By Vishal Jain
Logistics operations for e-commerce have evolved into a complex ecosystem, especially in the past few years. From offering same day deliveries to rapid deliveries for Q-Commerce, convenience is at the centre of e-commerce growth. This has only been possible with streamlining e-commerce solutions with blockchain technology.
Blockchain in a nutshell is like a digital ledger. It records every transaction on a block across multiple copies of the digital ledger. These multiple copies are then distributed over many nodes. Blockchain has numerous applications.
Applying blockchain technology for e-commerce solutions has an array of benefits. Increased security and transparency, optimised operations and augmented customer experiences are all possible with Blockchain Technology. With the unprecedented growth in e-commerce, blockchain will continue to be at the core of this growth aiding more secure, efficient and experiential digital marketplaces.
Blockchain technology addresses various challenges of e-commerce and aid in enhancing key aspects of e-commerce operations. Here is how blockchain technology is revolutionising the e-commerce industry:
1. Enhanced Security: Trust in the vendor is a major part of shopping online. Financial transactions must therefore be secure and airtight. This includes data privacy as well. For this to happen, blockchain’s decentralised nature helps in achieving a high level of security for e-commerce transactions.
Personal information like customer data, payment details etc are stored securely on the blockchain. With various new innovative modes of shopping like social commerce gaining traction, blockchain will continue to aid in reducing the risk of data breaches and unauthorised access.
2. Identity fraud prevention: Every transaction online, especially financial transactions, requires a secure identity verification. Blockchain-based identity verification systems enhance the security of user identities during e-commerce transactions. This eliminates the need for multiple login credentials and reduces the risk of identity fraud. This easy verification process for customers increases trust and preference for the brand.
3. Transparency: Blockchain’s decentralised nature allows all the stakeholders in a particular transaction to have access to the same set of data. This increases transparency and ensures that every set of data including transactional records are tamper-proof. This is also beneficial for dispute resolutions. E-commerce collaborations are not limited to geographies anymore and involve multiple stakeholders. At times when disputes arise, the transparency provided by blockchain can be crucial in resolving the same. This ensures fair and ethical business practices.
4. Supply Chain Management: Supply chain management is the backbone of logistics which is at the centre of e-commerce. With the help of blockchain, businesses can improve supply chain management. This optimisation includes real-time visibility and traceability of products. The real-time access to this data helps businesses take preventive measures in case of any inefficiencies or delays. They can optimise logistics, reduce pilferages, manage inventory better and optimise the entire logistics process. Better supply chain management with blockchain technology ensures a positive experience for the customer helping in better customer retention and acquisition.
5. Global Market access: As mentioned, e-commerce is not limited by geographies. As it evolves, it now includes stakeholders in various countries worldwide. This incredible global access is possible only with Blockchain technology. Blockchain facilitates cross-border transactions without the need for traditional financial intermediaries. This catapults E-commerce businesses to a global market with fewer payment barriers like identification, currency conversion costs etc.
6. Customer retention and conversion: Without a brick and mortar presence, e-commerce is all about building relationships with the customer. This includes exciting offers, re-marketing and loyalty programs. How blockchain helps with this is that it enables loyalty programs with digital tokens or reward points on the blockchain. This digital token can be used for special offers, discounts, personalised products and overall a personalised, customised experience for the customer which builds customer loyalty.
Blockchain technology provides a robust framework for the e-commerce industry. It streamlines the key operations of e-commerce like increased security, transparency, automation, positive customer experience etc. These efficient and air-right solutions will continue to help e-commerce in optimising operations, increasing viability and accessibility from production to purchase and foster innovation in digital commerce.
The author is co-founder, Roadcast