January 30, 2024
7
min read
First things first. Let’s define “DeCommerce”: You probably are acquainted with the term eCommerce, which refers to the sale of physical and non-physical goods on the Internet. Usually, an online retailer offers various products on a website and purchasers acquire items from there.
What is DeCommerce?
The basic concept behind Decentralized eCommerce (DeCommerce or DeCom) is that users can buy and sell products using the p2p paradigm. In practical terms, this means there will no longer be a need for a third-party broker, whether it is a bank, retail, marketplace, or any other financial, business or regulatory institution; users and sellers will be able to conduct transactions directly. Data regarding products, users and processing is saved in real-time, and is placed in shared storage that is trusted and owned by the users.
What about the Online Retailers?
Just to clarify, DeCom will not do away with online retailers. They too have much to gain from DeCom. Decentralization will enable eCommerce stores to expand processes and grow their businesses without requiring permission from a third-party or governance. The infrastructure will also provide more power and capabilities to smaller players in comparison to the centralized market where big players control most of the data.
This freedom will enable enterprises to open new business units in previously untapped geographical locations. In addition, online businesses will have direct access to more data about customer purchasing habits, enabling them to respond quickly to user-specific demands.
What advantages does DeCom offer?
DeCom offers a wide range of benefits:
- DeCom decision-making is completely transparent due to the authenticity of smart contracts.
- Prices will decrease because there is no middleman demanding fees or surcharges.
- Trading is much more cost-profitable for all the parties involved.
- Buyers can keep their data private, resulting in increased trust
- Buyers can track their purchases and follow the rates being charged throughout the process.
- The infrastructure ensures a systematic and shared dispersal of authority.
- The decentralized structure enables inspection of each unit in the trade chain, ensuring effective control.
- There is a shared decision-making structure, ensuring that no one has the power to abuse authority.
- Decentralization enables sellers and buyers to gain greater independence for expansion and growth.
- It will open the market to new types of blockchain-based virtual products.
The Transition to Web3 Products
Another huge benefit of the decentralization process is that DeCom will enable dealing in virtual assets such as NFTs, crypto and other Web3 products. New doors will open for users such as tokenizing physical and virtual assets, and making them available for auction, barter or direct sales.
When dealing in virtual products, online retailers can save on storage, logistics and delivery costs. They can open new categories and upload virtual items to their websites with no investment or risk. Virtual items can also be offered as bonuses and rewards to loyal customers, or be granted to incentivize new ones.
Web3 - The Future of eCommerce
Web3 offers unique sales and marketing opportunities that can be used creatively to satisfy existing customers, attract new purchasers and expand audiences. The transition to the metaverse, and other virtual realms promises to open up exciting and innovative opportunities for sellers and buyers worldwide.
