Blockchain technologies surged in popularity in 2017, with anonymous and private investors making skyrocketing gains from their holdings.
The industry has risen in terms of its market cap with at least an 800 percent rise experienced in 2017, which makes it a hot investment.
Investors also increasingly accepted both Altcoins and Bitcoins as long-term and legitimate investments, plus, investor adoption rates rose, which led to e-commerce companies gravitating towards the technology.
In essence, blockchain is giving traditional e-commerce platforms and entities transparency, supply chain management, security, and such cost cutting that you don’t only realize improvements in your business, your customers are protected as well.
But why are e-commerce companies increasingly dabbling in positioning themselves to trade in blockchain technologies?
Specifically, there are five major reasons why e-commerce businesses need to embrace blockchain.
The first reason is that blockchain offers consumer privacy owing to its decentralized nature, which improves your store’s transparency and privacy. This makes transactions transparent.
A real time transaction ledger is available, which records information on purchases, and each consumer gets an address that relays non-identifying information.
Secondly, blockchain works as a supply chain ledger, allowing you to track inventory, payments, and origins of the products in the system through P2P technology.
Thirdly, blockchain helps e-commerce businesses save money by reducing costs through transparency, security, and communication via its real time transaction ledger. It also helps bring down the cost of expenditure on quality assurance.
A fourth reason is that blockchain and related payments get rid of payment system fees such as those you’d get with credit cards. It bypasses transaction companies, placing payments directly on the blockchain.
This ensures you don’t pay any transaction fees as middlemen are eliminated.
Finally, blockchain helps both consumers and e-commerce sellers track receipts and warranties as it is a real-time transaction ledger in itself. Thus, when customers need such information, it is readily available.
It also protects your business in the event consumers try returning or fixing items that are out of warranty.
Sooner than later customers will realize all the blockchain benefits. That’s when a surge in traffic and sales is imminent for retailers.
The infographic below explains more about these five reasons and how they are beneficial to e-commerce businesses.
I am Roberto Garvin, co-founder of Mofluid. It is absolutely amazing to see how technology continues to evolve, from email to browsers, search engines and mobile. I am fortunate to witness it all and I’m really excited to see what’s next!