March 29, 2024
7
min read
Decentralization is becoming an increasingly popular trend in politics, social media, finance, technology and other areas. In every walk of life, the decentralized model personifies democratic principles - it ensures privacy, prevents manipulation, boosts competition, and allows equal distribution of profits.
To date, eCommerce giants have basically controlled online sales by setting prices, profits, trends and products. Small and mid-sized retailers, eCommerce merchants and businesses have found it hard to compete with large corporations and marketplaces that manipulate the supply chain and traffic.
The decentralized evolution in the world of shopping
However, all this is about to change. The decentralization process has begun to impact technology through the use of the blockchain ledger technique in a growing range of applications. At Giftoin, we believe that the [next natural step](https://giftoin.com/launching-new-kinds-of-gifting) is decentralized shopping. It is only a matter of time until blockchain technology is applied in the eCommerce shopping arena, and which is ripe for change.
Decentralized shopping breaks down existing monopolization and enables retailers both small and large to compete due to smaller inventories and a deeper understanding of personal shopping habits.
What are the advantages for the decentralized shop owner?
Decentralized shopping is a fairly new concept that offers online retailers key benefits in several areas:
Increased Efficiency
- Decentralized shop owners don't need to maintain a large amount of stock, cutting down expenses for both inventory and logistics.
- A simpler supply chain significantly lowers shipping costs.
- Less manpower is needed, enabling savings on wages, utility costs and office space.
- Access to customer shopping behavior data enables a focus on personalized services for each shopper.
Smoother Payments
- Blockchain technology enables P2P payments to be conducted without relying on banks or credit card companies as third parties. Payments are smoother and fees are reduced.
- Payment can be conducted in many currencies, resulting in lower conversion charges and the elimination of single control on cash exchanges.
- No single digital wallet is required to conduct payments, facilitating transactions for both the seller and the buyer.
- As part of the blockchain, eCommerce merchants play an active role in managing activities alongside their peers.
What are the advantages for the decentralized shopper?
So what’s in it for the rest of us? Quite a lot, it seems:
Improved Shopping Experiences
- High-level authentication offered by blockchain technology ensures that transactions are transparent and legitimate.
- The ability to use all kinds of currencies and payment methods ensures an easier, cheaper and faster shopping experience.
- Checkout is faster, without any need to endure currency conversions or sudden price increases due to unexpected conversion spikes.
- Thanks to increased efficiency on the supplier’s end, deliveries and returns are faster.
- Decentralized social media enables targeted sales on a much more diverse range of social outlets based on different sizes, geographies, ethnicities and religions.
- A completely enables buyers to purchase and send one-of-a-kind, authenticated virtual items in seconds.
Lower Payments and Greater Savings
- Buyers can enjoy lower prices due to the elimination of payment fees and commissions.
- Everyone receives royalties of decentralized protocol because the technology enables calculation of micro payments.
- Shopping becomes completely open. There is no limitation of geographies due to credit card or digital wallet restrictions.
- Buyers can take advantage of competitive purchasing opportunities thanks to increased competition among eCommerce merchants.
- Personalized offerings and opportunities can be customized for buyers because their shopping data history “accompanies” them (in their wallet) anywhere they shop.
The inevitability of decentralized shopping
The increasing democratization which has taken place in many areas from politics to finance to social media will certainly lead to a major revolution in the area of shopping. Just as the move from physical stores to online shops was inevitable, so the decentralization of shopping is a natural evolutionary development, which will undoubtedly bring major benefits to both sellers and buyers.
At Giftoin, we believe that will become a major trend once decentralized shopping claims its rightful place.
