Amazon was a tough start in the late 1990s. But soon after e-commerce become popular and relaible platform for the consumers. And many other organisation start coming on this platform such as Amazon, eBay and Alibaba dominate the market. Although there are a lot benefits of e-commerce platform on the blockchain, but apart from this there is a dark side of e-commerce.
Seller need to pay high commission charges to the e-commerce platform for selling their products but they don’t have any special privileges to grab the audience attention. And they need to pay these charges for each platform. And these fees is really high. Additionally there are further charges for payment processing of credit card and paypal.
With conventional e-commerce organisation, the platform and company behind it act as watchman who limit communication between buyer and seller. Merchants struggle to build a long-term relationship with customers, since the marketplace company does not want them trading outside of its e-commerce platform. Communication is often restricted, or takes place within strict parameters, and the platform is able to view any messages exchanged between buyer and seller.
Use Of Personal Information
Each and every large online e-commerce service use personal data of its users it in various ways, from advertising through to selling it or sharing it with 3rd parties. Additionally, data breaches are an all-too-common occurrence. Personal data has been called the oil of the internet, and its value makes it a popular target for hackers. Although GDPR has somewhat improved matters, in many jurisdictions the laws around data use are far less clear. There may be no straightforward procedure for how companies should act in the case of a data breach, and they may not tell their customers that their personal information has been compromised for months, if at all. In short, data loss has gone from being an embarrassment or inconvenience for a company to little more than the price of doing business.
The Benefits Of Crypto Integration
Blockchain and crypto-currencies offer plenty of solutions to these problems. However, bitcoin was the first currency which made the Blockchain so much popular but over the time, Blockchain has also evolved and explored the new solution for different challenges.
The first fully decentralised market places are now taking shape. These aim to replace the entire functionality current e-commerce platform with a blockchain-based solution, using DAPP(Decentralized Application) to recreate the backend and inventory database. For example, BitBoost is exploring one such platform on the Ethereum network. One of the advantages of this approach is that it enables a completely different business model, which does not charge commission fees — it is a decentralized approach that does not involve a organization or require any watchman.
Merchants with their own website-based solution, there are still a lot of benefits on integration of cryptocurrency as payment gateway as an alternative or add on for traditional payment methods such as PayPal or credit cards.
When you start taking about the crypto-currency they can reach anywhere at anytime that’s why they also known as border-less payment gateway . So it really doesn’t make any difference whether you are buying a product from local store or another side of the world. That quickly overcome one of the major problem of fund transferring. (Banks will charge additional fee for foreign payments, and offer an exchange rate that is far from the market spot price — an extra stealth charge.)
This further can be used with the other processing resources of the E-commerce platform such as the shipping provider.
The major benefit of blockchain technology is that it eliminates the risk of distrust factor between all parties. It removes the problem of payment disputes or order details. It also makes the system tamper-proof.
Merchants also get benefited from crypto’s irreversible transactions, which ends the fraudulent chargebacks. There is no reverse payment processing mechanism, it is beneficial when a customer makes false claims they never received an item. At that time we can track back the transaction log from merchants to customers and find out the reality.