Blockchain

E-commerce with Blockchain Redefined

The world is witnessing the enormous change due to advances in every sector, and with this advancements, we can live the life happily and relaxed. Technology and the Internet are the two things which are playing leading role in the development of all other industries. Due to advancements in technology we can produce or create a significant amount of goods and services in short span of time.

Technology made everything more accessible, we can even get the things done by sitting at our home. Technology has influenced significant industries, and online shopping is also one of them.

The recent reports reveal that the e-commerce industry accounts for $ 220 billion. The growth of the E-Commerce has been in incremental mode due to advancements in the Internet. At present era, everyone is having access to the mobiles, PC’s, and Tabs. E-commerce sites are very convenient, and people started using more and more due to various facilities they are providing to the customers.

The customer can shop for their favorite things by merely sitting at home whenever or wherever they feel convenient. Customers can have access to wide variety of goods even if you do not get in a retail shop. It is beneficial for the people who do not find time to go to physical stores and buy the things. The e-commerce industry is growing tremendously and the challenges also increasing, and  One of the significant problems is cross-border trading.

After receiving the orders, the e-commerce sites have to dispatch the goods to the customer point. The customers are may be in different parts of the world. Each country follows its unique system and follows some rules and procedures which makes communication very difficult.  A product has to undergo various human activities which include handwritten bills of lading, telephone calls and faxes to reach a customer. There are more chances of human errors while performing these tasks which may result in some time delivering product to the wrong person or maybe time delay. While shipping there are chances of losing the product and which costs billions of dollars every year. It is mostly set back for the e-commerce industry. If we do not put an end to this,  the customers may lose their trust, and it leads to undergrowth of industry.

It is more critical for seller and buyer to trace the product when it is in transit. The tracing facility of a product provides the information like what it is and where it is. In standardized system products are reweighted, repacked, and relabeled. These all kinds of repetitive tasks on single product leads to cover the cost of the product, Which ultimately transferred on to customers.  Another challenge is currency, due to exchanging activities, third parties charge their commission for rendering money exchange services which are an increased burden for the customer. All these issues make the system very complicated.

The obstacles are due to a nutshell, inefficiency and standardized system all lead to the staggering of e- commerce industry. To be free and to get best results it would be better to opt for blockchain technology.  ParcelX is one of the packaging company which is using blockchain technology to run its transactions.  Blockchain made more natural cross-border delivery of packages without any deviations, and it is cost-effective. A Blockchain is a decentralized system where it can allow a standardized method to work on it.

The following are the different problems faced by the e-commerce industry and how blockchain will help to overcome those issues.

1) payment process

We have seen the changes that blockchain technology has brought in the financial industry and how effective is it now? The international financial transaction system needs a lot more development to be on right standard.

The present e-commerce payment acceptance systems are charging usually higher commission than the actual one.  The fees are mostly ranging from 2- 3 percentage of the total cost of the product you buy in online.

To erase this kind of issues relating to money settlements between e-commerce platforms and customers need a reliable and cost-effective platform. The blockchain is already working with the projects called Request Network and  ECommerce to lower the international e-commerce fees and ensure greater transparency, high security, fast processing are the main aspects of these projects. The ultimate ambition of the blockchain integration would lead to higher customer satisfaction.

2) logistics management system

The Backbone of any industry is its sales, without sales no sector can be able to run for a longer time. We need a proper distribution system to deliver the right product at the right time and a right place. Improper supply chain system can affect the entire business system. The same thing is happening with the modern e-commerce industry. The inappropriate and unregularized system of e-commerce is causing a massive loss to the industry.

The blockchain is the best possible solution to this problem. The blockchain is already working with a project called VeChain which aims to create an incorruptible visualization of network process. It helps in visualizing the operation of the product and speed up the delivery process.

The blockchain supply chain system enables the customer to visualize their production process and position and through which they can have the confidence to receive the product which they brought.

3) Data Management

The data is the most valuable asset in this information age, and e-commerce platforms are acting as home to collect the data from the millions of the customers regularly. E-commerce platforms usually have centralized data management systems to store

Big Data volumes. The centralized data management systems are easy to hack, and the customer’s data will be at vulnerable State.

The data which stored on a centralized system is easy to hack by the online criminals, and we know how criminals are hacks the data.  However, with blockchain encrypted, the decentralized system never allow anyone to take the data stored in different nodes. Stealing the decentralized data of customers is impossible.

4) Genuine marketplace

It is one of the most significant problems faced by the e-commerce platforms. N, no of complaints have already been lodged against big e-commerce giants by retailers. Somme times the online platforms cutting of the merchant page between the seller and customer, and they are leaving the customers with no or little information about it.

Blockchain-based e-commerce platforms like Bitboost, transparency is the “motto.”  Bitboost is the Decentralised marketplace which enables the online transactions transparent between the sellers and buyers.

Conclusion

The e-commerce industry is at rising stage every year it’s been gaining massive popularity due to digitalization and technological improvements. To provide the better quality of products and services in a transparent way every e-commerce platform has to adopt blockchain technology. Decentralised blockchain technology will solve all the problems which are currently facing by the e-commerce platforms. Already most of the online platforms are working to resolve these issues by adopting the blockchain technology.

 

Author info: Vinodh Kumar, postgraduate from the Business Administration background. He is currently working as a content contributor for Mindmajix and loves to write tech related niches. Contact Vinod at vinodkumar.dm1@gmail.com. Socially connect to Vinod at LinkedIn and Twitter

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