E-commerce is among the most effective approaches to company development resulting in dozens of organizations becoming successes. This is due to the opportunities offered by e-commerce including:
– rapid sales growth
– effects on networks
– enables world-wide activities;
– lack of ownership of assets
The modern world is changing rapidly. So over time, there will be a different approach and the essence of e-commerce will change.
Opportunities and prospects for e-commerce
Companies will decide to abandon intermediaries. Software has been developed that enables the buyer to:
– avoid deficiencies in supplier work
-view offers from companies at any time of the day
– buy goods whilst abroad
By utilising the benefits of automation the value of the goods has decreased. The end consumer has little or nothing to pay for the services of intermediaries.
What’s next? Instead of modern software, blockchain will be more efficient, economical, and transparent. Just five years ago, the emergence of a qualitatively new type of technology ‘intermediaries’ were considered matters of artificial intelligence and it seemed that it was not the time implement this. Blockchain technology is now dynamic, and confidence in smart contracts and other peer-to-network architectures is growing. For example, the CREDITS platform, which combines as applications, service, and smart contracts, has emerged.
What is blockchain and smart contracts?
The essence of blockchain and bloc technology is explained in the publication on cryptocurrency by columnist Michael Casey: ‘technology allows ordinary people and organizations to engage in platform-based transactions without establishing a trust relationship.’ Information about all the operations performed is always displayed on the last action.
A blockchain is a register of continuous and sequential records that are reported and stored on more than one computer. Each node is responsible for one particular program. ‘The latter has source code, is responsible for the registration of transactions, and defines transactions as completed’, the author considers.
It is known that smart contracts are programs that fulfil the role of agreements whose conditions are specified in a specific device. The key task of a reasonable contract is to create business conditions most often through the internet without contacting the intermediary. Operations are performed anonymously. If the parties have fulfilled the terms of the smart contract, both will win. Smart contracts are the last puzzle that allows you to use blockchain technology and not contact the intermediary.
‘Blockchain and smart contracts are tools with a wide range of capabilities and prerequisites for building new markets’, explains the founder of blockchain CREDITS Igor Chugunov. Buyers and sellers will be able to interact in confidence-trading operations without the involvement of brokers and other intermediaries. Today, this is one of the major threats to e-commerce operations.
Will online markets disappear?
During the next 1-2 years, blockchain and smart contracts will not be able to disclose e-commerce. Blockchain technology is continually improving and becoming increasingly popular, so its importance will grow in the long run. and e-commerce is gradually exhausting its possibilities.
In the opinion of specialists, the risks to companies that are actively exploiting e-commerce opportunities are significantly reduced. Their work is automated: Most transactions are controlled by the Central Control Centre. There is little or no intervention by any person, responsible solely for control (programs also sometimes fail) and customer service (no communication has been disallowed). However, the use of automated systems may also be a scam.
In some cases, retailers are concentrating exclusively on e-commerce. This approach is easily replaced by a decentralized counterpart. Transactions that do not require automatic use are much more difficult to replace. An exception is the provision of services using the internet.
Amazon, the leader of merchandise sales through the internet, offers the ability to sell products on your own platform. On the basis of the specialized product, the identification of the goods is made, the ratings are generated and the calculations are carried out.
The organization has also created a service Fulfillment by Amazon (FBA), through which the seller orders the storage, packaging and delivery of the goods. In this case, the contractor shall specify the customer’s name on the packaging documents that the end customer receives.
Amazon has developed one of the most modern and advanced services in the world. Both large and small businesses benefit from collaboration with the company. So the application is an excellent opportunity to grow your business and increase the number of customers.
Service FBA provides Amazon with a more stable market position. The company uses e-commerce capabilities, providing not only storage, packaging, transportation, but also continued maintenance of the goods on the basis of hundreds of its own physical offices.
Other companies also draw attention to blockchain and reasonable contracts. In the near future, Mambo24is planned to take advantage of the technology. VISA is planning use blockchain. Intel is investing in research on the potential of the technology and its future use.
Blockchain and smart contracts cannot compete with online services that are supplemented by physical service. It is now a qualitatively different level of service offered by the world’s largest companies.
What do small companies do?
The above-mentioned organizations have a billion-dollar turnover and great financial opportunity to invest. However, small companies may also be able to mitigate long-term risks. The latter can also offer additional services as a supplement to online activities. This can be made out of competitors and offer more favorable terms to customers.
Take the example of a small company that rents housing. You can create a special service on your organization’s site that will: report free apartments to the date you specify;
Show photographs of the premises;
Provide key transfers;
-Explain how to get to the rented apartment;
-Register the time of arrival and departure of the guest;
-Organize the cleaning of the premises.
The blockchain is a relatively new technology, so many of its possibilities are still unknown to the masses. However, this is one of the most promising areas for business development at the level of artificial intelligence, neural networks and 3D printing.
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