eCommerce has already turned into a big reality. Why wouldn’t it? Everyone wants the large piece of success distributed online. However, the journey of online retail from brick and mortar shops till now is not as simplified as story formed in the pictures.
Indeed, the technology today is weathered for the fathomed future change, but the initial step towards this mammoth revolution is understanding the pain points the challenges involved in eCommerce business.
The major roadblocks that lay ahead in the journey of Blockchain are:
- Is Your Private Data Given In Right Hands? – Data Challenge
With every new technology, privacy will always be a question! eCommerce is not new for this, as the process of buying starts with sharing data.
Today the industry is already plagued because of user’s privacy issues like data breaches and Facebook’s privacy crisis with Cambridge. In the account of these data breaches, the European Union has brought a solution of GDPR privacy law, passed by European Parliament.
Privacy is not the only concern, transparency of data within the supply chain in terms of product price, quality and more is turning into opacity. As in this mirror and smoke world, businesses are perplexed to understand if suppliers are sourcing the products with a hidden and undisclosed fee for their services.
- Is The Search Data Consistent?
When the shopper has not created the account and visits your online store, it gets tough to know who they are and what the preferences are. Well that’s not just only limitation, with a registered account even, the information collected can be of no use. For instance, if a parent is using the profile of their children or vice versa, this can create great inconsistencies.
Consequently, the need of using advanced behavioral marketing and large data sets takes place. However, these data sets are not accurate usually an assumption or bought from companies which may be real or not reliable.
- Online Fraud
Is reality hidden behind fakeness? Well, if the brighter side conveys about consistent growth stories, the shadow under the darkness reveals about the frauds taking place. Fake companies or profiles deceive consumers by posting false reviews, uploading fascinating products and more.
- THE GOOD NEWS
In wake of these breaches, companies that were looking for a secure backbone, a technology that can improve cybersecurity found Blockchain. The technology that stores information in blocks linked and secured using cryptography. Moreover, the decentralized platform enables services with smart contract technology ensuring high security for businesses.
““E-Commerce today is the driving the global economy and therefore it should have the most advanced and secure backbone, instead of the security-risk prone technologies of yesterday,” says our eCommerce team lead.”
- A Protected Environment
The transactions taking place on the decentralized platform are permanently logged. Due to this, the chances of fraud are reduced, as each action of the transaction is traceable back to the origin. The transactions carried out on this decentralized platform have details about the purchase, details regarding the customer, product, and a time-stamp.
Moreover, the data provided is accurate, as the technology decentralizes the entire consumer database. Companies looking for a particular client’s preference can find the information through blocks and the shoppers/users will remain the owner of that encrypted information.
- Verified Transactions
The blocks (known as the transaction) carried out on blockchain is verified and validated across different nodes before being added to the current chain. This technique ensures that transaction is safe, and diminishes the chance of fraudulent use.
- Transparency For Flawless Accountability
The prime thought behind the creation of blockchain was having a transparent network that can be adopted and verified publicly. This turns out to be a great help for eCommerce business as the shoppers are generally looking for unbiased, concrete information be it numbers of qualitative.
- The Digital Footprint Is Here
The platform that traces every transaction using a unique digital ID, isn’t that a benefit to be leveraged to its fullest? This saves enough time and effort done by the Customer Service Associates who are working on non-blockchain based platforms. Well, the feature is not just limited to a customer service executive of an online marketplace but can be used by artists, music producers, record labels and more to make sure that creative content is not duplicated or deleted.
- Distributed Hosting
The most amazing feature that makes blockchain one of the preferred platform is that the hosting is decentralized. The traditional eCommerce businesses work on particular strategically located servers, while blockchain platforms work on a peer-to-peer basis, with integrity checks to dismiss any fraudulent transactions. As the servers are hosted by the user itself, the costs for eCommerce businesses are less than the non-blockchain ones.
- Freedom Of Choice
It is very obvious that when you have all the power and no third parties involved, you can decide about selling a product or not on your own. The competitive pricing gets a better scope without any restrictions of terms and conditions which third parties usually do. Ultimately, you can provide a better customer experience.Wrap Up
Blockchain can be an advantage to both retailers and consumers. The buyers can now purchase products securely with their own track of orders having transparency about prices and other features. Sellers will now have access to more consistent data, and this stands as a boon to provide more personalized shopping experience.
Moreover, blockchain diminishes the risk of frauds in terms of payment and supply chain by reducing churns and chargebacks.
Looking for flawless eCommerce development services? We can help you with any of your requirements.