E-commerce simply is the use of the internet to conduct trading activities, from sharing business information to buying and selling goods and services.
It has been around for a very long time, however, its adoption rate experienced a significant boost during COVID-19.
With e-commerce, one can comfortably order goods and get them delivered to their doorstep, while this has enhanced customer experience, not all customers have good experiences from shopping or booking services online.
This is where cryptocurrency comes in, cryptocurrency is simply a form of digital money that can be traded on its own or used to pay for goods and services.
Also read, How Web3 will shape E-commerce
Cryptocurrency is enabled by blockchain technology and is helping change the negative narrative by improving the e-commerce transaction experience.
Using cryptocurrency in e-commerce provides lots of benefits, and there are various ways in which, it is already changing the process.
Below are 7 ways crypto is changing e-commerce:
The blockchain technology used to process cryptocurrency transactions are secure and verifiable as every piece of information is stored on the block.
Also, these payments are processed at an even faster rate and lower costs. Cryptocurrency also makes room for microtransactions which come in handy, especially for in-game purchases.
Using cryptocurrency provides a level of privacy in transactions. As individuals don’t have to disclose personal information when trading with cryptocurrencies.
This protects customer data and privacy, preventing identity theft.
Cybercrime is high with fake transfers or in some cases where payments are reversed. Once a cryptocurrency transaction goes through, it cannot be reversed. This is greatly helping e-commerce checkmate fraudulent payments.
Most e-commerce uses affiliates that can sometimes create bottlenecks for the buyers, with decentralized marketplaces these intermediaries are eliminated.
This would lead to reduced costs and improved transparency.
The use of cryptocurrency in e-commerce has increased global accessibility, transactions can happen at the speed of light no matter the country they are buying from without having to deal with currency conversion and the associated conversion fees. This will also help e-commerce tap into global markets.
This is using smart contracts to automate the transaction and supply chain, the smart contract is set that it executes once the terms of the contract are fulfilled.
This can only be set up with cryptocurrency since it works on the same blockchain technology as the smart contract. This improves overall efficiency in the e-commerce sector.
In e-commerce, people get coupons that they can redeem when they have accumulated them. However, cryptocurrency is improving it, so instead of coupons, customers get digital assets such as tokens or even cryptocurrency which they use in their next purchase.
There are associated risks to using cryptocurrency in e-commerce, one of the highest concerns is the volatility of cryptocurrency in that its values can vary significantly in a twinkle of an eye.
Other factors to consider are the regulatory policies and technicalities.
In conclusion, e-commerce should familiarize themselves with how to navigate the potential challenges to fully embrace the innovations cryptocurrency is bringing.
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