The days of brick-and-mortar grocery stores and retail clothes outlets are long gone. Welcome to the world of e-Commerce, where you may buy anything from veggies to jewelry to clothing or conduct banking transactions, among other things. Amazon, Flipkart, and Shopify are some of the main brands competing in the e-Commerce marketplace zone, where you can buy almost anything.
What could be more relaxing than sitting on your couch and searching for whatever you want, online!
Have you ever wondered what happens behind the scenes at these websites? Although the user experience on these platforms is fluid and fruitful, there are a number of technical and operational flaws that e-Commerce platforms confront that require rapid attention and correction.
In this article, we will discuss the issues that e-Commerce sites encounter, as well as what a Blockchain e-Commerce platform can offer as a solution to these challenges.
Is a Blockchain based e-Commerce platform required?
First and foremost, let us examine the fundamental functions of an e-Commerce website. An e-Commerce platform consists of a massive commodity inventory, a massive consumer base, a massive amount of transactional data connected to the client order, supplier-customer communication, logistics, payment affairs, and so on. While storing and managing such a massive amount of data is critical, it is also a daunting and arduous endeavor.
To begin, the security of millions of e-Commerce platform users’ private and sensitive data is a major priority. We are not unfamiliar with instances of cyber-security difficulties involving personal customer data being hacked or disclosed to third parties and then being utilized for criminal reasons.
There have been numerous instances where data security and integrity have been breached, resulting in disastrous results. As a result, it is critical for e-Commerce websites to have comprehensive control over securing user-sensitive information such as personal data and linked financial data.
A trustworthy e-Commerce platform allows customers to easily exchange their secret bank account information and details without fear of losing this sensitive information to hackers. As a result, these sites must use strong data-encryption software to keep consumers’ sensitive data safe and resistant to cyber attackers.
Another fundamental but critical part of an e-Commerce site is logistics management, also known as Supply Chain Management (SCM). SCM is an essential component of any organization, whether it is agriculture, online food delivery, or an e-Commerce platform.
A product/commodity must travel a long distance from the manufacturer to the wholesaler to the retail seller to the final consumer. There are N obstacles along this entire chain that the product must overcome, such as faulty raw materials, production delays, ineffective vendor communication, payment processing troubles, and many others, before it reaches its final destination, the customer. Furthermore, the presence of illicit agents and middlemen in the process to mint excessive money to smooth the procedure cannot be overlooked. Perhaps the most difficult and eventful stage of the e-Commerce business is SCM.
Managing an efficient payment transaction ledger is critical in any e-Commerce transaction. Registering consumer orders, payment details, tracking the order through the logistics journey, delivering the item to the consumer, product return/refund, and so on are just a few of the many transactions that must be securely recorded in ledgers or account books to maintain a history of every small or large event throughout the process.
Blockchain, with its special characteristics of decentralization, immutability, and transparency, can give the ideal option for e-Commerce enterprises to overcome these technical and operational constraints. Let’s take a look at what a Blockchain-based e-Commerce platform can accomplish to improve operational and technological efficiency.
Benefits of Blockchain-Based E-Commerce Platform
Blockchain is a decentralized, distributed ledger technology that empowers platform users to own and safeguard their data rather than relying on a single authority, preventing data integrity and security breaches.
Data Security
Blockchain, by definition, necessitates advanced cryptographic algorithms for data encryption. Data on a blockchain is always stored in an encrypted format that a person or a software hacker cannot decrypt, decipher, or understand. Furthermore, by adopting the hashing method to create immutability — where data cannot be erased or amended — Blockchain provides a strong network that is nearly unable to be exploited for manipulation by bad individuals. As a result, Blockchain assures that sensitive consumer data on an e-Commerce site is always protected and guarded against potential cyber threats.
Payment Transparency
Because of its immutability and transparency, Blockchain provides a clear view of the history of transactions that occur on an e-Commerce platform. Every small entry from placing an order to processing payments to delivering an item can be recorded and maintained on the Blockchain network, which can help follow the entire route of an order, discover defects/gaps in the process, and so on. Again, Blockchain has the potential to entirely remove issues such as money laundering and payment theft. As a result, Blockchain allows for the maintenance of a transparent and error-free payment ledger book.
Operational Efficiency
How do we deal with the Big Fish — the Supply Chain — and its challenges?
Blockchain is the solution! Tracking any procedure is simple since Blockchain records every event that occurs on the network. Sellers, buyers, and vendors may get accurate information and calculate delays, as well as establish simple contact and understand what is going on in the process. This contributes to the establishment of trust and honesty among all parties, particularly the sellers, buyers, and vendors.
Furthermore, because there is no centralized authority overseeing the process, Blockchain eliminates all intermediaries and unlawful activity.
Digital Payment
Aside from the foregoing, Blockchain can assist in the implementation of alternative payment methods such as cryptocurrencies for transactions rather than relying on fiat and traditional currency payment choices. Using smart contracts and digital payment methods, many incentive systems, discounts, and offers may be implemented to entice customers and make the e-Commerce platform an appealing marketplace!
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A Blockchain based e-Commerce platform is the need of the hour
Although profitable, the e-Commerce industry has always encountered technical and operational challenges since its inception. Blockchain technology has the potential to eliminate these impediments and streamline the process. As a result, it is self-evident that a Blockchain-based e-Commerce platform is essential for encouraging enhanced and dependable online shopping experiences.
Conclusion
It’s important to note that while blockchain offers several advantages, it may not be suitable for all e-commerce use cases. Consider the specific needs of your business and evaluate whether the benefits of blockchain align with your goals before deciding to build a blockchain-based e-commerce platform.
