Blockchain technology is gradually gaining huge importance in global economy. Ecommerce is amongst the sectors that are gradually increasing the use of blockchain technology in order to facilitate financial transactions.

Interestingly both blockchain and Ecommerce involve financial transactions. The only thing is that blockchain makes transactions safer and faster. It also enables the user to share the digital assets both manually and automatically thereby involving the Ecommerce activities rely on them.

Blockchain technology has the capacity to handle users activities such as processing of payments, product searches and customer care. The commonly used blockchain technologies are Ethereum and Bitcoin. Ethereum provides a technical platform for ecommerce websites to manage their own blockchains. Bitcoin a cryptocurrency led to the establishment of blockchain technology.

BLOCKCHAIN’S IMPACT ON ECOMMERCE

With the advent of Blockchain technologies, e-commerce sites are forming an economic ecosystem that is equally smoother and easier to both consumers and online retailers. Blockchains offer them an effective way of improving customer experience.

Such as:

ü Smart Contracts:

Smart contracts act as computer programs which are capable of automating certain tasks based on rules. Since blockchains are instrumental in storing them, smart contracts can also automate e-commerce-related processes. They can grow an e-commerce enterprise by cutting down on costs needed to hire staff to carry out tasks that computer programs can automate. It can also facilitate inventory management.

ü Easy to track Receipts and Warranties:

When making online purchases, one of the challenges that buyers face is losing paper receipts.Due to the advent of blockchains, buyers and retailers will be able to access receipts and warranty data and validate proof of ownership easily.

ü Paying Content Creators

Content creators play a crucial role in developing e-commerce sites.One of the exciting things that blockchain technology has in store for e-commerce sites in the future involves paying content creators. This means that content curators will earn digital tokens each time they create and post appealing content on these sites. Online retailers would then use digital wallets to pay them. Digital wallets support cryptocurrencies such as Bitcoin and allow users to convert the digital tokens to their preferred currencies.

ü Loyalty Programs and Personal Offers

Adopting blockchain technologies in business, online retailers can easily issue reward points to their clients whenever they hit certain spending thresholds. Online retailers can also make these reward points redeemable across different e-commerce sites. Clients can also benefit from personalized offers and discounts that the retailers offer.

E-commerce enterprises can use such programs to attract more customers and expand their product reach.

ü Supply Chain Monitoring

With a reliable supply chain, online stores can achieve their desired business goals. This is because supply chains enable store operators to know the stocks that are in the pipeline and when they should arrive. Supply chains also help store operators to verify the type of products that vendors are supplying to them. When these operators use blockchain to monitor the supply chain, they can prevent vendors from substituting certain products and generate transparency throughout.

ü Generating Genuine Reviews

There is an increasing dependency of the Online store operators on blockchain technology to verify the reviews of their products or services as there are huge concerns regarding the existence of most product and service reviews found in the websites. The reputation of an enterprise greatly depends on how good its reviews appear becoming the need for e-commerce sites to use blockchain technology in the future.

IN SHORT

Merchandisers from different parts of the world are relying on E-Commerce for their business endeavours. Blockchains are acting as the backbone of online sales and payments.

Blockchain focuses to democratize the economy by making finances and commerce more transparent. Blockchain technology seeks to capture the power of financial institutions thereby allowing people to have control over their transactions.