The blockchain technology has revolutionized the financial transactions in the last few years. 2019 is going to be the year when this technology will influence the e-commerce market to a great extent. The fact that every transaction that you do with cryptocurrencies will be recorded and will remain unchanged is something that most of the online business owners are trying to shift to.
There is no doubt that the e-commerce industry has made lives more comfortable for everyone when it comes to shopping. But there are some drawbacks as well in this almost-perfect industry. Problems like data security, supply chain management, payments, satisfied customers, efficient management systems, and satisfied retailers are on the rise. Experts are of the opinion that there can be one solution to these array of problems; and, that is the introduction of blockchain technology. Here’s how this technology will benefit the e-commerce market in the years to come.
1. Faster transactions
When you buy anything online, you have to go through so many steps before the payment confirmation takes place. What if there is a disruption in the internet connectivity when you are making the payment? Neither the order is booked nor do you get the payment back in time. In fact, traditional payment processing systems involve almost 16 steps and an additional 2 to 6% processing fees for the payment. The number of steps is so high because there are numerous parties involved in the process. This not only makes the entire process complicated but increases the risks of a data breach. That is why you will see customers being duped because their credit card details got compromised.
Blockchain technology has the power to stop these issues once and for all. Since this technology is based on a single network, it will eliminate the need for relying on the other intermediaries. It will also increase the transaction speed, provided you have considerably good internet connectivity. Your transaction will hardly take 5 seconds to complete and that’s the beauty of this technology.
2. Secure payments
Blockchain-based currencies are far more secure than any other online payment method. A recent statistics of 2015 shows that there were more than 100 billion transactions with debit and credit cards that valued over $5.72 trillion. The sad part is, almost 31.8 million citizens became victims of credit card fraud. This is the kind of drawback that the traditional payments still have. The confidential information like credit or debit card number, the CVV number, the account password, and similar other information gets compromised and people are losing money left, right, and center.
On the other hand, if blockchain currencies are used to make the same transactions, there is a sense of security. The cryptocurrencies that you will be using are more like cash than anything else. If you have used mobile wallets, you will understand how easy the transaction process is. You don’t have to provide any sensitive data like CVV number or credit card number. Since every wallet will have a unique code generated for the specific user, it becomes next to impossible to become victims of credit card frauds or online banking frauds.
3. Transparent market
There have been many reports against a top-rated online e-commerce website about their failure to offer transparency in their dealings with the merchants. The sudden disruption in the contact between the seller and the consumer and also disabling the merchant’s page without any explanation started a wildfire among the merchants and the consumers.
Transparency has fast become the “watchword” for blockchain based e-commerce platforms. The idea is to facilitate the online transactions between the seller and the buyer in a transparent manner so that the buyer can know what exactly he/she is paying for. Some of the leaders in the industry have already opted for this technology so that their dealings with the customers are more satisfactory from both ends.
4. Improved order fulfillment
The best part of blockchains influencing the e-commerce platforms is that every block is linked to the previous block. This helps to create a chain of blocks that are not only secure but also transparent. So, when you add an item to your cart and proceed to check out, you have to provide some of the shipping details. Due to the presence of the blockchain technology, it will generate a block that is already secured. Again, when you make the payment, your payment information is generated in another block. This block is linked to the previous one. Finally, when the seller receives these two blocks, he/she will ship the order and a third block will be generated that the order was fulfilled and shipped. This creates a more secure order fulfillment that is much better than the traditional format.
Blockchain will have a massive influence on the e-commerce market in the years to come. It is time to see what other features are added to make the platform a better place for both buyers and sellers.