You will discover that blockchain is one of the methods that businesses can harness to make substantial gains from their eCommerce investments. This post describes five methods through which blockchain can be used in any eCommerce set up to maximize the returns and viability.
Since its invention in 2008 as a ledger for transacting Bitcoin, blockchain has undergone various developments to provide various solutions to businesses. The diversity of its growth has made blockchain the one modern technology every business is eyeing. But how does this technology power eCommerce businesses to realize their full potential?
1. Cryptocurrency Payment Option
We understand that Bitcoin and other cryptocurrencies are decentralized, and they do not depend on middlemen for transactions. Therefore, they have little to restriction on their use for cross-border transactions. There are many benefits that both the merchant and the customer can gain from cryptocurrency as a method of payment on eCommerce sites.
As a business owner, you would want to serve all customers regardless of their location. Cryptocurrency makes payments easier for people in regions where other payment options are restricted or for people who have no access to credit cards. With the option activated on your eCommerce site, you are sure to reach more customers, and you should focus on how to deliver your products to them.
Another concern people have with online payments involves credit card fraud. Hackers steal people’s financial information and use it to make illegal purchases online. Although various technologies like Stripe can filter fraudulent transactions, they are not always accurate. Disputes do arise, making many businesses lose their merchandise. This phenomenon never happens when paying through cryptocurrency.
As a customer, cryptocurrency comes as a cheaper payment gateway. Apart from facilitating buyers to access goods from merchants abroad, cryptocurrency also removes the middleman in their transactions. A typical payment by credit card has to go through six parties to complete while that of blockchain-powered crypto happens only between two parties. Without a middleman and tax collector, the transaction is cheaper, and you can make more sales because of cryptocurrency.
2. ECommerce Hosting Solutions
Various blockchain technologies are designed differently to offer unique solutions. While so many services use the same blockchain as a payment gateway, some developments are unique and offer specific solutions for their customers. For instance, IBM blockchain focuses on offering a reliable hosting environment for blockchain solutions.
ECommerce businesses can use IBM’s blockchain to power online investments. With its versatile solution, you can set up, manage, operate, scale, and grow your business online. The hosting environment built on blockchain makes business easier and more affordable to run. Since data is decentralized, it becomes impossible for hackers to break in and steal data from any business. And it is hard for such attacks to cause downtime on the server.
Etherium, on the other hand, is a blockchain technology that owns its cryptocurrency (Ether), but it is also a “smart contract” solution for many businesses. Customers find Etherium to be the ideal solution for their business because it allows you to host your personalized blockchain on their network as well. It is like having a VPS you have full control over on the network.
3. Data Security
Businesses are moving digital, very fast. Not only are more people determined in making their applications easier to use with Magento PWA, but they also want to safeguard their business information while making it accessible from any location they may need to do so. Such a move requires more security measures to ensure that everything in their database remains secure while still accessible. Check out what is a company registration number?
With the common cloud computing solutions, it is hard to keep your data safe. You would be required to log in to the network using a username and password. Even with 2-step authentication, it is very hard to keep the hackers away from your eCommerce customer and inventory data. A person can easily break into your network and steal all the information and do anything to ruin your business or steal your or customers’ money. This can happen by either laying hands on your credentials or through brute-forcing.
Blockchain solutions help you to keep all your data secure. Nobody can access your network without permission. All the people assigned access to your data on the cloud must identify themselves with a blockchain address. Without proper identification, the system denies access. Once you have signed in, whatever updates you make remain – they are uneditable, making your data original and authentic.
Since data on a blockchain network is decentralized, you can assign permissions to people who can view the information. In this way, it is easy to keep customer data separate from your inventory and staff. This helps to ensure that customers have full control over their information and choose who they can allow access to, and so, combating spam.
4. Supply Chain Management
The toughest assignment many businesses have is ensuring that they deliver their goods to the customer. Sometimes, the shipping company may delay, causing the customer to get worried about the whereabouts of their purchased products. In an event where products get lost while in transit, the merchant may lose and have to ship another product to cover the customer’s purchase.
Such problems usually arise when you are selling products across borders. But business must continue. With blockchain, it is possible to track the position of the goods you are shipping, making it impossible to lose products while on transit. The solution makes the supply chain transparent and more secure than ordinary shipment solutions.
Blockchain supply management employs sensors that are attached to the product that you are shipping. These sensors communicate through the blockchain network to send information about the location of the product, making trekking much easier for your eCommerce.
Sensors used in this technology need to be verified, and their authenticity established. They should be able to sign and deliver the information without compromise. To avoid data degradation, a dual data storage mechanism is essential, and blockchain should sign and verify all data before deducing everything about the tracking.
5. Business Transparency
Have you ever tried to track your expenses, sales, transactions, and everything money in your business and end up with ambiguous maths? The way you take care of your business transactions can either make it appealing or shady. This makes people raise their eyebrows when they hear about your brand.
Whether you want to keep records for the sake of tax filing or to keep track of your inventory and to prospect upscaling of your business. You need credible financial records to make informed decisions based on the available resources. However, some compromise on data can cause you to work with unrealistic figures. This can cause your business to suffer a lack of reputation.
For every transaction that occurs on the blockchain network, you are sure to have a clear record of untampered information. This is true regardless of whether it is bookkeeping or payment transfers in and out of business. You can be sure that setting up your eCommerce on a blockchain environment will help you to run your business smoothly. Every transaction is traceable and non-editable.
Apart from the accounting perspective, blockchain can make communications a breeze for eCommerce businesses. With this technology, customers can have one-on-one communication with vendors without eavesdropping from third parties – including network administrators.
Communication freedom allows customers to open up to the business and request for products or services that suit their specific needs without the fear of disclosing sensitive information to unintended parties.
Whether you are a startup or an established business, you can employ eCommerce to grow your business. Many customers are already waiting for you online, and with proper positioning. You can grow your customer base and close sales, consequently growing your business.
However, for so many years, eCommerce has suffered at the hands of middle-men and obscure procedures. Making it hard for customers to trust the businesses they interact with. With blockchain’s so many eCommerce solutions, you can be sure to run a transparent and secure environment to grow your investment.