When Web3 meets E-commerce

Buying things online should be safe and decentralized

I have been in the e-commerce space for long enough to see all major trends pass. But, I witnessed a shift that made me start Bion. This was — Web3 in E-commerce.

Centralized e-commerce v/s Decentralized e-commerce

Last year, we saw three times more people buying stuff and getting crypto rewards. It’s not just us. Big stores like Walmart are using blockchain to track their products. Why? It helps them know exactly where things come from.

Vitalik Buterin, who helped create Ethereum, once said blockchain stops people from cheating the system. He pointed out that while some trust big tech companies, many don’t.

That’s where blockchain comes in. It’s making online shopping more open and trustworthy.

In this article, I’ll walk you through how this is happening and what it means for all of us who shop online.

The Evolution of E-commerce

Remember when buying stuff online felt like a big deal? It wasn’t that long ago. Back in 1995, Amazon sold its first book online. Fast forward to today, and e-commerce is everywhere. In 2023, about 2.6 billion people shopped online. That’s a third of the world’s population!

In 2023, about 2.6 billion people shopped online.

But it hasn’t all been smooth sailing. As e-commerce grew, so did the problems. Let me break it down for you:

1. Trust issues: In 2022, online shopping scams cost Americans $392 million. That’s a lot of people getting burned.
2. Privacy concerns: Ever feel like ads are following you around? You’re not alone. A study by Pew Research found that 79% of Americans are worried about how companies use their data.
3. Payment headaches: Credit card fees eat into profits. For small businesses, they can pay up to 3.5% per transaction. That adds up fast.
4. Supply chain mysteries: Remember the toilet paper shortage in 2020? That showed us how little we know about where our stuff comes from.

“E-commerce is not just about buying and selling online. It’s about fundamentally changing how business is done.” — Jack Ma

He’s right, but change isn’t always easy.

Take data breaches.

In 2014, eBay asked all its 145 million users to change their passwords after a hack. Imagine the panic! And it’s not just the big guys. Small online stores get hit too. In 2023, 46% of all cyberattacks targeted small businesses.

On the bright side, these challenges are pushing us to innovate. At BION, we’re using blockchain to tackle these issues head-on. We’re not alone. A report by Gartner predicts that by 2025, 20% of the top 10 global retailers will use blockchain for food safety and traceability.

So, how exactly is blockchain shaking up online shopping?

First off, it’s making things safer. In 2022, e-commerce fraud cost businesses $41 billion globally. That’s a lot of money walking out the digital door. But blockchain’s got a trick up its sleeve. Every transaction gets recorded and can’t be changed. It’s like having a super-secure digital receipt for everything.

Take what Alibaba’s doing in China. They’ve got a platform called Food Trust Framework. It uses blockchain to track food from farm to table. In one test, they tracked a package of mangoes in just two seconds. Before, it took days. Imagine how this could stop fake products or contaminated food.

Food Trust Framework

But it’s not all about Bitcoin. Stablecoins are becoming a big deal. They’re cryptocurrencies tied to regular money, like the US dollar. They solve the problem of crypto’s wild price swings. A report by Chainalysis showed stablecoin transactions grew by 250% in 2022.

“Crypto isn’t just a new way to pay. It’s a new way to move value around the internet.” — Patrick Collison, Stripe’s CEO

He’s onto something. Smart contracts on blockchain are changing how we handle refunds and disputes. No more waiting weeks for your money back.

Let’s talk about loyalty programs. Airlines have been doing points for years, but blockchain’s taking it to a new level.

Singapore Airlines launched KrisPay, turning miles into a digital currency you can use at stores. In the first year, they saw a 15% increase in active loyalty program members.

Now, here’s something cool. Remember NFTs? They’re not just for digital art.

Brands like Nike are using them for “phygital” products — physical items with a digital twin. In 2022, Nike made $185.3 million from NFT sales. That’s a whole new revenue stream.

Data privacy is a big deal too. With blockchain, you own your data. You decide who sees what.

Certainly. I’ll add a connecting paragraph to bridge the previous section with this one. Here’s the revised version with a new opening paragraph:

In practice — Bion

We’ve seen how blockchain is reshaping e-commerce on a broad scale. But what does this look like in practice? At BION, we’re not just theorizing about the potential of blockchain in online retail — we’re actively implementing it. Our platform serves as a living laboratory, demonstrating how the convergence of blockchain and e-commerce can create tangible benefits for both shoppers and businesses.

At BION, we’re putting the blockchain-e-commerce convergence into practice. Our platform showcases how this technology can transform online shopping:

1. Crypto Rewards: We offer up to 40% cashback in cryptocurrency on purchases. This introduces shoppers to digital assets through everyday transactions, bridging traditional e-commerce with the crypto world.
2. Transparent Referrals: Our blockchain-based referral system ensures automatic, transparent reward distribution. Smart contracts handle the process, eliminating disputes and delays.
3. Data Ownership: Users have greater control over their shopping data, aligning with blockchain’s principle of decentralization.
4. Supply Chain Transparency: We’re working on using blockchain to track products from manufacture to delivery, addressing a key e-commerce challenge.
5. NFT Integration: We’re exploring using NFTs for exclusive product drops and loyalty programs, showcasing how blockchain can create unique value in e-commerce.

What are the implications?

Let’s talk about how businesses can jump on the blockchain bandwagon and what it means for the bigger picture. It’s not just about following trends — it’s about reshaping how we do business online.

First up, how can e-commerce businesses get started with blockchain?

1. Assess your blockchain readiness: It’s like checking if your car is road-worthy before a long trip. Look at your current systems, your team’s skills, and your customers’ needs. Are you ready for this tech leap?
2. Choose the right blockchain solution: It’s not one-size-fits-all. Some businesses might need a public blockchain for transparency, others a private one for control. It’s about finding what fits your business like a glove.
3. Start small with pilot programs: Don’t dive in headfirst. Dip your toes with a small project. Maybe try blockchain for tracking a single product line. Learn from it, tweak it, then scale up.
4. Team up with the experts: You don’t have to go it alone. Platforms like BION are already in this space. We’ve learned the hard way so you don’t have to. Collaboration can speed up your blockchain journey.

Now, let’s zoom out. What does all this blockchain buzz mean for e-commerce as a whole?

Economically, it’s a game-changer

• We’re cutting out middlemen. That means lower costs for businesses and better prices for customers. Win-win.
• New business models are popping up left and right. Think of how BION uses crypto rewards — that wasn’t even on the radar a few years ago.

Socially, it’s leveling the playing field

• Financial inclusion is getting a boost. With crypto payments, we’re reaching folks who don’t have traditional bank accounts.
• Small businesses and individual sellers are getting more power. Blockchain makes it easier for them to compete with the big guys.

Technologically, we’re in for a wild ride

• Blockchain is pushing innovation in other fields. We’re seeing spillover effects in areas like AI and IoT.
• We’re not just changing e-commerce; we’re reshaping the internet. Web3 isn’t just a buzzword — it’s the future we’re building.

But here’s the kicker — all these changes aren’t happening in isolation. They’re interconnected. As more businesses adopt blockchain, we’ll see a snowball effect. More innovation, more accessibility, more transformation.

Conclusion

It’s clear that the convergence of blockchain and e-commerce isn’t just a passing trend — it’s a fundamental shift in how we buy, sell, and interact online. From increased transparency and trust to new reward systems and business models, blockchain is reshaping every aspect of online retail. At BION, we’re seeing firsthand how these changes are empowering both businesses and consumers. But this is just the beginning. As more companies embrace blockchain technology, we’ll likely see even more innovative solutions emerge, further blurring the lines between traditional e-commerce and the decentralized web.

Bion is a cutting-edge marketplace that transforms your everyday shopping experience by offering crypto backs — immediate cryptocurrency rewards. Now, with its mini-app available on Telegram. Check it out here.