5 Reasons Why eCommerce Should Embrace Blockchain Technology in 2020

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Cryptocurrencies have great potential to affect the whole monetary system of the world by offering a new method of transactions with lower fees, improved speed, and higher security. On the other hand, the platform used as a network for cryptocurrencies, the blockchain, might have an even bigger effect on various industries. Blockchain technology represents unique blocks of codes that are transparent and use resources from computers that are active on the network. This system is decentralized and has a unique method of advanced security where a new block of code is chained to a system after each transaction. Also, every transaction is public, but your private data remain visible only to you.

The most popular blockchain is the one that runs the Bitcoin platform, which is the most popular cryptocurrency today. This digital asset plays a key role in the rise in the popularity of cryptocurrencies. If you are interested in trading with Bitcoin and other cryptos, visit bitqt.org. Furthermore, besides the great potential of cryptocurrencies to create a better financial system in the world or to make a big profit by trading with them, blockchain technology has applications in structures of other industries as well. With this technology, online platforms can become much faster and more capable of providing clients with all sorts of services. Moreover, it can also affect the current models of online stores and create a much more transparent ambient, with increased security, better management, more affordable solutions, and more. Here are the main reasons why eCommerce should embrace blockchain technology.

1. Supply Chain Communication

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When you own a store with thousands of products and clients that are ordering goods every day, you have to be sure that every customer is satisfied by getting a delivery in a determined time. Current systems indeed are capable of providing you with those requirements, but it demands a lot of time and effort to monitor the processes.

In that matter, the implementation of blockchain technology into existing systems can improve various factors that lead to better management of deliveries, sales, analyses, which further lead to advanced business strategies and increased revenue in the end. The system can run in the same way like when it is tracing transactions made on the market of cryptocurrencies, but instead of transactions, it will track the whole supply chain with producers, suppliers, buyers, and more.

2. Payments

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One of the main advantages of blockchain-based currencies, when we compare them to traditional banking systems, is that you either don’t have any fees or there are some minor fees on transactions. On the other hand, when you calculate how much money you are losing on the bank fees, it is easy to conclude that replacing that system with blockchain will have a great effect on your business.

The implementation of the crypto market into online stores and other platforms represents a revolution when it comes to convenience and affordability. Therefore, we expect that many companies will start embracing their customers to buy goods with their e-wallets. There is also room for further improvements and higher competition on the market with the ability to offer products at lower prices when you are using cryptocurrencies. The average transaction fees for businesses that are using blockchain are only around 2%.

3. Privacy

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People find it very important to have high privacy when they choose to buy some products in some online stores. However, most people think how current trading platforms, along with most websites, are not capable of proving proper security, which is the main reason why many of them refuse to leave some private data and always need to think twice before they decide to leave their banking account number at some online platform.

On the other side, decentralized systems like Bitcoin and many other blockchain-based assets provides clients with advanced security where the system only stores the address of the transaction without any private data. Every user in the system gets its address, but there is no way for someone to check about your name, address, email account, IP address, and other private information. On the other hand, everyone can check the blockchain addresses and see what people are buying, which can be beneficial for management since you can follow the most recent trends much easier.

4. Reducing Costs

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Finding ways to reduce costs and save more money is part of every business management. When it comes to eCommerce, Return on Investment is a crucial factor that leads to creating a strategy about the determination of which products to sell and which groups of people to target. Therefore, blockchain technology is much more effective than traditional methods when it comes to the reduction of costs related to supply chain, customer support, delivery systems, security, and much more. Moreover, another important factor that can save a lot of money is that you don’t need to spend your funds on monitoring stuff because the system is secure, and there is no way to bypass each part of the process.

5. Returns and Warranties

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It is not a rare case for customers to change their mind and ask for a refund for the product they bought. However, the standard procedure is very slow, and people might wait for more than a week until they get their money back. Also, it is complicated to monitor warranties of your products that are already sold. However, with the implementation of blockchain technology into your online platform, this information will represent only another block of code in the system, which makes it much easier to control. With this feature, clients will get much more satisfied with guaranteed warranties and shorter time for refunds.

Conclusion

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We expect that many businesses will start using this technology because it can make many management processes simplified. You can choose to become a part of the existing system or build your blockchain. However, most online platforms, especially those designed for eCommerce, are still not capable of replacing their standard systems with blockchain. In that matter, companies will have to change their platforms to ensure the proper implementation of this technology.

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