Over the past few years, the ecommerce industry has become an indispensable part of global retail. Similar to other businesses, buying and selling of products underwent a substantial transformation. All thanks to the advent of technologies and ongoing modern life that allow customers to get the desired product anywhere and anytime.
Now, the integration of blockchain technology again changed the scenario of the online ecommerce marketplace.
The future-ready platform is packed with security features and the transfer of control and decision-making from a centralized entity to a distributed network. There is a lot more to know about this platform. You can also call Best Web3 Development a decentralized ecommerce platform, then keep scrolling.
You can also share words with our experts to know more about decentralized platforms.
Let’s start by understanding some exciting facts about online sales and blockchain technology;
These astonishing facts define the popularity of blockchain technology that decentralized power platforms define its growth, and collaborating it with ecommerce can result in wonders! Let’s dive deep into the ocean of decentralized ecommerce platforms and have a closer look at the topic.
With the increased demand of the e-commerce industry and security issues, Decentralized Ecommerce platform steps into the trade with enhanced security features. Let’s understand the need to build Decentralized Ecommerce apps or websites;
|Centralized Ecommerce||Decentralized Ecommerce|
|Meaning||Centralization ecommerce keeps the control of planning and decision-making with the highest management.||Decentralization e commerce provides distributing power, accountability, and responsibility among different management levels.|
|Involves||Systematic and consistent reservation of authority.||Systematic dispersal of authority.|
|Security||More vulnerable to cyber-attacks and data breaches.||Usage of multiple nodes makes it harder for hackers to target and steal sensitive information.|
|Suitable For||Small-sized organization||Large-sized organization|
|Communication Flow||Higher fees||Fewer fees|
|Decision making Authority||Lies with the top management.||There is shared decision-making authority.|
|Advantage||Proper coordination and Leadership||Sharing of burden and responsibility|
|Decision-making speed||Significantly faster||Comparatively slow|
|Implemented when||Inadequate control over the organization|
Considerable control over the organization
Unlike a traditional ecommerce marketplace, a decentralized marketplace is based on blockchain technology, where every piece of information is backed in blocks. Therefore, every article or good is also given NFTs (non-fungible tokens), which means unique and not interchangeable. It leaves no scope for changing or altering the information, and buyers will get the same product as they ordered online.
Centralized ecommerce stores function on complex supply chains that are spread across multiple different stages and geographical locations. But a decentralized ecommerce store offers web3 powered supply chain management solutions, highly-secure alternatives that build seamless connections with all its participants using Blockchain technology. The open record keeping and enhanced transparency allow ecommerce brands and users to trace every step of a product’s production and shipping journey.
Decentralized ecommerce platforms have the potential to offer a wide range of exciting opportunities to buyers as loyalty programs. Brands can offer various NFT loyalty rewards that users can earn points with the freedom to use as they see fit, without the need for interaction with the company itself. Secondly, it boosts the NFT marketplace, as NFT is in limited supply and more valuable.
Cryptocurrencies are a key part of new-age platforms. It gives brands access to a new, potentially profitable demographic that is packed with transparency in their transactions. The next-gen money is less expensive than plastic cards because there are no fraud-related checks or charges involved. Therefore platforms like Shopify and BigCommerce are allowing users to transact within Cryptocurrency.
Decentralized platforms help in creating lasting relationships with their customers. The platform builds loyal communities around the brand and generates additional revenue from already interested parties. Users can share, exchange and sell their NFT loyalty rewards to others. It maximizes brand value among those groups and rewards customers to generate additional revenue.
Decentralized applications have a big part in revolutionizing the metaverse. These platforms allow users to explore, play, shop, and interact with others from the comfort of their homes. For instance, Nike opened “Nikeland,” a micro metaverse at the end of 2021, which is backed by decentralized technology. The platform has attracted millions of visitors from across the globe who interact with celebrity visitors and invest in virtual Nike products.
Now, it's time to discuss who can utilize a decentralized ecommerce platform. Or what type of business can leverage the advantages of decentralized ecommerce apps? Here is a worth reading for you;
As the name defines, vendor-specific websites are one seller dedicated where goods and services are sold by a single business. This is the most common ecommerce category where most fashion brands such as Adidas, H&M, Nike, and more deal.
The platform where retailers sell various sellers' products at their online store. The retailers have control over the selection of vendors on the platform. Retailers can also take ownership of the products' photos and descriptions to keep everything looking nice and pulled together. Building these platforms with the power of blockchain technology tokenizes all online articles.
A marketplace is a place where there is no restriction to register and sell goods, but have restrictions for what to sell on the platform. NFT marketplaces like Opensea and Rarible are perfect examples of defining ecommerce stores embedded with blockchain technology.
If you are a newbie and a bit confused, which will be the perfect platform for your business needs? You can think among these.
Now we have gone through various decentralized e-commerce models, and now it's time to understand how you can generate money from the platform.
To attract and retain your users on your platform, offering special subscription plans always works. This is also the major source of income for many platforms. It keeps them engaged with your business and lets them enjoy special offers such as exclusive discounts, no-cost delivery, and sometimes freebies too.
The most common revenue model is where you will charge additional money than the actual cost of web3 development. It is the same model as brick-and-mortar businesses, where you will earn over the cost of acquiring or manufacturing from end customers.
You can earn a handsome income from third-party advertisements on your platform. There is another way for multi-seller ecommerce stores to earn money by offering sellers to advertise their products with eye-catching banners on the platform.
You can add delivery charges on every article sold. On your decentralized ecommerce store, you can also include minting and gas charges in the final price. Additional costs help you to bear blockchain technology costs.
Affiliate Revenue Models such as AMAZON and other popular businesses are offering where sellers can roll themselves and sell their goods. The company charges a specific amount from customers. You can also offer such a business model to generate business revenue.
Selection of the right technology is a top priority in building an innovative platform. So, make sure your selected blockchain technology is able to handle a huge amount of data, ensure security, integrate apps for excellence, etc. Some of the highly recommended blockchain technologies involve ethereum, Solana, Polkadot, Polygon, and Aptos, which are known for their high transaction processing speed and end-to-end security features.
We utilize public blockchains such as Polygon, BSC, Ethereum, Tezos, Flow, and Klatyn or application-specific blockchains like Polygon Supernet and Avalanche Subnet.
Platform security is an essential requirement to discuss, especially for the ecommerce business as you are building decentralized ecommerce, which is backed by blockchain technology-based smart contracts. The platform allows users to only proceed with the transaction if the users are able to fulfill the first conditions. The automatic mechanism of smart contracts detects adversary action without no manual intervention. An end-to-end encrypted platform ensures complete data security.
An appealing ecommerce platform front is a prerequisite that attracts users. Also, the easy-to-navigate feature enables users to adopt a marketplace, buy tokens and get better insight into products. Users can also know about previous owners of particular assets.
Understanding the cost of developing a decentralized ecommerce platform is the biggest concern for every budding entrepreneur. Remember, the average cost for decentralized ecommerce app development or website development can range between $55000 to $156000. But all these are based on multiple factors, such as;
Besides that, there are certain other facts that define the decentralized ecommerce platform development cost. These involve decentralized ecommerce app development company fees, the number of experts employed, hours spent, the complexity of the project, etc.
You can consult with our experts to understand the exact cost of your decentralized platform development.
Hiring an experienced web3 development company can help you to take advantage of open source libraries and frameworks. Also they use pre-purchased tools that do not put burden on your pocket.
Defining the scope and goals of the Decentralized Ecommerce marketplace is the first stage. Here we will discuss who will be your product type, target audience, competitors, market needs, and industry demand and customer expectations. During this phase, we will identify your business aims and objectives.
Our blockchain specialists gather and evaluate the requirements for the decentralized ecommerce platform. We work on the scope and purpose that has been established. Even establishing functional and non-functional needs, restrictions, and limits is a part of this process.
Our blockchain specialists analyze the requirements and then attempt to create a proof-of-concept prototype to assess the suggested blockchain ecommerce solution's viability, efficacy, and efficiency. At this stage, we also assist you in identifying any potential problems or difficulties.
After gathering and examining the requirements, we create a thorough definition of the functional and non-functional requirements, constraints, and other pertinent project information for your decentralized ecommerce solution.
You must develop the architecture of the decentralized ecommerce store after creating the requirements specification, including picking the best blockchain platform, consensus method, data storage mechanism, and security measures.
Decentralized ecommerce solutions must be created by creating the codes, connecting them with other systems, and extensively testing them after designing the architecture.
Once the project is completed, our solution specialists try to deploy it in a real-world setting and monitor its performance to ensure everything runs properly.
We have a proven set of experience and expertise to build your industry-leading solution. We hired seasoned blockchain developers who understand your industry, business, and customers before developing a solution. Know more about us;
If you have any questions or queries, share words with our experts. We are ready to guide you all the way from deciding on the technology to designing, developing, and providing maintenance support!!