How can Blockchain Solve Ecommerce Problems?

by Kevin Cook| in Printing Business on December 7, 2022 1813 /

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Last Updated on: 29th March 2024, 11:12 pm

Ecommerce has gained immense popularity but comes with significant drawbacks of fraud and data breaching. Therefore, the decentralized structure of blockchain technology can solve almost all transaction-related problems in eCommerce. They are as follows:

1. Shield from customer frauds:

Some customers purchase a product online by paying through their credit card. And they request a chargeback from their respective banks after receiving the product. Therefore, blockchain places a contract in place, and it is impossible for chargeback frauds.

2. Protects data and privacy:

Blockchain is an excellent solution for safeguarding your data & privacy from online hackers. The decentralized nature of blockchain technology helps end-users have the option to hide or disclose their data publicly.

Top 11 Benefits of Using Blockchain in Ecommerce

The 11 benefits of blockchain in eCommerce are the most important benefit for retail commerce. They are as follows:

1. Transparency into the supply chain:

So as it applies to all the members of the supply chain from the manufacturer the distribution channel to the retailer and to the end consumer.

You as a consumer will be able to get answers to the questions such as where are these products and goods coming from. Who made them? How were they made? Did the manufacturer have any labor law violations and as a company you can improve the public image by being proactive.

2. Counterfeit prevention:

The transparency created into your supply chain number is counterfeit prevention. So according to the research done by research and markets in global brand counterfeiting report. In 2018 the amount of total counterfeiting globally has reached about 1.2 trillion dollars in 2017 and is expected to reach 1.8 2 trillion dollars by 2024.

And it is also estimated the losses due to controverting of high-end consumer goods such as clothing textile footwear cosmetics handbags, etc.  They are expected to reach about 98 billion dollars and the losses incurred by the luxury brands are expected to reach about 30.3 billion dollars.

Moreover, all these costs end up getting transferred into the products.  And by the end of the day into you as a consumer so by having blockchain and being preventing counterfeiting.

Furthermore, you will be able to know which product was originally being made by the brand.

Therefore, you don’t end up spending money buying counterfeit products and also companies such as the real who sell second-hand products. As a result, that makes it easier for them to verify the history and of the particular product

Moreover, you can also be very confident that the product you’re buying from them. If they are a part of the blockchain is also original and is not a counterfeit product.

3. Reduce Product Cost:

So benefit number three is reduced product recall cost and also reduce illness and injuries. The companies will be able to recognize the stock of products that is causing any issues and easily identify them.

Since the blockchain is updated in real-time. Parties on the network can identify the point where an unsafe product goes into the supply chain.  Therefore this way it increases efficiencies.

Moreover, the truly affected goods and products would have to be recalled versus doing a more generalized call where the and oblique recalling all the parts number.

4. Consumer data:

The blockchain technology in eCommerce puts consumers in control of your data assets and cuts down the middleman.

Moreover, it maximizes the value of the data for both the companies as well as the consumer’s benefit number.

5. Product Delivery:

The blockchain in eCommerce ensures product delivery. So this way you improve the shipping experience for consumers to monitor item location throughout the shipping process.

With IoT tagging and managing the delivery in real-time.

6. Facilitates cross-border payments:

Blockchain facilitates huge cross-border payments.

So by using blockchain retailers can bypass credit cards and high processing fees that come with it and those savings can potentially be passed on to the consumer.

7. Product Warranty:

Number seven is product warranties. So move product warranties from paper into the cloud via blockchain. It keeps them up to date and easily transferable.

So consumers will be able to maintain a virtual warranty wallet saving retailers and manufacturers administrative work.

8. Smart Contracts:

So benefit 8 for block chaining retail is smart contracts.

The blockchain enables the use of so smart so-called smart contracts. It helps ease the hassles associated with the collection and enforcement under traditional transaction structures.

Therefore, the automatic transactions are triggered only when the conditions are met.

As a result, the influencers can collect payments from brands for their work it makes it easy to manage refunds and of course automated insurance settlements and payouts.

9. Blockchain has no hidden fees:

So benefit number 9 for blockchain is no hidden fees. Forget about the fees and Commission and as the system is decentralized.

There is absolutely no need to pay any intermediaries.

10. Digital in-store integrations:

Benefit number 10 of blockchain is digital and in-store integrations.

To deliver seamless omnichannel interactions facilitated by a decentralized encrypted database of consumer interactions and preferences accessible in real-time.

So consumers will be able to transfer their online purchases.

With the in-store experience and there will be an omnichannel interaction that can be facilitated so it doesn’t look like.

when a consumer goes into a physical store is considered as consumer number A and when their shop online is considered consumer number B and the companies cannot match who is who.

So this way you’ll be able to is perceived by the company as one consumer and give you seamless omnichannel interactions.

11. Manage digital retail coupons:

Lastly, benefit number 11 is managing digital retail coupons.

To improve customer loyalty programs by issuing loyalty coupons on blockchain networks securely and safely.

Final Words:

With the rise of eCommerce, consumers are faced with a plethora of problems. In addition to not being able to touch and feel a product before buying it, consumers have to deal with high shipping costs, high return rates, and other issues.

Blockchain technology solves these problems. For example, blockchain technology allows consumers to have more control over their data and personal information. It also enables them to purchase goods from a store without having to pay high shipping costs. Blockchain technology also makes it easier for a consumer to return an item, which reduces the number of items that are being returned.