In less than two decades the e-commerce industry was formed and rapidly became the standard way for a significant number of the global population to purchase items. 2000 was the year that a large number of businesses in the United States and Western Europe began to represent their services in the World Wide Web.
By 2007, in the United States, e-commerce sales were accounting 3.4% of total sales from traditional “bricks and mortar” stores that had also decided to offer their goods online. Within the 2000-2010 timeframe, we saw the offering of e-commerce services expand beyond just purchasing products, to being able to do online food ordering, media streaming, online advertising, e-commerce payment systems and online storefronts. With these advancements, we also saw a high number of bricks and mortar stores close their doors in favor of going 100% online.
In 2016, the number of online customers globally was 1.66 Billion. By 2022, this number is predicted to skyrocket to a whopping 2.14 Billion.
So, we think e-commerce is great. But it could be better.
The e-commerce market is backed up with the help of local vendors who take orders through web platforms and fulfill them through third-party delivery systems. This leaves a massive loophole for error in order fulfillment or intermediary corruption. With the increase in market inclination towards online shopping, these malpractices can act as a significant setback by turning off the interest of the target audience. For example, in the United States, the value of returned items is $260 Billion per annum, all of which were originally bought online.
Another challenge faced by the market is the lack of transparency between the vendors and the platforms. Merchants lack the valuable insights about conversion rates, bounce rates and source of traffic at their product site. Availability of such insight is necessary for merchants, as this information helps them to design more strategic and effective marketing strategies, as well as better ordering.
Ultimately it is the middlemen who are the main hindrance to the purchase process for the e-commerce industry. They are responsible for the rise of costs, as well as the slowing down of transactions. For payment portals accepting credit cards, some charge a staggering 2.9% in charges, above the checkout costs. These additional costs often cause customers to back out of the purchase at the final stage. Again, leaving merchants helpless while losing sales.
The future of e-commerce
Advancements in technology have enabled a more intuitive alternative for the way businesses can engage in online commerce and marketing. These advancements open an excellent opportunity for the goods and services sector, whereby merchants can finally realize the full potential of their store.
Despite the challenges for merchants, e-commerce is not going to slow down. In Asia, the number of digital buyers will hit the one billion mark for the first time in 2018.
This generation of consumers is more comfortable than ever with online commerce, and regardless of its current issues, they have come to trust online commerce and marketing. Much of this comes down to convenience. Even when there is room for improvement, consumers prefer the cost and time efficient solutions which deliver their online purchases to their doorstep, no need to leave the house to gain access to whatever product the heart desires.
Blockchain paving the way for the future of e-commerce
E-commerce has been crying for a mechanism which enables them to crosscheck the operations and validate the procedures involved in an online sale and transaction. A customer-centric mechanism encourages the growth of long-term relationships with users, which in turn creates recurring sales and profits.
It is the smart-contract feature of the Blockchain, which enables us to legitimize the process and build credibility.
Blockchain technology has already begun to change the face of the internet and our online interaction. E-commerce in its current state is already wildly popular and successful. However, with advancements in technology must come continuous improvement and the elimination of barriers which only serve to reduce the value-experience for both merchants and consumers.
Through leveraging Blockchain technology, we can give the e-commerce market the following benefits:
- Elimination of middlemen that do not add value to a product or a service but only thrive on commissions; thus reducing transaction costs and boost user experience.
- Increased transparency. Consumers and merchants will know how and where their money is flowing.
- Rewards and incentives to the users of Kart block platform keeping them engaged and motivated through Kart Block Tokens.
- Creating growth opportunities for the e-commerce industry by dialing down the razor sharp competition.
- Creating a new dynamic in product advertisement and user engagement through clicks and referrals.
- Unlocking the potential for other data-driven technology companies by providing clean and unaltered data.
- Allowing merchants to run analytics on their audience-data which can help them to understand and engage with users more strategically.
Kart Block revolutionizes e-commerce
Kart Block aims to solve the challenges e-commerce faces; minimizing errors and corruption, which in turn will reduce the volume of returns, while increasing customer satisfaction and, of course, revenues for e-commerce businesses. We do this through our unique business model.
The Kart Block ecosystem combines the Kart Block e-commerce platform, digital wallet, and cryptocurrency reward mechanism. The simple yet powerful idea behind this ecosystem is directly rewarding the customers/users for their valuable contribution to the Kart Block platform, without the need for any middlemen. This reward is in the form of a cryptocurrency (Kart Block Tokens).
The components of this ecosystem are made up of the following;
Digital wallet: The digital wallet will serve as the entry of a user to this ecosystem. It will be used to store the Kart Block Tokens as rewards and use this cryptocurrency as required by the user.
Kart Block e-commerce: This component will be like any other e-commerce platform available today. Vendors and their products for sale will power the marketplace. The only major underlying difference will be that the customers, as well as the users, will be rewarded with Kart Block Tokens for their actions. This platform will run atop the Blockchain layer to maintain trust and transparency.
Kart Block Tokens: This is the native cryptocurrency of the Kart Block ecosystem. It is the standard ERC20 token and will be used to provide incentives to the users, merchants, and the customers (For example, adding new users/merchants, updating profiles, purchasing products via Kart Block, etc.).
Powered by Blockchain technology, the Kart Block solution offers:
In its current state, the online financial system has money bouncing around between various entities once a user makes a purchase. This is the effect of middlemen and affiliates, due to the commissions involved at each stage. It is this process that causes increased payment processing fees.
Kart Block turns the tables on this scenario. With our unique Blockchain model, the middlemen and commission based endorsements are no longer required. The ‘programmable currency’ of this platform comes with added benefits including transparency, no-transaction fees, and accountability.
Most centralized marketplaces do not share critical customer data with merchants. This information is wildly valuable to merchants, yet, often out of reach of extremely expensive to gain access to.
Kart Block removes this monopolistic system. Transactions are visible, and merchants can run analytics without obstacles. We are bringing radical transparency in the e-commerce economy. Our underlying Blockchain technology guarantees visibility of the activities, transactions, and any data flow through the system.
Restoring fair competition
The e-commerce industry faces exponential competition and razor-thin margins on online sales. E-commerce is a massively capital-intensive domain, and the competitors are bleeding each other out with new tricks and tactics.
Increasing transparency and rewarding consumers for their interaction and purchase with a merchants business helps to bring balance back to the market; reducing the need to undercut and lose revenue through middlemen.
Through our cash back, loyalty programmes, referrals, and coupon deals, Kart Block ecosystem enables growth and evolution of e-commerce enterprises.
Kart Block offers an alternative advertising methodology where customers are incentivized for their actions and contribution, rather than the money flowing to a giant online corporation.
In practice, customers get paid with Kart Block Tokens for seeing add banners, then they get more for clicking on those ad banners, and then, finally, they receive more tokens for buying the advertised products. This is a compelling customer-centric idea that benefits both seller and buyer. There is also a referral program on the platform through which users can refer new users and earn Kart Block Tokens. This will eventually build a tiered system where the more users refer; the more they earn.
Kart Block reward system
The reward system focuses on creating social engagement whereby users will be rewarded for rating and reviewing the merchant’s site. Social reviews play a vital role in business development as user reviews and recommendations are an impactful way to generate brand credibility, which leads to new users. Users can contribute:
- Product reviews
- Fellow consumer query resolution
- Uploading pictures over other platforms to promote Kart Block
- Ratings on purchased products
Kart Block Tokens
Having a unified payment mechanism such as Kart Block Tokens generates ease of access, as well as required safety. Kart Block Tokens act as an electronic payment entity which eliminates the need to involve intermediaries in the transaction process. As these tokens work as bounty rewards, users will be able to get better deals on a purchase.
Kart Block Tokens are the native Blockchain currency of the Kart Block ecosystem. Kart Block Tokens can be sent, received and stored via the Kart Block wallet of the user.
With the Kart Block Token, the user can hold it, trade other currencies and assets with it or use it for transactions to purchase any other item through the Kart Block platform.
The Kart Block e-commerce platform distributes a mode of programmable money amongst the users that helps to create a secure and hassle-free transaction system. Kart Block users have their own digital wallets where they can also store their cashback and loyalty points. These wallets are used for accepting reward points, made through their contribution to the business development.
Kart Block Tokens are a way to ease the e-commerce process and provide optimum security to the end-users. A pre-existing currency wallet eliminates the hassles associated with the conventional methods of card payments, including additional service costs.
In summary, Kart Block creates a trustworthy online marketplace where customers can directly interact with the merchants and make purchases. Every user of this ecosystem will be rewarded with Crypto tokens for adding value to the ecosystem. We saw the need to cut out the middlemen, who notoriously slow and hinder the process, and in place through a borderless payment gateway, unite merchants and consumers across the globe.
Visit our website today to register, start shopping or learn more.