of the major benefits of utilizing blockchain technology is that users can buy items without worrying about their data or transaction failures. Due to the fact that well-built blockchains have a higher level of security customized with smart contracts. Hence, even if there’s a problem with the data or the blockchain ledger, the predefined actions will execute according to the commands.
Especially the blockchains that eCommerce platforms should use which are private blockchain networks. The decentralized behavior of the blockchain secures important data like shipping addresses, contact details, and funds within wallets. Even if someone wishes to have unauthorized access to important data, they won’t succeed due to the decentralization.
3. Consumer data privacy
It goes without saying that keeping consumer data confidential is essential for any successful business. Because who doesn’t wish to keep their interests and personal information store privately? Instead of sharing the data with third parties for marketing purposes, any eCommerce company should respect the user’s point of view. While focusing more on implementing the eCommerce marketing automation.
Thankfully the private blockchains are made in a way to authenticate the data for each user. Unlike public blockchains, a private blockchain is a network made for enterprise and business purposes. Making it a lot easier to identify each new user by storing the required information on the blockchain and securing it with multiple layers of securities.
4. Better tracking of shipments
As an eCommerce company owner, what is the most difficult task to do? Obviously, your answer will be to monitor the shipments accurately. While Tracking the user behavior on your site and ensuring whether the goods are delivered on time or not.
Blockchain technology eliminates the requirement of investing in additional resources. Because what most businesses do is, invest a large amount of money for managing the shipments data and backend of the company database. Whereas, the blockchains offer a better inventory and product management service at no extra costs.
5. Accurate trackbacks and fewer scams
Consumers face shipment-related problems quite often, and that is completely normal. Because there are millions of orders and shipments executed every single day, raising potential issues with the shipment of few orders. Hence, the customers can ask for the complete shipping details and order information from the company to sort out the problem.
As the information is stored effectively on the blockchain, accurate trackbacks are possible. Allowing the user to go through vital information regarding the shipment like order date, the origin of the product, shipment due date, and other minor details as well. It also helps in lowering the number of scams from poor suppliers. Because the smart contracts mechanism prevents such issues hassle-free.
We can not neglect the fact that blockchain technology has tons of potential if combined with the eCommerce world. But it has many downsides as well, which require attention from the developers and companies who look forward to using blockchain technology in the future. Not to mention the blockchains are also useful in other crypto business ideas at the same time.
In conclusion, Blockchain technology is a flexible term capable to upgrade the traditional ways of communicating and transacting. Considering the major benefits of implementing eCommerce with crypto, we are yet to admire the possibilities once the concept gains enough positive response. Do share this information with others and don’t forget to mention any suggestions you might have.