Blockchain is a distributed ledger. Combining transactions results in a block. Each of these blocks is linked to the block before and after it, creating a chain. Since the Blockchain data is stored on multiple computers worldwide, there is no single central authority that controls the data. This makes Blockchain secure, trusted, and for the most part, unchangeable. Here is how adopting Blockchain can provide immediate benefits to your eCommerce business.
Cryptocurrencies use Blockchain to record transactions. This way, cryptocurrencies inherit the same secure transaction benefits associated with Blockchain without involving a middleman, a bank, for example, many traditional currencies and transactions require. This decreases the cost of transportation, making cryptocurrencies generally cheaper for both merchants and consumers.
Many online merchants, physical venues, and consumers have already adopted Bitcoin and other cryptocurrencies, making accepting cryptocurrencies as a payment method easier. Like Expedia, Overstock, Microsoft, and numerous Shopify store owners and other Shopify alternatives, large retailers accept Bitcoin opening the door to many more customers. Using Bitcoin merchants brings you:
- Low or no processing fees
- No chargebacks
- International usage
- Quick setup
To accept cryptocurrencies, all you need to do is set up an account with one of the Bitcoin processors and integrate it into your eCommerce site. The processor has a role in creating a cryptocurrency wallet to hold your funds and help you convert your cryptocurrency to your local currency.
The supply chain is the most important aspect of an eCommerce business. It could be tough for some online business owners to monitor products, manage supplies, and centralize the database. Blockchain technology can help you to achieve these tasks. It allows eCommerce businesses to manage their inventory more efficiently and invest in other resources to track and monitor stock.
Many of the largest retailers have adopted or are testing Blockchain for the supply chain and, of course, reducing costs. Most of them use the Blockchain to eliminate the paperwork and manual work associated with international product shipping.
The data from a bill can be easily placed on the Blockchain at each stage of the supply from the starting point. It can also be automatically entered by eliminating an expensive administrative process of receipt guarantees and approvals. This way, all the participants can track the shipment through its journey, verify the product information at each step, and be sure that the data is accurate and trustworthy.
Merchants who sell unique items such as higher risk products and certain expiration dates can reap the biggest benefits.
Blockchain and cryptocurrency have brought decentralization to eCommerce, creating marketplaces where anyone can sell products. Many of these marketplaces are paying attention to specific categories. For example, Rare Bits focuses on crypto-collectibles and Wax on virtual game items, while OpenBazaar and BitBay are more general marketplaces.
Although transaction volumes on these decentralized marketplaces pale in comparison to typical eCommerce volumes, they’re providing an option for merchants who target a cryptocurrency-savvy community or want to expand their retail channel and appreciate a decentralized model.