Changes in eCommerce with Blockchain Implementation
Interview with Storiqa’s CEO Ruslan Tugushev, also the founder of successful Boomstarter (Kickstarter for the Russian speaking global market).
Global giants in eCommerce have already began to embrace virtual currency in online commerce. Storiqa’s CEO, Ruslan Tugushev, explains how eCommerce will be changed with the blockchain revolution.
1. In 2016, total retail sales across the globe reached $22.049 trillion, and there are a few trends which prompt eCommerce to move ahead. We recently described technology trends in eCommerce for the year 2017, and since that time we encounter the ground-breaking direction of the blockchain. Why does eCommerce need blockchain, if everything is fine as it is?
There is no question that the number of online buyers will be on the continual rise. As the access to the Internet becomes wider, new e-shops are opened, and online trading breaks the borders, and both sellers and buyers benefit from that. But according to the pace of eCommerce development, the number of problems respectively becomes greater.
If we assume an ordinary small-scale producer from any country which has up to 10 employees, they all encounter with similar typical problems. eCommerce giants offer high fees on the existing platforms, and additionally, payment systems charge money. This leads to expenditures which every seller would prefer to avoid.
When small-scale producers go global, they compete with corporations. They need to conquer customers’ confidence. The latter can be solved with 24/7 support, but it requires resources to organize it. Buyers also have a huge issue with fake reviews. Almost everyone received a product which was far different than initially ordered.
2. We currently see the blockchain technology implemented in various sectors. In some cases, it is used by companies as “unfair” tool. How do you find blockchain can change the situation in eCommerce?
The blockchain technology is not perfect for all use cases. But there are obvious advantages for eCommerce. Open, secure, and safe – these are the key features of blockchain technology. In a nutshell, it is a decentralized data storage system – or, in other words, a digital registry of transactions, deals, and contracts made by users. Why is it currently so easy to make fake reviews in eCommerce? We can’t check whether the person posting the review is a real buyer or somebody who made up the text based on other people’s opinion or a paid order from the company. However, it is possible to make the maximum transparent trading system with blockchain.
Thus, the problem with fake reviews can be solved. We call it smart review system, where buyers can write a review only as soon as an order is delivered.
3. It is a compelling solution for buyers, but do sellers benefit from this solution. Is blockchain needed in eCommerce only for online shoppers?
For sure, blockchain solves various problems. Companies will enjoy the perks of affiliate marketing. So-called new media resources are conquering the market. Bloggers are gradually becoming more influential but what is interesting is that companies are mostly interested in working with top bloggers. In other words: only 3 video reviewers out of 100 are responsible for over 50% of the viewership traffic and receive funding through advertising.
The first of the top three in the niche receive an average of 80% of advertising funds in the niche; the second-highest reviewer, 15%; the third-highest, 5%; and other 97 out of 100 in the field publish their content without any influx of advertising money. This self-employed industry needs a push for development — which will increase the overall quality of content available online and result in positive feedback effect for the eCommerce field.
It is doable to bring sellers and reviewers together through blockchain-based affiliate programs. We call it transparent affiliate marketing. A reviewer can choose any item in the store and receive it for free in return for a review that includes a personalized referral link. The blockchain-based referral system will record every purchase made through the reviewer, earning him or her a share of profits made in the deal. While leaving everything transparent to the community. The higher the review quality, the more people will watch the product and use the referral link.
4. So anyone can become a blogger with this transparent affiliate marketing, but how is earning possible with this tool?
Referral link platform earns STQ token payout, where the STQ token is the platform’s medium of exchange. STQ token can be further transferred to any fiat or cryptocurrency.
5. Usage of cryptocurrency is currently highly discussed at the moment. How do you imagine online trading with cryptocurrency?
Again it breaks borders, in this case, it even removes them altogether. By and large, cryptocurrency gives access to any measure of payment. You can sell the product in yen from Tokyo but send your order to a buyer in the US who usually prefers paying in a dollar. Also with the use of STQ token, there is no need to convert and lose money due to various exchange rates, all transactions can stay on the single STQ medium of exchange. Finally, you do not need profound knowledge in cryptocurrency to sell and buy with STQ tokens.