Blockchain technology makes a natural partner for eCommerce, with the latter depending heavily on the former for smooth transactions. It’s also used in many other ways, including serving as an alternative payment method, improving order fulfillment, securing payments better, allowing faster sales.
But the financial aspects of eCommerce isn’t the only data it can handle for them. It can virtually control the overall user experience as well, improving product searches and selection, and post-sale customer care. And we’re just beginning to scratch the surface!
Using Blockchain in eCommerce
Not all blockchains are created equal. In case of the eCommerce industry, there are four types of blockchains generally used. One of these, Bitcoin, is now accepted as payment by an increasing number of online stores; by adding it as a payment option in your own eCommerce business, you get to pioneer the use of blockchain and open your store to the thriving cryptocurrency market.
Meanwhile, Ethereum is still a viable cryptocurrency framework to consider adding to your eCommerce business, and although it’s not as widely accepted as Bitcoin, it’s undoubtedly the most popular platform when it comes to hosting smart contracts. Plus, it offers many advantages its older rival does not have. IBM, on the other hand, provides a suitable platform for large scale eCommerce blockchains, and customized blockchains help you become more flexible when managing transactions.
Advantages Blockchain Offers in eCommerce
eCommerce companies face many challenges, including competition with rivals, cybersecurity threats, and fluctuations in user expectations, making it as much a battle for survival as it is for profitability. And the best way to meet these ever-growing demands would be by adopting blockchain technology alongside other eCommerce solutions and software like Kansas City Microsoft Dynamics CRM.
For instance, it offers security; blockchain DLT (Distributed Ledger Technology) provides the best protection for online database platforms. To this day, there hasn’t been any verified breach of a significant blockchain backbone framework. Other benefits blockchain offers are better business process integration (because as mentioned above, blockchain is not limited to processing financial data) and cost reduction (because nobody wants to be inefficient when running a business).
Blockchain Applications in eCommerce
As the eCommerce industry continues to grow and adopt new technology, applications for blockchain would unsurprisingly multiply as well. As it is, blockchain can be employed to create smart contracts that will automate some tasks according to pre-programmed rules, automate loyalty rewards software that will dish out excellent incentives to regular customers, and organize product description databases that will make displaying your goods less time-consuming and more cost-efficient.
Other blockchain applications in eCommerce include monitoring supply chain tracking (so you can more effectively watch the products being bought and sold by your business) and providing better inventory control (so you’ll be more able to monitor your online store’s inventory).
Use Blockchain in Your eCommerce Business
With eCommerce fast taking over how merchandisers do business left, right, and center, having blockchain technology as a backbone for your online retail company will give it the edge it needs to stay competitive. So if you haven’t adopted the blockchain in your store yet, now’s the time to do so.