We all have heard a lot about Blockchain & Ethereum, but when it comes to dApps, not a lot of us would have heard about them. Even a tec...
Blockchain technology is taking a progressively significant role in the global e-commerce sector. This ground-breaking technology is acting as a backbone for a new breed of expertise. With exciting use-cases of this technology across online retail and far beyond, it’s little surprise that e-commerce giants are jumping on the technology.
Blockchain technology in e-c0mmerce has undergone several phases of transformation. The booming growth in this technology had made it one of the most profitable sectors of the century. This revolutionizing technology is anticipated to grow by many folds in the next few years.
Let’s see how Blockchain is helping overcome the biggest issues in the e-commerce supply chain.
What are some of the major supply chain threats?
Supply chains are multi-faced and e-commerce businesses require various approaches for mitigating different types of risks.
A layered defense and a well-structured plan can help the businesses in dealing with all the potential supply chain issues as mentioned below:
In the 24*7 world of modern trade, global supply chains are also at risk due to the connectivity of today’s systems. Various systems can be integrated through the open-source software, and these integrations and modifications open the windows for new risks. Each new modification results in added costs for new upgrades, and these poorly integrated systems increase bottlenecks and disruptions.
Cyber-attacks have become one of the predominant risks in modern supply chains. Even a single node with malicious intent can bring the entire supply chain down and force the freight rate to skyrocket. Cyber-attacks are also becoming weapons for terrorists, hence the potential risk is far greater than we can imagine.
3. Data integrity and quality
Data is a major part of supply chain management. Data integrity is subjected to the strength of data in the supply chains. Misplaced data can result in reduced profitability for the shippers and other stakeholders. Also, businesses tend to isolate their data which further increases the risk. The fear of data breach is always there, and but data integrity can be strengthened by making it transparent with supply chain partners.
4. Supplier consistency
According to a study, only 45 percent of the suppliers continue to operate after a disaster. Disruption in the consistency of the supply chain stakeholders may result in various other economic losses in the supply chain. The supplier consistency applies to the manufacturers of the supply chain as well. Supplier consistency is majorly required in the transportation of raw and reclaimed materials.
5. Transportation losses
Transportation risks are associated with various other potential supply chain risks. Wherever these other pitfalls exist the risk of losing the ability to transport also exists. Carriers having strong networks also suffer setbacks considering these risks, hence having a solid plan to overcome these issues is the key to overcoming these issues.
E-commerce Blockchain: The benefits
The relevance of Blockchain technology in the e-commerce sector is very well in context with logistics management. Considering the challenges in the supply chain that range from inventory management to fraudulent activities.
1. Cost Reduction
With Blockchain technology, an e-commerce business can handle their inventories hassle-free, combining payment processing and product descriptions with other business activities. An added advantage here is that in return businesses can reduce the time they spend on maintaining systems that facilitates these activities. Also, Blockchain-based currencies can help reduce the transactional fees charged by banks.
2. Reduction in cyber threats
Most of the online retailers experience issues trying to keep up with their competitors and rising consumer expectations. In addition to the challenges arising from cyber threats, businesses are also at the risk of losing customer data and a lot of cash. Blockchain technology can help effectively solve these challenges faced by online retailers by offering the highest level of security in form of distributed ledgers.
3. Speeding up the transactions
With the help of Blockchain technologies, customers with e-commerce websites can speed up their transactions. Unlike before when buyers used to wait for prolonged periods for the transactions, Blockchain offers them the convenience they require.
4. Boosting trade in other countries
Isn’t it amazing how blockchain technologies can offer third-world countries a chance to trade online? With blockchain’s peer-to-peer system consumers in these countries don’t require a middleman to process the payments. In addition to this, these technologies are also opening doors for various online retailers that can take the advantage of growing markets in developing countries.
5. More convenient rewards and referrals programs
Blockchain technology allows various brands to easily issue reward points that can be redeemed across various platforms and several partner sites and brands. Businesses also pay content creators with digital tokens that can also be converted into preferred currencies.
The future of Blockchain-based e-commerce supply chain
Blockchain-based technologies and e-commerce sites altogether form an ecosystem that is viable to both consumers and retailers. As online retailers are rapidly adopting this technology based on a digital ledger, they are also in search of new ways of serving their consumers.
Here are a few opportunities that are being created by blockchain technology in the e-commerce market:
1. Smart contracts
Smart contracts act like computer programs that are capable of automating tasks based on their pre-set rules. Blockchain-based ledgers are instrumental in storing them and help automate e-commerce related processes. Blockchain can help grow e-commerce enterprises by cutting down on costs and automating the majority of functions.
2. Easy to access receipts and warranties
Blockchain technology provides online retailers and their consumers the convenience of storing receipts and various warranties of the products. Moving forward, the future of Blockchain in e-commerce also brings paying content creators in digital currency.
3. Supply chain monitoring
With a reliable supply chain, online stores can easily achieve their desired business goals. This is because the supply chain enables store operators can know the stocks that are in pipeline and when they should arrive. Supply chain monitoring can also help the operators to verify the type of products that vendors are supplying.
E-commerce operators from different types of world are in search of new and robust technologies to make their businesses more profitable and efficient. Besides providing faster and more economical methods, blockchain facilitates all the activities that the current ecosystem allows. Since the future is imminent, we can easily democratize the e-commerce economy by making the entire system more transparent. Blockchain technology seeks to capture the power of financial institutions to allow people to have control over their transactions.