The Future of E-commerce in Web 3.0: Opportunities and Challenges for Small Businesses

We all are looking for ease in our life. The power of the internet has made our lives easier by providing everything with a click. However, if we look a decade back, small businesses had to put a lot of effort into setting up their name. The latest web 3.0 development has now overcome this hurdle and has allowed us to grow proficiently.

With the advancement of web 3.0, a small business can utilize technological advancements and grow. By keeping themselves updated with the new market trends, they can compete with global businesses.

What is Web 3.0?

Before looking into all the perks Web 3.0 is offering, let’s take a dig at what Web 3.0 is about. Web 3.0 is a revolutionary change based on a decentralized, blockchain system. It provides secure and transparent transactions without the involvement of central authorities. The users gain control over their data which makes it highly beneficial for E-commerce.

The future of E-commerce goes side by side with the rapid development of Web 3.0/. It will create new and innovative opportunities for small businesses that will enable them to compete globally.

Opportunities For Small Businesses In Web 3.0

The purpose of every innovation is to bring out feasibility and new opportunities for the users. Web 3.0 aims to provide a sustained and secure system to small businesses so they can accelerate their growth and take their business to the heights of success.

Decentralized Marketplace

Web 3.0 has established a decentralized marketplace which is one of its kind. All the transactions are transparent and secure and do not involve any third party. The absence of a central entity removes conditions of extra charges and commissions. It gives the business owners a better price value.

The customers also relieve themselves from paying platform charges. The business owners set their own rules and regulations. They can also modify them as per the demands of their customers, which creates a sense of trust and harmony with them.

Direct Customer Engagement

One of the highlights of the latest web 3.0 is direct customer engagement. Web 3.0 provides you with a system that connects the customers and the business owners directly. They can discuss things without any restriction of platform rules.

The businesses become more personalized, the business can adapt themselves as per the customer’s likes. Small businesses can outgrow other potentially large businesses in their adaptability. It also helps you get potential customers that will stay with you for a lifetime.

Greater Ownership of Assets

Web 3.0 gives full ownership of assets to business owners. Whenever any of their assets like a photograph, a video, or any other content is sold ahead, the owners will get a commission each time it is sold.

Moreover, they will also retain their identity on the asset so every customer will know you through your work.

Improved Security

Taking a dig at the other platforms tells us that the transactions are not secure and transparent. Neither can you trace them, where they are coming from nor where they are going. The blockchain system allows users to trace their transactions and keep a record of them.

Transactions are recorded under a consensus method, they are then encrypted and linked with the previous transaction. Every person linked with the blockchain system receives a copy of the transaction which minimizes the chance of hacking and data theft.

Challenges For Small Businesses In Web 3.0

With great opportunities come great challenges too. Although web 3.0 has tried to keep everything systemized and aimed to provide the best facilities to its users, it still requires modifications to become an ideal online platform. Here are some challenges that you might have to face starting with wen 3.0.

Requirement of Technical Expertise and Resources

The foremost challenge for small businesses is that they require technical expertise and resources to run their business smoothly online. E-commerce is a vast field and requires a lot of expertise to run efficiently. Working on a small scale does not get you these resources.

Business owners might not be able to understand and navigate the complexities of blockchain and decentralized systems. If you want to run your small business on Web 3.0, you will have to hire a technical expert or go through all the technicalities yourself. Otherwise, you will see yourself at a disadvantage as compared to other large businesses.

Lack of Regulation

Web 3.0, being a decentralized system, lacks proper regulations. There is no check and balance with the ongoing businesses. Although it has made itself flexible for both business owners and customers, there are high chances of fraud, scams, and illegal activities.

Small businesses will have to put in extra effort and resources to keep strict regulations with the business to avoid any fraud and scams. They will also have to ensure that their transactions remain compliant with their regulations.

Fragmentation of the E-Commerce Landscape

The E-commerce market is developing rapidly, and multiple platforms are being developed for this. With time there is increasing competition among these platforms. Small businesses find it hard to select the right platform for themselves. It leads to the fragmentation of the E-commerce landscape.

Even when they have selected a suitable platform for them, coping with the competition gets harder. Different platforms offer different facilities for their users which results in variable growth. Thus, the overall efficiency of small businesses is affected.

Conclusion

The revolution of Web 3.0 has proved to be a turning point in E-commerce. Small businesses can use these platforms to accelerate their growth by having flexible interactions with their customers. The decentralized systems provide one on one interaction of business owners with their customers removing the need for intermediaries.

The transaction systems are also transparent, which gives a secure record to the business owners. The business owners retain their ownership of their products and get a profit margin each time the product is sold.

With all these opportunities, there are a few challenges small businesses have to face leading from a lack of technical experts to proper resources. Small-scale businesses do not have many resources to hire all the technicians to ensure the smooth working of their business. However, with a strong determination, these hurdles can be overcome easily.

 

Resources

• Spiceworks
• Hashtags
• Operation Roi