New technologies tend to disrupt existing systems and the blockchain is no exception. This technology is bringing about changes to both small and large market structures. One industry that is experiencing the power of blockchain technology is the eCommerce.
The eCommerce industry is currently experiencing a significant turnaround all thanks to blockchain technology. Even before the adoption of the blockchain, the industry was doing quite well. Last year, retail eCommerce platforms sold products worth $2.304 trillion. In fact, this which was an approximate increase of 24.8% from the previous year.
Blockchain could eliminate the monopoly
The blockchain has the power to decentralize the eCommerce industry. Only a handful of players currently control this market space creating a monopoly. The decentralized nature of the blockchain will help distribute power to all relevant stakeholders. It will provide everyone in the industry with an opportunity to expand and change the eCommerce market, as we know it.
However, key players like Amazon, Walmart, and Alibaba are doing everything in their power to stay on top. Additionally, these three companies have important blockchain-based innovations that will help secure their positions. Despite their efforts, experts believe blockchain technology will soon change the dynamics.
Increase eCommerce transparency and proper records
One aspect that increases the popularity of the blockchain is transparency. With an increased level of crime in various industries, people are happy to adopt technology that enables transparency. With the blockchain, both the retailer and the customer can track their goods and any related information if they so choose.
Retail shops will thrive or die depending on the reliability of its supply chain. Through tracking, retail shops will know where their stock is at any given time which is especially advantageous in the eCommerce industry. Also, they will be able to ascertain when and item will arrive and whether or not the vendors are supplying the correct products.
In addition, the blockchain assists in data storage, leading to the creation of proper records. All information stored on the blockchain is secure and free from third party manipulation. The blockchain network is virtually impossible to hack. Proper records and transparency leads to the establishment of trust between the customers and retailers.
Reduced transaction cost
Blockchain technology delivered on its promises. Unlike some existing technologies, the blockchain decreases the cost of running a business. Through integration of various systems, the blockchain allows business owners to reduce costs involving IT support, administrative tasks and so forth. Similarly, transparency allows eCommerce shops eliminate unnecessary expenses and redirect these funds into growing the business.
In addition, using cryptocurrencies like Bitcoin, Bitcoin cash, Litecoin, and other digital currencies is cheaper compared to conventional currencies. By spending less on transactions, customers and shop owners are able to initiate considerable savings at the end of the day.
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