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Blockchain, Featured

Role of Blockchain Technology in E-commerce

Blockchain technology undoubtedly helps in faster transactions and is more secure than many contemporary technologies. Record keeping of transactions by Blockchain is more accurate and it tracks the balance of every account. E-commerce sites are also rapidly evolving and there is a high possibility that many may integrate this technology in the future. It is therefore necessary to highlight the positive role of blockchain in e-commerce sites.

Benefits of Blockchain Technology in E-Commerce

Blockchain technology in E-commerce can be widely useful. It can significantly change the way e-commerce enterprises are operating right now. 

Supply Chain Modifications

Supply chain management is of utmost importance in the e-commerce industry. It will not be an exaggeration to say that it is the lifeblood of the industry. However, under the prevalent systems, the supply chain is complicated and costly. Blockchain technology can reduce costs by eliminating or minimizing the massive amount of paperwork involved in shipping, delivery, and essential supplies. Similarly, it can modify existing supply chain structures, to track shipments and verify product information. 

Strengthen Security Systems

The E-commerce industry is heavily dependent on robust security systems because it is vulnerable to frequent cyber-attacks. Moreover, fraudulent transactions are also a major concern that continues to erode confidence among many people. According to a report conducted by PWC in 2020, 47% of companies have suffered from fraud in the last 2 years and it led to a loss of $42 billion. In this context, blockchain technology’s smart contracts, transparency, and traceability features can improve the security of customer databases, and increase security measures during online transactions. It can also enhance CRM systems.

Increase Access To International Customers

International customers, especially those residing in developing countries, often do not have proper banking access. Blockchain along with cryptocurrencies can help underprivileged and unbanked sections of the population to grant access to international customers. Similarly, it helps to provide access to a vast array of retailers. From the perspective of e-commerce retailers, blockchain technology by providing access to newer markets can positively impact their profitability.

Rewards and Referrals

Blockchain technology significantly improves branding and issues rewards points that are redeemable on various websites and partner brands. Moreover, companies can pay influencers in digital tokens and pay content creators which can be converted into their desired currency. 

Fast Hassle-Free Transactions

Blockchain technology is the main technology of crypto exchange platforms. Compared to conventional payment systems, blockchain is much faster because there are no delays in payment processing. This is because, unlike traditional payment systems, it does not require any intermediary. Similarly, purchases are also instantaneous. Therefore, e-commerce retail enterprises can save precious time by fulfilling orders faster for customers.

Easy Access To Warranties and Receipts

Consumers often struggle with warranties while dealing with e-commerce sites. Blockchain can resolve this issue by enabling shops to transfer product warranties from paper documents to the cloud. It can restore confidence among customers by improving a retail company’s validity and transferability.

Also Read- Future of Blockchain Technology in Digital Marketing.

Bottom Line

The e-commerce sector can radically change after incorporating blockchain technology. It can be immensely beneficial to several companies since blockchain removes intermediaries and streamlines the supply chains. In the context of new business entities, blockchain can significantly reduce or eliminate persistent issues and expand their overall presence. Features like superior security, better traceability, and transparency can also improve customer relationships that hold the key to the success of e-commerce enterprises. 

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